Environmentally sound and financially rewarding? Key findings from an exploratory study on the Science Based Targets Initiative (SBTi)

By Milena Bar, Ottilia Henningsson, & Dr. Kristjan Jespersen

◦ 5 min read ◦

The Science-Based Targets initiative aligns firms’ emission reduction targets with a net-zero emissions pathway. Firm commitment yields significant abnormal returns which are larger for firms committed to larger emission reductions and for high-emitting firms.

The IPCC’s sixth assessment established a code red for humanity and provided mounting evidence of widespread, rapid, and intensifying climate change. The Paris Agreement, ratified by over 190 states and non-state actors in 2015, formally stipulated the goals of limiting global warming to ideally 1.5°C and at a minimum well below 2°C with the aim of reducing the most catastrophic damages related to climate change onto the natural environment, human health and global financial market. The need for climate action is urgent and requires engagement from governments, individuals as well as corporate and investor participation.

Combatting climate change requires voluntary private sector engagement

Incentivizing corporations and investors to act voluntarily on climate change is critical to redirect private capital towards environmentally responsible business practices. The Science Based Targets initiative (SBTi) is becoming the global standard for firms seeking to set emission reduction targets aligned with the required global decarbonization targets established in the Paris Agreement. By encouraging voluntary corporate carbon emission reductions, the SBTi is a critical tool to reduce the private sector’s reliance on fossil fuels.

2021 record year for new approved targets and committing firms for SBTi

Since its founding, just seven years ago, SBTi has experienced exponential growth in the number of committing firms and has mobilized firms representing more than a third of global market capitalization to reduce their carbon emissions. In 2021 the initiative took steps to increase the ambition level of firms’ emission reduction targets. When first established, firms could commit to reduce their emissions either aligned with the reduction targets of 1.5°C or 2°C. However, from summer 2022, the initiative will only be accepting the more ambitious emission reduction target, as set out in their campaign Business Ambition for 1.5°C.

Since company engagement ultimately comes down to whether committing to SBTi will drive wealth for shareholders, understanding the stock market response to firm commitment to the SBTi is essential not only for businesses looking to commit, but also for investors. To justify the integration of a climate credential such as the SBTi in investment management, it needs to be able to provide excess returns. To understand the stock market reaction to firms’ announcement of SBTi commitment, we conducted a short-horizon event study on a portfolio of 1.535 firms.

Firm commitment to the Science Based Targets initiative aligns environmentally sound practices with financial viability

Firm commitment to the SBTi indeed yields a positive announcement abnormal return and thus speaks to the credibility of SBTi in constituting a credible signal of firm commitment to sustainable business practices. Even more encouraging is the finding that firms committed to the 1.5°C target experienced substantially higher returns, indicating a stronger positive market reaction when exhibiting a higher cost of commitment and higher target ambition level. The market evidently differentiates between ambition levels by rewarding businesses that are pledging themselves to more demanding emission reductions and a more climate-friendly business strategy. These findings are particularly relevant in light of the SBTi making the more stringent emission reduction target the new standard for all firms via their campaign Business Ambition for 1.5°C and may encourage more firms to increase their efforts in reducing their greenhouse gas emissions.

Stock price reaction in response to commitment to the Science Based Target initiative

In turn, high carbon emitting firms, proxied here by firms identified by the CA100+ list, reaped the largest reward in their stock price following commitment. This finding further confirms the market’s more sensitive reaction to costlier commitments, but also creates concern about whether the SBTi may have to rethink a recent strategic decision. The SBTi announced that they will not be accepting targets set by firms operating in the Oil and Gas industry, thus abandoning the industry specific methodology for fossil fuel firms which had been in development for several years. Fossil fuel firms have a key role to play in successfully achieving the goals of the Paris Agreement, thus begging the question of whether the SBTi is not missing out on covering an industry critical to combatting climate change and a sector of firms who are highly rewarded by the market for committing to reduce their emissions.

As climate disasters become more prevalent and more severe, firms who fail to transition to a low, or zero, carbon business model can be expected to become more vulnerable in the long run. To expand the analysis, we further tested the performance of a portfolio strategy screened for firms committed to the SBTi. Despite the underperformance of an SBTi screened portfolio against a portfolio consisting of only non-committed firms in the medium-term, there is reason to believe that a portfolio with SBTi committed firms may provide higher returns in the future. Given that SBTi commitment represents a commitment to aligning the firm’s operations with the net-zero emissions pathway, it can be perceived as a safer bet in the long run. Moreover, portfolios consisting of SBTi firms were shown to be characterized by lower volatility. The objective of investors is shifting to increasingly sustainable and impact focused investment profiles, hence portfolio and asset managers may use SBTi commitment as a filter in security selection to achieve their client’s demand.

Looking Ahead

Financial institutions have a key role to play in driving systematic economic transformation towards a global net-zero carbon emissions economy in their power to lend and invest. As evidenced, firm commitment, ambition level and cost of commitment are reflected in the stock’s pricing mechanism, making the business case for the firm to set ambitious targets for decarbonization, and providing rationale for investors to in the short run utilize the market’s reaction to firm commitment in investment processes and strategies.

About the Authors

Milena Bär is a recent graduate in MSc Applied Economics and Finance and is working as a student researcher in ESG and Sustainable Investments at Copenhagen Business School. Her research projects are mainly within the field of ESG metrics and regulation, with a focus on the investor’s side.

Ottilia Henningsson recently graduated with a MSc in Applied Economics and Finance from Copenhagen Business School with a keen interest in the transition towards a more sustainable financial industry.

Kristjan Jespersen is an Associate Professor at the Copenhagen Business School. He studies on the growing development and management of Ecosystem Services in developing countries. Within the field, Kristjan focuses his attention on the institutional legitimacy of such initiatives and the overall compensation tools used to ensure compliance.

Photo by Matthias Heyde on Unsplash

Constructing Social Portfolios: A Quantitative versus Screening Approach

By Alina Hofer, Lea Katharina Kasper & Dr. Kristjan Jespersen

◦ 5 min read ◦

When we talk about ESG, one could argue that there is a strong bias focused on climate investing, reaching net zero targets as well as good corporate governance and diversity themes. But there is much more to ESG. The “Social” dimension of ESG is hugely under explored and developed and covers under studied issues such as how companies treat their employees and care for the responsibility of their products. Still further, assessments linked to human rights codes and social impacts is only now receiving the attention it truly deserves. Although the importance of these topics is undisputed, we see that attention to particularly address the social dimension has been lacking, whereas awareness of other ESG risks has been rising immensely during the past years.

Not only is the general knowledge and focus on the social dimension of ESG limited, its overall implementation in portfolio management has not been sufficiently experimented with and addressed.

The delay to properly implement the “S” in ESG is often explained because of the challenges to quantify, assess, and integrate social factors generally.

However, this argument should not be a sufficient justification for neglecting the “S” in ESG and for investigating a possible relationship between a good social rating and superior financial performance. To tackle this lack of awareness, we constructed two portfolios which integrate Refinitiv’s Social ratings based on different integration strategies and test their performance towards the market between 2012-2021.

When integrating social – or other ESG – ratings into the investment process, we find there is often disagreement on how to best consider these factors in portfolio construction. Currently, it is most common to apply screening or best-in-class strategies. These approaches aim to remove assets that do not fulfill certain criteria from a defined investment universe. Negative screening would mean to remove those companies that perform worst from the pool of assets. Inversely, an investor could also only continue with those firms who at least have a certain minimum rating. For both approaches, the portfolio weights are then allocated to the assets that remain. This is done using conventional indicators such as value, size or expected risk-adjusted returns. In our study, we, however observe a clear shortcoming of this approach: After screening out the worst 10% “social performers” and allocating weights based on a risk-return trade-off, the portfolio does not necessarily promise a higher overall ESG score than a portfolio would reach which does not consider the ratings at all. Although the portfolio yields a solid financial performance, this raises the question whether any ESG-related impact has been made with this integration approach.

To make sure an investor can improve his exposure to assets that score well in the social dimension, we integrate the rating scores directly into the optimization problem of our second portfolio. This leads to a very different outcome on the social rating:

Looking closer at the mechanics of this approach, we extend the traditional Sharpe Ratio with the ESG factor, meaning to add by how much it a company “outscores” the market average. This results in the following “Social Sharpe Ratio”:

We add a fifty percent weight split, which can be flexibly adjusted towards investor preferences. And we now balance a risk-return-social trade-off. This explains why the second approach over 9 years constantly beats the market average in respect to the integrated Social factor without sacrificing any performance on the financial side. In fact, we find that in 5 out of 9 years, the second strategy would have also led to higher risk-adjusted returns measured by the Sharpe ratio. Moreover, returns were consistently higher compared to the market benchmark. This result is quite remarkable, given that it is often questioned whether investors need to sacrifice returns in order to make their investments more socially responsible.

Lastly, our study resulted in one more unforeseen twist when it comes to integrating ESG ratings. That is, the question whether we can actually trust the rating scores. To answer this, we must first understand how scores are created. Rating providers look at an immense amount of publicly disclosed information, reports and policies. And based on what company’s report, rating scores are aggregated. However, it is clear that a firm would only report on things they do well. In fact, we observe that with increased reporting, ESG scores also improve. But what about the real-life actions and impacts? Some rating providers offer a combined score, which also considers media reports on the involvement in controversial actions. As these scores are only available at an aggregate level, we calculate them on a single-pillar level using Refinitiv’s methodology, which adjusts for firm size and industry. Looking at specific examples in our portfolios, we found that the impact of such controversy involvement on the overall score could still be larger. Nevertheless, we stress that in order to have a complete picture of a firm’s ESG behavior, the impact of these controversies needs to be reflected in investment decisions.

To sum up, given the results of our research, there are three things we aim to highlight:

It is crucial to increase investors’ awareness of “Social” matters and provide a better landscape for impact investments in this specific dimension.
Integrating ESG ratings does not always promise a better ESG performance for the whole portfolio. Therefore, it is necessary to focus on strategies that lead to actual impact.
Third, looking beyond the information that is disclosed by companies themselves, more attention should also be addressed to “real life actions” when making investment decisions.

About the Authors

Lea Kasper has recently graduated with a MSc. in Finance and Investments (cand.merc.) from Copenhagen Business School. Her interest and enthusiasms about sustainability and how to more efficiently integrate non-financial factors in investment decision-making contributed to her choice to further investigate this topic throughout the master thesis.

Alina Hofer has recently graduated with a MSc. in Finance and Investments (cand.merc.) from Copenhagen Business School. Being passionate about creating impact through ESG-aligned investments, she was excited to further focus on her interest in this field throughout the master thesis.

Image source: SustainIt

Corporate social responsibility and societal governance

By Jeremy Moon

◦ 3 min read ◦

Russia’s invasion of the Ukraine reminds us that corporate social responsibility (CSR) is both a reflection of the times we live in and also dynamic! Numerous corporations, acting in response to social and political pressure, are withdrawing from Russia on the grounds that human rights, and a nation’s rights, are being trampled on. This is not to say that these decisions necessarily come easily: there may be ethical, strategic, stakeholder and political tensions. But the point is that perhaps the most basic societal issue of war and peace – and its governance – enters CSR agendas. Ethical investors are even considering the defense industries as suitable for their assets.

In recent decades several challenges have emerged which appear to move CSR from a relative comfort zone of discretionary activities to more core societal governance challenges, some of these manifestly involve some corporate culpability (e.g. the 2008 financial crisis, international supply chain labor abuses, climate change, ecological degradation), others like international pandemics, war and international health and welfare challenges reflected in the UN Sustainable Development Goals, may reflect wider causes. Nonetheless, corporations claim some responsibility for these issues. Even corporate ‘talk’, as well as ‘walk’, contribute to the redefinition of CSR to take in core societal governance challenges.

This is understood as right and proper from some perspectives. Medieval corporations were established precisely to achieve public ends – often of basic infrastructure. Industrial corporations were pioneers of C19th health, welfare and education systems. In many developing countries corporations take responsibility for physical security of their employees and communities.

But in the late C20th a view took hold that this was somehow inappropriate. Milton Friedman’s famous 1970 critique of CSR was precisely on the grounds that corporations are not accountable for addressing such issues: governments are. Many CSR advocates, whether fearing a corporate takeover of government or vice versa, and have advocated a dichotomy between the responsibilities (social and economic) of corporations and those of governments.

Yet the last twenty years have witnessed two related phenomena which challenge the dichotomous view. First, corporations have chosen to engage in social and environmental agendas which are core for national and international governments (e.g. human rights, corruption, access to resources), whether in response to pressure or by virtue of their own ethical or strategic judgement. Secondly, governments have encouraged corporations to enjoin public efforts, through their policies of endorsement and cajoling, financial incentives, partnerships and even mandates (e.g. for energy markets, non-financial reporting, supply chain due diligence).

Governments have recognized the distinctive resources that corporations can bring to governance questions (e.g. to innovate, to experiment, to reach beyond national boundaries, to collaborate). Interestingly in cases of mandate, governments often cede to corporations discretion as to how, rather than whether, to comply. Thus, for example, corporations can choose whether to cynically comply with international weapons sanctions on a country to sell arms by the legal use of third parties to effectively maintain the sales OR to embrace the spirit and intention of the sanctions and uniformly cease the sales to the regime in question.

But Friedman’s critique nags and critics of corporations point to unaccountable corporate power through lobbying and informal influence. Corporations lack a traditional democratic mandate. We elect MPs and governments, but not CEOs. So is engagement with public policy (rather than legal compliance) really the business of corporations?

My short answer is ‘yes’ on the grounds that businesses are members of society and that corporations are afforded particular privileges by the state, and thus have clear public duties. But the situation is not satisfactory. In most democratic jurisdictions corporations’ roles ‘to make’ and ‘to take’ regulation are not clearly specified and thus their accountability is unclear. Moreover, new international multi-stakeholder initiatives which tie corporations in with each other and with civil society often fail to effectively regulate errant organizations.

So we have a challenge which is about CSR and politics: how to better build corporations into political institutions? I suggest that the challenge is shared – for corporations to review their political participation to ensure that it is citizenly; for civil society to engage in defining how corporations can be more accountable and to engage more directly in corporate accountability (perhaps with support from government?); and for governments to review how accountably corporations influence and respond to regulation.

About the Author

Jeremy Moon is Professor at Copenhagen Business School, and Chair of Sustainability Governance Group. Jeremy has written widely about the rise, context, dynamics and impact of CSR. He is particularly interested in corporations’ political roles and in the regulation of CSR and corporate sustainability.

Photo credit: TarikVision on iStock

Do nudges work in organisations?

By Leonie Decrinis

◦ 3 min read ◦

Introduced by Thaler and Sunstein in 2008, nudges have become popular policy tools to change the behaviour of consumers and citizens in desirable ways without compromising their freedom of choice. Their success in public policy domains has sparked the interest of management teams to apply nudges in organisations as means to guide the decisions of employees. However, in comparison to the ever-growing literature on the use of nudges in the public sphere, relatively little is known about their applicability at the workplace.

More and more organisations are pursuing corporate social responsibility and sustainability strategies, for which changes in workplace behaviour are key. Nudges can help organisations promote the needed behavioural change in relevant domains, such as employee health, energy conservation, green transportation, waste management, ethics and diversity, to name just a few. A number of studies report, for example, success in promoting healthier food choices of employees through alterations in the choice architecture of workplace canteens. Other nudging interventions have led to reductions in electricity use by providing feedback to employees on the desirable behaviour of peers. Regarding workplace diversity, evaluating job candidates jointly rather than separately has proved to promote gender-mixed teams. Further, in the ethical domain, honest employee behaviour appeared to rise by reminding people about their shared moral values at critical decision points.

The mentioned examples provide an idea of the potential of nudges as cost- and time-efficient alternatives to traditional organisational intervention tools that mostly involve trainings and sanctions with limited success. A key advantage of nudges is their behaviourally informed approach, acknowledging the role of unconscious decision processes that often contradict people’s good intentions.

By altering the choice environment rather than trying to rewire the human brain, nudges can steer employees to desirable behaviours while preserving their freedom of choice.

Just recently, the United Nations Behavioural Science Week has convened experts from international agencies, governments, academia and the private sector to discuss about these possibilities. However, what has also been recognised, as much as workplace nudging involves opportunities, it comes with challenges that need to be addressed.

The first question that one might ask is how nudging individuals inside organisations for specific concerns leads to impactful organisational change in line with strategic corporate goals. Theory tells us that this is possible indeed by nudging a significant amount of employees. Organisations are made up of people. When enough people are nudged to alter their behaviour in a specific way, the new behaviour has the potential to become a norm, i.e. a rule for expected and accepted behaviour. Once embedded in the culture of an organisation, people are likely to conform to the new norm, so that organisational behaviour changes as a whole.

This idea comes with a caveat though. Organisations are complex social constructs with formal and informal components of organisational culture conveying a variety of messages to employees. A gentle nudge might thereby not be strong enough to induce the desired behavioural change. Signals elsewhere in the organisation could simply counterbalance the effect of a choice-preserving nudge. Typically, nudges are designed and tested for very specific instances of human behaviour. What works in one context might not work in another one, sometimes even resulting in unintended consequences. Clarifying the effectiveness of nudges is difficult in complex organisational settings, particularly regarding their impact in the longer term. This requires consequent piloting and testing over considerable periods of time, allowing for a flexible and adaptive approach to a particular setting.

Contrary to the idea of nudges being top-down policy tools, successful intervention implementation in complex organisational choice environments requires the active contribution of employees. The latter should be consulted about their needs, involved in the design of nudges and informed about the intervention implementation. A high degree of transparency is also necessary to ensure the acceptance of nudges by employees.

Another aspect to keep in mind is that widespread organisational change, such as switching from a solely profit-oriented corporate performance to a more encompassing economic, social and environmental one, cannot be addressed by nudges alone.

Complex organisational problems need to be broken down into micro pieces, suited to be managed by a variety of measures and instruments. Not all of the resulting aspects will have human behaviour at their core. Some might be fundamentally technological in nature, requiring innovative technical solutions. For those problems that remain to be behavioural, the ones that involve serious risks will always call for stringent enforcement tools. Others, however, might be better addressed through a voluntary, trust-based approach. This is where choice-preserving nudges come into play. Clearly, a single nudging intervention can only address a very specific concern. The wider organisational success depends on the aggregate of multiple nudges as well as their interplay with other policies. Measures ultimately need to send consistent messages about desirable behaviours, aligned with an organisation’s broader strategic goals. By influencing organisational culture in an encompassing way, widespread organisational change will gradually take place.

About the Author

Leonie Decrinis is PhD fellow at Copenhagen Business School with research interests in corporate social responsibility, sustainability governance and behavioral sciences. Her PhD project focuses on applying behavioral insights to corporate sustainability in order to align governance objectives with organizational behavior.

Photo credit: Rudzhan Nagiev on iStock

ESG investing in a changing regulatory environment: investing in active or passive ESG financial products?

By Marco Morazzoni and Dr. Kristjan Jespersen

◦ 8 min read ◦

The impending climate crisis emphasizes the need to mobilize large-scale investments to finance the transition towards a more sustainable and inclusive economy. The financial sector plays a pivotal role in this context, as it allocates capital from investors who wish to pursue financial and non-financial objectives to corporations and stakeholders who need these resources to empower the sustainability transition.

Over the past decades, individual investors have become aware of the risks inherent in unsustainable business practices, being increasingly interested in financial products that combine a competitive risk-adjusted return with Environmental, Social and Governance (ESG) criteria. Despite the increase in funds, indices and benchmarks that include ESG dimensions, the universe of ESG financial products remains difficult to navigate for individual investors due to the range of investment strategies that can be used to pursue ESG goals, such as negative and positive screening, best-in-class, ESG integration, impact investing and ESG engagement. In addition to ESG strategic considerations, investors ought to consider the level of active management inherent in their ESG products, since it has considerable implications for financial returns and the ESG objectives pursued.

In fact, while some financial products have an active investment approach, trying to beat a reference benchmark, others merely aim to replicate the ESG impact and financial performance of an index.

‘Active versus passive’ debate

The literature on conventional active and passive investing is almost unanimously in favour of long-term passive investing, due to active managers’ inability to consistently beat the market and to the lower fees charged by passive funds. However, the ‘active versus passive’ debate in the context of ESG investing is more nuanced. This is because ESG investing entails the pursuit of intangible and hardly quantifiable goals that go beyond the achievement of mere financial returns. Furthermore, due to the different definitions and methodologies used in the assessment of ESG performance and the resulting unrealiablity of ESG data, the trade-off between impact and financial returns can be difficult to reconcile.

A study conducted on 78 ESG active mutual funds and 15 ESG exchange-traded funds (ETFs) seeks to contribute to the debate by illuminating the financial and non-financial features that characterize these sustainable financial products. The funds were selected from Morningstar Direct according to specific criteria, such as: availability of an ESG rating, European domicile, invested in equity, active investment approach (for mutual funds) and passive investment approach (for ETFs).

By constructing an equally-weighted portfolio for the selected ESG active mutual funds and ESG ETFs, the study used the CAPM, three-factor, four-factor and five-factor model to compare the portfolios’ risk-adjusted perfromance before and after fees. To increase the robustness of the study, the regression analysis was conducted on various market benchmarks, such as MSCI World, STOXX Europe 600, MSCI World ESG Leaders and MSCI Europe ESG Leaders.

The regression results indicated that the ESG active portfolio outperformed the ESG passive portfolio both before and after accounting for management fees. Controlling for the criteria used in the selection of the funds, the active outperformance could be attributed to the funds’ instrinsic characteristics, such as investment orientation, ESG investment approach and ESG scores. Accordingly, 77% of the ESG active portoflio had a global investment orientation compared to 27% of the ESG ETF portfolio. This entails that the active portolio covered more geographies, exhibiting higher diversification and improved risk-mitigation.

Further, 83% of the active portfolio practiced ESG engagment, a strategy that previous literature associates to superior financial returns and improved ESG impact.

By engaging with companies on ESG issues, ESG active funds may have been able to help ‘lagging’ firms improve their ESG performance, while enabling ‘leading’ firms to address their ESG issues. With respect to ESG scores (Morningstar and MSCI), the active portfolio displayed a lower overall ESG score compared to the ESG ETF portfolio. This finding could suggest that the active portfolio invested in lower rated companies on average, with the objective of helping them transform their ESG strategy and thus pursue higher risk-adjusted returns.

Insights to individual investors in ESG financial products

Recognizing the limitation derived from the small sample size and the fact that the active outperformance might be due to the specific funds selected, the findings were used to provide a set of insights to individual investors who wish to invest in ESG financial products.

Firstly, individual investors were categorised into ESG-unaware, ESG-aware and ESG-motivated, according to the investor labels used by Pedersen et al. (2021) “Responsible investing: The ESG-efficient frontier”. This categorization simplified reality to the extent that it became easier to derive actionable insights. Furthermore, it provided more granularity with respect to investors’ prerogatives regarding the trade-off between the pursuit of an ESG impact versus a risk-adjusted return.

Based on this categorization, investors who disregard ESG information (ESG-unaware) should invest passively in broad conventional ETFs or in a diversified portfolio of more specific conventional ETFs.

Investors who consider ESG information for risk-mitigation purposes (ESG-aware) ought to focus on the level of selectivity displayed by active managers in their stock-picking activity, measured in terms of high/low R-squared. If active managers are highly selective (low R-squared), ESG-aware investors may consider foregoing part of their return, due to the higher active management fees, and thus benefit from managers’ ability to pursue a greater ESG impact and potentially higher risk-adjusted returns.

Conversely, if active managers exhibit low selectivity with respect to a reference benchmark (high R-squared), investors would be better off investing passively in broad ESG ETFs or in a diversified portfolio of more specific ESG ETFs. Lastly, ESG-motivated investors may be better off investing in ESG active funds who practice ESG engagement, as the higher fees charged by these funds would worthwhile, given the superior ESG impact inherent in ESG engagment strategies.

Regulatory considerations

In addition to the empirical findings, the study also included regulatory considerations in the assessment of the suitability of active versus passive ESG financial products for individual investors. This was critical, since the new MiFID for sustainability preferences will come into force on the 2^nd of August 2022.

According to this regulation (2021/1253), investment firms will be obliged to ask their clients about their sustainability preferences and find out whether they are interested in sustainable financial products. If the answer is affirmative, financial advisors will only be allowed to offer MiFID-aligned products to their clients. A MiFID-aligned product will have to include a minimum portion of ‘environmentally sustainable Investments’ (SFDR article 9), EU Taxonomy-aligned investments, or enhanced article 8 investments, consisting of article 8 investments (SFDR article 8) which also include Principal Adverse Impact (PAI) indicators.

Linking the new regulatory requirements to the findings of this empirical research, it is reasonable to expect that ESG-unaware investors will no longer exist, as investment firms will be legally required to inform these clients about the ESG implications inherent in their investments. This will give rise to an increase in supply of sustainable financial products (MiFID-aligned), as investment firms strive to keep up with the increased demand for these products. The rise in supply will most likely be larger than the increase in demand, since a portion of the new ESG-aware investors might continue disregarding ESG information, if ESG financial products are priced unreasonably (excessively high management fees). This will ultimately lead to higher competition among investment firms, with a consequent downward pressure on fees in the long-run. Lower investment costs could subvert individual investors’ incentives, as they decide on whether to invest in ESG active or passive funds. Accordingly, it might become desirable for ESG-aware investors to invest in ESG active funds who practice ESG engagement, as opposed to it being a strategy exclusively suitable for ESG-motivated investors.

The information contained in this blog post is not to be taken as constituting the giving of investment advice or recommendation. The reader is acting for its own account, and they will make their own independent decisions as to whether any investment is appropriate based upon their own judgment.

About the Author

Marco Morazzoni is a recent graduate in MSc Applied Economics and Finance from Copenhagen Business School. Having an interest in finance and ESG, he wrote his master’s thesis on “ESG exchange-traded funds versus ESG active funds: how can individual investors pursue ESG objectives while achieving competitive risk-adjusted returns?”

Photo: Khanchit Khirisutchalual on iStock

Corporate Social Responsibility (CSR) in Asia: Then and now

By Wendy Chapple & Jeremy Moon

◦ 3 min read ◦

This blog post is a repost and has first been published by Business and Society (BAS) blog on 27th of April 2022.

It is both a bit weird and a great honour to be invited to reflect on our paper, “Corporate Social Responsibility (CSR) in Asia: A Seven Country Study of CSR Web Site Reporting”. The process has given us a chance to reflect on what we knew then, what we know now, and how much things have evolved. Our reflections cover memories of the context and origins of the paper; the data available – and unavailable – to us at the time; the approach we took – and what we see as its virtues – and the results; and the relevance of the paper to CSR in Asia today – nearly twenty years on.

As is often the case, the origins of a well-known paper are curious. Our paper grew from the internationalization strategy of the University of Nottingham (UoN) where we then worked in the International Centre for Corporate Social Responsibility (ICCSR). UoN had opened a campus in Malaysia and was opening another in China. So, the Vice-Chancellor encouraged us to engage with our colleagues there …which made us think that we should probably know a bit about Corporate Social Responsibility (CSR) in Asia … hence the paper. Little did we know what this would lead to!

Thanks to the ICCSR, we had the funds to employ researchers with whom we analyzed web site reporting of 50 companies’ CSR in seven Asian countries: India, Indonesia, Malaysia, the Philippines, South Korea, Singapore, and Thailand (bringing a range of business systems in terms of size, religion and culture, political system, and economic development). Hang on, you say, what about China? Our answer is simply that at that time there were barely any Chinese MNCs with English language website reporting… which is certainly not the case now! Although our choice of sample skewed the population to the larger companies with a strong international business profile, this did not concern us as it strengthened the testing of the CSR-shaping role of national business systems.

We focused on broad CSR waves, i.e. community involvement, socially responsible production processes, and socially responsible employee relations. Whilst it enabled broad generalizability of the character of CSR nearly twenty years ago, it does raise some questions of compatibility with current CSR agendas in Asia. However, the more inductive identification of component CSR issues (e.g. community development; education & training; health and disability; environment) makes the findings amenable to temporal comparison, providing a more fine-grained analysis of activity within the waves. We also focused inductively on the dominant CSR modes (i.e. how the issues were addressed). This is when things got interesting. We started to see distinctive country patterns emerge in terms of issues within the waves (e.g. community issues were particularly prominent in India, Thailand, Malaysia and the Philippines, but less so in the other three countries), but this was not the case in the modes. The modes deployed within each of the waves were strikingly similar: philanthropy dominated community investment, and codes and standards dominated production processes. In other words, the “what” rather than the “how” was nationally distinctive.

Some conclusions now seem uncontentious, most obviously that ‘community involvement’ is the CSR priority in Asia. Similarly, there is no “Asian CSR” model, but a set of nationally distinctive patterns of CSR behaviour, resulting from the national business systems, rather than development. Reflective of the impact of globalization on CSR, we found that companies operating internationally were more likely to adopt CSR than those operating only in their home country. One might expect that international exposure might lead to an increase in similarity of approaches across countries; however, we instead found that the CSR of the multinational companies operating in Asian countries tended to reflect their host rather than their home countries, reinforcing the national distinctiveness. However, this finding may be a little simplistic in the light of emerging tensions between international CSR approaches and host country experiences.

It is great to see that CSR in Asia has attracted a volume of research and we are delighted that our paper has been a reference point for some of this research.

Blog Editor’s note: The authors’ paper, “Corporate Social Responsibility (CSR) in Asia: A Seven Country Study of CSR Web Site Reporting” , is open access until December 31st 2022 as part of the journal’s 60th anniversary celebrations

About the Authors

Wendy Chapple is a full Professor of International Business and CSR at the Vienna University of Economics and Business (WU Vienna). She has played central roles in programme design and development, designing CSR related programmes and has been programme director for MSc and MBA programmes in CSR in the UK. Wendy gained recognition for the development of faculty, programmes and research, by winning the Aspen Institute faculty pioneer award in 2008. At WU, she will contribute CSR and Sustainability modules to the CEMs and undergraduate programmes.

Photo: Wikimedia Commons

Institutions matter: The importance of institutional quality when embedding sustainability within the capitalistic realm

By Lisa Bernt Elboth, Adrian Rudolf Doppler, & Dr. Kristjan Jespersen

◦ 5 min read ◦

Institutions not only structure any sort of social interaction [1], but are also essential in solving societal problems [2], such as climate change and the associated threat towards a fair and just future. It is not without reason that the United Nations particularly emphasized institutional progress within SDG 16 [3] to advance to a more effective, inclusive, and accountable society. In a recent study, it was found that institutions matter to a great extent when scrutinizing the relationship between corporate financial performance (CFP) and ESG performance. More specifically, the institutional environment a company finds itself in determines whether sustainable business practices get transformed into financial returns.

The claim that more sustainable companies are outperforming their not so sustainable peers is not new [4] and the consequent shift of investors’ preferences towards more sustainable companies has been taking place with increasing speed over the last decade [5]. Associated wake-up calls and the urge to take ESG into consideration are not surprising either. Besides the alleged desire of investors for a just and sustainable future, this shift is more likely based on the theory that sustainable finance delivers abnormal returns [6]. But is the relationship between sustainable behavior and financial performance as straightforward as it is disseminated? Are more sustainable corporations indeed more likely to achieve better financial results regardless of where they are and what they do?

In fact, when utilizing ESG scores, rankings, and performance as a proxy for sustainable behavior, two meta-analyses [7] [8] concluded that in most empirical studies the resulting relationship was not as simplistic, universal or linear as it is often propagated. In a corresponding literature review, the researchers also identified a large number of discrepancies among scholars in how to statistically model the relationship, what control variables to use and how to even quantify the dependent and independent variables of focus. Following these insights, the researchers uncovered a determining factor in establishing and shaping the emphasized relationship – institutional quality.

Key Findings

The final sample consisted of datapoints from 6,976 corporations, situated in 75 different countries over a period of eleven years or, specifically, from 2009 to 2020. Subsequently, these were analyzed applying fixed effects panel regression models. Both an accounting- and a market-based measure were used to quantify corporate financial performance, respectively, Return on Assets (ROA) and Tobin’s Q. Meanwhile, ESG performance was proxied by ESG scores from Refinitiv (former Thomson Reuters). The variables associated with institutional environment were split into

Institutional Quality, calculated through a factor analysis and based on the World Governance Indicators from the World Bank and
Industry Sensitivity, a dummy variable equal to 1 if the GICS industry of a firm was deemed sensitive towards ESG.

Institutions are among the determinantal factors for the link

Interestingly, the general statistical analysis of ESG and CFP did not yield any significant results, however, when moderating effects stemming from the institutional environment were introduced, this changed. Under high institutional quality, the researchers found a positive relationship between ESG scores and financial performance. Contrarily, the relationship was negative under low institutional quality. Exemplified below by the case of Finland 2012, Argentina 2018 and Zimbabwe 2012, institutions can be seen as the determining factor for direction of the focal link. Furthermore, the industrial environment a corporation finds itself in was found to affect the relationship ambiguously. Generally, sensitive firms seem to receive relatively less financial gain for improved ESG performance, and it may even be negative.

Possible explanations for such dynamics

Legal institutions, such as environmental regulations, labor laws or health and safety requirements, can serve as the means of reflecting sustainable behavior inside a company’s balance sheet. Finland was for instance the first country to introduce a carbon tax capturing corporate pollution by giving it a price and hence affecting accounting profits.
In highly corruptive settings, where the trust of the general public is lacking, the likelihood of sustainable activities being perceived as greenwashing and thus not rewarded by investors, could be another reason for an inverse relationship in low institutionally developed regions.
In line with the previous, when accountability is low, and corporate entities can disclose information without third party verification, it could be relatively easy to stay focused on short-term profits through unsustainable practices but still receive a better ESG rating.
In environments with low institutional quality, banks tend to only give out short-term loans in order to reduce their own risks. This can lead to a vicious cycle of corporate lenders also only focusing on short-term profit maximization which then again decreases their access to capital, constraining their ability to engage in long-term sustainable practices.

Putting the SO WHAT into practice

When setting out for systemic change, it is important to ensure the necessary institutional environment in order to encourage individuals, as well as corporate entities to act in the best interest of the entire society and the planet. Thereby, a bottom-up approach focusing on incentivizing every individual and a top-down approach, fostering legal macro-level change can be synthesized, leading to the best possible outcome. These institutions should seek to maximize accountability, transparency, and mechanisms to internalize negative externalities. Corporations within such environments should fully leverage opportunities associated with sustainable practices, such as cheaper access to capital, in order to incrementally advance the progress towards a just space for humankind. Corporations, which are especially sensitive towards ESG related elements irrespective of their ESG scores, should aspire to enhance their own credibility, as this might award them with a competitive advantage. Lastly, societies with high institutional quality should strive for teaching about their institutions and the associated benefits to everyone else, as a global problem can only be solved on a global level.

References

Doppler, A.R., & Elboth, L.B. (2022). Institutional Quality, Industry Sensitivity and ESG: An Empirical Study of the Moderating Effects onto the Relationship between ESG Performance and Corporate Financial Performance (Unpublished master’s thesis). 22098. Copenhagen Business School, Denmark.

About the Authors

Lisa Bernt Elboth recently graduated with an M.Sc. in Applied Economics and Finance as well as a CEMS Master’s in International Management from Copenhagen Business School and Bocconi University. Her interest in global matters and sustainability has flourished during her studies impacting the choice of master thesis topic and this subsequent blog contribution.

Adrian Rudolf Doppler works as a research assistant for the Department of International Economics, Government and Business at Copenhagen Business School and had just graduated with a Master’s in Applied Economics & Finance and the CEMS Master’s in International Management after a two-year journey. He had always been passionate about ESG, Sustainability and the existing links with the capital markets, as well as the complex system dynamics arising form it.

Photo credit: Galeanu Mihai on iStock

Foodback Loop: Developing Sustainable Food Systems for a Circular Society

By Bruna Carvalho and Lucia Reisch

◦ 4 min read ◦

The Sixth IPCC Assessment Report warns that crops are more frequently lost due to extreme weather conditions than ever before. At the same time, communities across the globe are facing increased – and in many cases acute – food insecurity.

Feedback loops in food production may increase future food insecurities

While suffering the consequences of climate change, our food systems also act as major contributors to it by accounting for one-third of the global greenhouse gas (GHG) emissions caused by human activity. This potentially creates a feedback loop where food production increases GHG emission, which in turn accelerates climate change leading to more extreme weather events that threaten and damage crops, reducing food availably and increasing food insecurity, which increases demand for food production and takes us back to increased food GHG emission stemming from food systems. Something like the diagram below:

Figure 1: Example of a feedback loop within a food system

This is, of course, a snippet of much more complex food systems of provision out there. A full assessment of these systems would consider other elements such as biodiversity, water use, mass production and small scale agriculture, health and nutrition, culture, local, regional, and global scale systems, to mention a few.

The chain of actions and reactions shown in the diagram are what we call a feedback loop, where elements of a system interact, amplifying or dampening each other’s effects. This may sound complicated but becomes easier to grasp through examples. Referring once more to the diagram above, it is easy to see how producing more (+) food could lead to increased (+) GHG emissions, while enduring more (+) extreme weather events could damage crops and reduce (-) the availability of food. This is useful when analysing complex systems and especially handy when it comes to developing solutions that can disrupt a link in the system hence leveraging change towards a desired state.

Mainstream food systems are designed to operate in positive feedback loops – and that’s not positive

As illustrated in our diagram, the current mainstream food system is designed to operate in a positive feedback loop, where the word positive (unfortunately) does not mean something nice or beneficial, but instead that the relationships within the loop (and possibly the whole system) create a snowball effect. This is certainly not what we want. To go in the direction of operating within the planetary boundaries, we must work on the links that offer the most leverage for change (preferably with the least use of resources), and ideally operate only with bounded trade-offs.

A previous BoS article on the importance of food systems for building resilient societies highlighted two major behavioural changes that substantially mitigate greenhouse gas emissions from food systems: avoiding food waste and dietary shifts to plant-based nutrition, which can be leveraged by individual choice.

“Because individual choices are the basis of any healthy and sustainable food system, understanding and influencing consumer behaviour is a promising route to achieving sustainability, resilience, and healthfulness of our food systems and society generally”.

In this sense, we envision that nudging people into making more environmentally friendly food choices will lower “GHG emission” stemming from food systems and will have a beneficial impact on the other elements with which it interacts due to the nature of feedback loops and systems.

The BEACON project explores pathways to shift to a sustainable food system

But how can we move consumer-citizens towards more sustainable diets and reduced food waste? Moreover, how can we design a more resilient food system and food environment? These are the questions we seek to answer in partnership with the City of Copenhagen through the BEACON Project (funded by the Novo Nordisk Foundation). Here, we work in connection with actors who directly and indirectly shape the city’s food environments to employ interventions in real-life settings, which we expect will enhance the experiments’ validity, yield useful results, and increase engagement and “buy-in”. By finding the answers to these questions, we expect to contribute to developing pathways for change and to harnessing and advancing behavioural insights (nudges) that can inform people-centric food and health public policies as well as mitigation efforts by the private sector. We also expect our findings to apply to other systems of provision beyond food.

Developing a circular society

Ultimately, we aim at further developing the concept of a circular society, which builds on the concept of circular economy but is more far-reaching. Circular societies consider less material forms of value creation, are sustainable, just, resilient, deliver social wellbeing within the planetary boundaries and operate in a balanced state among the biosphere, the sociosphere, and the technosphere (Figure 2).

Figure 2: Circular Society. Source: BEACON Project

Given that societies are collectively built, our ambitious goals can only be achieved through open dialogue and collaborative work with practitioners, policymakers, researchers and civil society. If you would like to contribute to this discussion, you are most welcome to write to us here.

About the authors

Bruna Carvalho is Research Assistant at Copenhagen Business School. She brings research experience in the areas of transformational sustainability entrepreneurship, policy reviews and road mapping for sustainable public procurement, and transdisciplinary research in the field ecosystem conservation in partnership with the Waorani indigenous people (Ecuadorian Amazon). As a practitioner, she founded the Sustainability Commission of the Brazilian Federal Justice (State of Paraná), where she acted as Commission Secretary for three years.

Lucia Reisch is the El-Erian Professor for Behavioural Economics and Public Policy at the University of Cambridge, the founder of the Consumer and Behavioural Insights Group (CBIG) at Copenhagen Business School, Department of Management, Society and Communication, and the principal investigator of the BEACON project. She is a behavioural economist and social scientist and one of Europe’s leading academic experts in behavioural insights-based policies for sustainability. Lucia is an Editor of the Journal of Consumer Policy (SpringerNature) and a founding Editorial Board Member of the Journal Behavioural Public Policy (Cambridge University Press) as well as a member of the Editorial Board of Food Policy (Elsevier), among other editorships.

Photo credit: Scott Goodwill

Innovation as a Survival Mechanism during the COVID-19 pandemic: Successful examples from the foodservice industry

By Anna Sophie Hauge, Marie Haadem and Meike Janssen

◦ 4 min read ◦

Innovation fosters creativity and generates growth – especially in times of crisis. The foodservice industry has been hit extremely hard by COVID-19 and the corresponding restrictions and lock-down measures. While many businesses in the foodservice industry struggled to survive, some took the opportunity to innovate. The question is then, what drove businesses to innovate in the middle of the crisis?

Drivers of firm innovation and the outcomes differ from case to case, however all can be connected to overarching themes. The external shock of the COVID-19 crisis is undoubtedly one such theme which has created new environments for supply and demand within the foodservice industry.

…times of crisis may provide an opportunity to develop dynamic capabilities more quickly than good financial times. A possible explanation is that ‘dynamic environments’ are needed to deploy dynamic capabilities
Alonso-Almeida et al., 2014

In the spring of 2021, we interviewed five courageous food-entrepreneurs, all using innovation as a survival mechanism throughout the crisis. We used John Bessant and Joe Tidd’s 13 drivers of innovation as the starting point to have a closer look into five small- to medium-sized innovative companies from Copenhagen and Oslo: a gourmet pizza takeaway, an online grocery delivery, an online fruit and vegetable delivery, a vegetarian takeaway, and a café takeaway.

Besides the crisis itself being the most powerful driver of innovation, the need for change in the way people consume and offer food services proved to inspire numerous innovative measures (See Table 1). The trends and environments created by COVID-19 inspired new processes within our pre-existing case firms. For the three firms established pre-COVID-19, a large focus was put into the implementation of contactless home deliveries.

Additionally, we found that the crisis even triggered the innovation of completely new businesses. The two we interviewed exploited the rapidly changing environment to meet new needs, employing pandemic-friendly formats to deliver their services. An example is the highly integrated use of Instagram as a food ordering and communication platform. Innovation of business processes and products became survival means for our firms within the foodservice industry, as it helped them keep up with new consumer needs in the context of the pandemic. At the same time, these changes elevated the firms’ value propositions due to the new operating circumstances imposed by COVID-19. Products and processes were adapted to the COVID-19 trend of ‘support your locals’ throughout lockdown, through the integration of local suppliers and products. Innovations in relation to such trends helped target important social values during the pandemic.

Many of the innovations within the case companies originated from the necessity of minimizing the spread of the COVID-19 virus. Changes to the physical spaces of the foodservice firms and higher focus on contact through digital channels are examples of measures taken.

Characteristics of Success

Four out of the five firms were small in size. Each firm utilized collaborative relationships in the development of their products and services during the pandemic. Congruently, these firms explored new market opportunities; both in the expansion and adaptation of product lines and services, but also starting completely new businesses. Another characteristic was the integration of technology, such as online ordering and social media communication. We also found that the firms innovating during crises did not compromise on costs in their innovations. Ultimately, these characteristics developed and supported the firms’ crisis-driven innovation. It was also recognized that the pre-existing firms were innovative also before the crisis, which helped facilitate their innovation in times of distress. These characteristics are identical to those found in companies that innovated during the financial crisis in 2008.

Two additional characteristics were identified in the firms; firm flexibility and targeting niche segments. High flexibility was identified within the case firms, introducing options for pre-ordering, and thereby allowing for efficient and sustainable use of resources. Firm flexibility was also created through the use of digital modes of operations like online communication platforms and ordering systems. Lastly, four of the case firms have niche and urban customer segments. They target a trendsetting, educated urban-elite, all living in central Copenhagen or the West End of Oslo. Both the firms’ business models and unique selling propositions are non-typical for the given industry. Having such target groups and trend-setting concepts is seen to have enabled successful innovations. These two firm characteristics arguably provide the necessary infrastructure for the innovations’ success and are recognized to be essential for firm survival in times of crisis.

In the end

It is inspiring to see that times of crises can inspire people, and that courageous steps are being rewarded in a dynamic environment with open-minded customers. However, not all cafés and restaurants were as lucky as the ones in our study. Now that restrictions are no longer in place, the foodservice industry deserves our support, and you deserve to regularly treat yourself to a nice dinner or lunch.

About the Authors

Anna Sophie Hauge is studying her master’s in Finance and Strategic Management at Copenhagen Business School. Outside of her studies, she is currently working as a commercial student analytic at Løgismose, a Danish food brand, focused on quality and ecology.

Marie Haadem is currently finishing her Master’s in Management at IE Business School in Madrid, specialising within Finance and Investment. She will be joining Citigroup this July as a Banking Analyst for the EMEA Banking Analytics Group in Spain.

Meike Janssen is Associate Professor for Sustainable Consumption and Behavioural Studies, CBS Sustainability, CBS. Her research focuses on consumer behaviour in the field of sustainable consumption, in particular on consumers’ decision-making processes related to sustainable products and the drivers of and barriers to sustainable product choices.

PhPhoto by Kai Pilger on Unsplash

How do we think about sustainable investing? Suggestions from an exploratory study

By Margherita Massazza & Dr. Kristjan Jespersen

◦ 4 min read ◦

From the outset, this blog post takes the perspective that behavioral finance is required to assess the perceived tension in sustainable investing (SI). Our work investigates the extent to which sustainability considerations are included in investment decisions, and the drivers behind SI approaches.

Sustainability is increasingly integrated in financial markets, with the acronym “ESG” (Environment, Social, Governance) becoming an all-encompassing term widely used in all phases of the investment process. According to a recent global review, sustainable assets [1] reached USD 35.3 trillion at the end of 2019, representing 35% of total professionally managed assets, and they are set to grow further in the coming years. Yet, despite its growth and the positive sentiment associated with it, there is an inherent tension in sustainable investing.

This tension stems from the apparent disconnect between the theoretical assumptions of classical financial models, focused on risk and financial returns as the predominant determinants of investment decisions (e.g., Capital Asset Pricing Model, Modern Portfolio Theory, etc.), and the empirical evidence of SI, where portfolio allocations are affected by non-financial aspects like personal values and social pressures. How can we make sense of this tension?

Usually, the contradiction is formulated in terms of a tradeoff between financial returns and ESG impact: in order to achieve one, investors must forego the other. However, this view is still rooted in a traditional finance perspective, according to which including ESG considerations or seeking a non-monetary impact comes at the expenses of returns.

There needs to be more nuance in how sustainable investing decisions are investigated and assessed. Given the pervasive and engaging nature of ESG issues, sustainable investing is likely shaped by internal and external forces that go beyond the financial-vs-impact debate. By acknowledging the role that cognitive limitations, biases, and the external context play for investments, behavioral finance allows to capture the financial impact of factors that tend to be overlooked in mainstream financial theories.

Under this perspective, the authors carried out a study based on primary data from European retail and professional investors. It focused on two main questions:

To what extent are sustainability considerations included in investment decisions?

Firstly our analysis broke down the relative importance of four attributes for the investment choice, i.e. the relative weight (expressed in percentage) that each characteristic exert on the investment decision. Sustainability attributes carry a relative importance of about 38%, with ESG score displaying a 26% relevance, and the investment’s end objective a 12% relevance. Taken together, these parameters display a larger role than standard financial attributes of risk level (relative importance of 33%) and expected returns (relative importance of 29%) (Figure 1). The results confirm the significance of ESG aspects for a well-rounded assessment of an investment, arguing against the traditional perspective of risk and returns as the sole determinants of investment choices.

*Figure 1 – Relative importance of investment attributes for investment choice, by investor type*

What drives investors to invest sustainably?

Secondly, we identified the main tendencies leading investors to engage in SI. Starting from a set of 16 heterogeneous motives, 4 main drivers emerged: a desire for self-expression, a financial-strategic rationale, the influence of the external context, and an opportunistic motive (Table 1). These drivers depict SI as a multifaceted phenomenon that unfolds along various dimensions, and not only on the financial and impact layers. They propose a novel perspective to think about SI, which takes into consideration how endogenous (e.g., alignment with values) and exogenous (e.g., role of regulation) forces may affect investments.

*Table 1 – Drivers of Sustainable Investing*

How can the findings help us better assess sustainable investing?

This analysis shows the extent to which ESG aspects are integrated in investments, confirming their importance for investment choices. It also shows the multidimensionality of SI drivers, which eschews the rigid perspective of traditional finance and accounts for the impact of relevant internal and external factors.

With this understanding, it is possible to formulate practical insights for industry participants to address the current challenges of SI. In fact, there are concerns related to the over-inclusion of sustainability in investment decisions at the expenses of fundamental financial analysis, which may lead to mispricing, inflated asset evaluation, and potentially an “ESG bubble”.

Standardize definitions and improve sustainability communication. Social context emerged as one of the drivers of SI, and regulators have a strong role to play in harmonizing the meaning of sustainability in finance. Legislative and non-governmental bodies are working to overcome the lack of standard definition and frameworks in SI – e.g., via the European Union’s Sustainable Finance strategy. Their effort to create a common vocabulary and shared understanding of what SI entails will help to align incentives, concepts, and strategies. In parallel, the financial-asset supply side (e.g., fund providers, financial advisors, etc.) should communicate clearly and extensively on the sustainability aspects of financial products. Given the importance of ESG characteristics for investment choices, this will ensure investors have reliable and trustworthy information to guide their investments. Together, the agreement in terminology and the availability of sustainability information will reduce the possibility for misinformation and opportunistic tendencies to sway investment decisions.
Recognize the existence of complex drivers behind sustainable investment decisions. Investors, both professional and retail, should evaluate how different motives affect their investment choices. Knowing that multiple drivers exist will ensure that investment are aligned with goals, limiting the influence of irrationality and misinformation. This will not only benefit investment strategies, but also curb counter-productive results such as the emergence of an ESG price bubble. To explore what drives investor’s decisions, an ad-hoc survey could be submitted ahead of opening investment accounts, mirroring the logic of the MiFID directive. This may have positive effects, such as involving more retail investors in sustainable investing [2].
Finally, consider adopting a behavioral approach when studying sustainable investing. The flexibility of behavioral finance may allow to grasp further insights and help to think about this timely topic in a novel way.

References

[1] The Global Sustainable Investing Alliance (GSIA) considers defines “Sustainable” all assets that integrate ESG factors in the analysis and selection of securities. More detail in their latest global report.

[2] Retail investors still face barriers to fully engage in SI: the topic is investigated in the paper “Investment Barriers and Labeling Schemes for Socially Responsible Investments” by Gutsche and Zwergel (2020).

About the Authors

Margherita Massazza is a CBS and Bocconi graduate in Economics of Innovation, with a focus on Sustainability. Her research investigates the links between traditional investments and behavioral finance to understand how sustainability decisions unfold. She is currently working in the Foresight team of AXA, an insurance company, where she studies the role that corporations will play in the future and how the concept of sustainability will evolve.

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No Trees, No Future: How can we unlock the full potential of conservation finance?

By Dr. Kristjan Jespersen, Dr. Izabela Delabre, Dr. Caleb Gallemore, and Dr. Katryn Pasaribu

◦ 3 min read ◦

Tropical deforestation continues at alarming rates, with 12 million hectares of tropical tree cover loss recorded in 2018. Much of this deforestation is linked to large-scale agricultural development. Palm oil companies are seen as key deforestation culprits due to high-profile media campaigns being led by NGOs and, in response, recent years have seen the proliferation of private sector pledges and initiatives to address deforestation in the palm oil value chain. There has also been growing international focus on forest conservation in the context of climate mitigation, with countries at 2021’s United Nations Climate Change Conference (COP26) pledging to halt deforestation by 2030. Multi-billion dollar initiatives, such as the Bezos Earth Fund are investing in nature-based solutions to address climate change, including through the protection and reforestation of forests and other ecosystems.

Given these ambitions, an important question for corporate sustainability and conservation research and practice is how to link financing mechanisms for conservation and value chains, two policy streams that are generally disconnected. Actual methodologies for understanding appropriate, long-term financing for forest conservation remain elusive, and this knowledge gap hinders the clear assignment of responsibility, accountability and sustainability of conservation efforts.

Articulating “conservation finance” (the “mechanisms and strategies that generate, manage, and deploy financial resources and align incentives to achieve nature conservation outcomes”) with value chains could help align incentives between actors and facilitate increased financial flows from the private sector to conservation.

Introducing No Trees, No Future – new research project

An ambitious new research project “No Trees, No Future – Unlocking the full potential of conservation finance”, funded by the David and Lucile Packard Foundation, seeks to design and test a rigorous methodology for understanding the responsibility for conservation finance of influential firms in the palm oil value chain. It addresses important knowledge gaps that currently impede effective conservation finance, examining questions such as: Which firms are responsible for financing conservation? What are the motivations of firms to engage in different types of conservation finance initiatives? To what extent are companies willing to internalize conservation costs? What might cost-sharing models look like?

This novel, interdisciplinary research project uses a mixed-methods design that combines in-depth case studies, surveys and remote sensing to explore how the costs of conservation may be shared effectively and equitably between palm oil value chain actors, and provides a resource for external stakeholders seeking to identify firms’ contributions to land cover change, in Indonesia to start with.

The research will involve the development of data-intensive methods to assess the spatial footprint of the supply chains of a set of lead firms in the oil palm value chain, as well as in-depth interviewing of stakeholders across the palm oil value chain to identify the feasibility and possible impacts of adopting new methods for conservation finance.

Our goals are: (1) to develop a methodology that can be readily applied to estimate lead firms’ responsibility for contributing to conservation finance in the palm oil sector, and (2) that business models and strategies integrate conservation finance effectively, supporting more equitable cost sharing.

The research will identify several possible models for assessing spatial footprints of firms’ supply chains in the oil palm sector, testing their feasibility with a selected group of investors and conservation project proponents. Following this initial project, which focuses on the palm oil value chain, we intend to explore possibilities in other commodity sectors, and how to scale up efforts to support effective and equitable conservation finance.

To what extent will companies be willing to absorb the costs of conservation finance into their supply chain transactions? How might potential barriers be overcome? It is our intention that the project contributes to companies taking on greater responsibility for conservation finance, embedding long-term conservation costs into the palm oil value chain (that are currently externalized), disrupting ‘business as usual’ to support forest conservation, given their critical role in climate mitigation and biodiversity conservation.

We will share our interim findings on this blog as the project progresses. We would be delighted to hear from researchers from different disciplines and practitioners working in this field. If you have any questions or comments, please get in touch!

About the Authors

The two-year project is led by Dr. Kristjan Jespersen, Associate Professor at the Copenhagen Business School (CBS). The research team includes Dr. Izabela Delabre, Lecturer in Environmental Geography at Birkbeck, University of London; Dr. Caleb Gallemore, Assistant Professor in the International Affairs Program at LaFayette College, Pennsylvania; and Dr. Katryn Pasaribu, seconded from Universitas Prasetiya Mulya to CBS.

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How do we find the green elephant in the classroom?

By Lavinia Cristina Iosif-Lazar, Jens Riemer and Caroline A. Pontoppidan

“Environmental sustainability to be at the core of EU education and training systems” – So reads the latest recommendation from the European Commission to EU education ministers, which highlights that “learning for environmental sustainability is not yet a systemic feature of policy and practice in the EU.” How then do we better inform practice and policy? Where does one even start to look at what has already been achieved and what more needs to be done on environmental sustainability, especially in Higher Education Institutions (HEIs)?

Coupled with the complexities of incorporating sustainability in HEIs and the diversity of methods used by HEIs in advancing these efforts or curriculum overhaul, the task of bringing about systemic change and reaching the targets set on climate mitigation and biodiversity can seem daunting. But this is where a good picture of where we are now and where we want to be, can make a difference.

Global pollution of, among other things, air, soil, and water, increasing exploitation of the resources of the Earth, and global climate change are challenging nature, environment, and public health. Also, Denmark and the world are in the midst of a biodiversity crisis caused by man-made pollution and exploitation of natural resources and habitats, global spreading of invasive species, and climate change. The intensive exploitation of the open land, forests, coastal zones, and marine areas has caused nature to be fragmented and continuously exposed to a number of stress factors, which means that biodiversity is on a constant decline
(p.17)

The EU Context: broadly speaking, all education needs to be green

At the EU level, we do not lack initiatives that have brought into focus the greening of the curriculum and the need to address climate and environmenal issues at all levels of education and training. The European Education Area (EEA) is an initiative aimed at strengthened collaboration between European Union Member States to build more resilient and inclusive education and training systems. One of the five focus topics of the initiative centers on Green Education. GreenComp – The European Sustainability Competence Framework developed by the European Commission was one of the cornerstones in the educational scope of the European Green Deal. Published in January 2022 and aimed at providing a shared competence framework on sustainability to guide educators and learners, the framework can be used by member states as a reference when rolling out educational initiatives on sustainability.

However, even with all the attention given to education initiatives, there is little direct appealing to HEIs at the EU policy levelMost of the time, communication is directed towards the whole sector leaving the specific directionality of the initiatives to the individual Member States and HEIs are most often mentioned together with schools and other training institutions. The GreenComp report mentions Higher Education a few times but only to illustrate that Higher Education has succeeded in creating a focus on competences for environmental sustainability in relation to preparing the students to address sustainability challenges and opportunities in their working life.

The Danish Context: The Danish Ministry of Education and the Green Transition

In September 2020, the Ministry of Higher Education and Science, Denmark, published ‘Green solutions of the Future’, a strategy for investments in green research, technology, and innovation. It also highlighted the important role of close collaborations between knowledge-institutions and the business community. To get things moving, the Danish government decided to allocate research funds to boost green research and also bringing more focus on green study programmes.

And the issue of what was happening in HEIs on green research quickly became a focal point. In December 2021, the Danish Ministry for Education and Science sent a request for data on the work HEIs were doing to integrate green themes in educational programmes. The Ministry asked institutions to submit an overview of seven green themes and the coverage of those themes in their programmes. Among these themes, two were focused on energy production and effectiveness, and the others addressed agriculture, transport, environment, biodiversity and sustainable behaviour.

The CBS Context: Green Themes in study programmes

There are multiple ways in which HEIs can find out what content in their educational offerings addresses the green themes described by the Danish Ministry. The way in which CBS did it, was to build on already initiated course content analysis and expand it to include the seven themes. In the academic year 2021-2022, CBS offered 18 Bachelor (undergraduate) programmes, 36 Master (graduate) programmes, as well as HD, Executive and special Master programmes. This amounts to a lot of data to go through and analyse. Other universities or schools might face the same issue of data being both diverse and difficult to gather, but once it is gathered, the managing the amount of data can become a challenge.

CBS used the qualitative research tool NVivo, to analyse and code data from courses in all CBS’study programmes. This was done by identifying specific key words related to the given seven green themes (see table below). The data collected was derived from study programme competency profiles, course descriptions and learning objectives. For every search result returned, the context was analysed and only relevant hits were then recorded in the respective codes.

Theme 1	Theme 2	Theme 3	Theme 4	Theme 5	Theme 6	Theme 7
Energy production	Energy effectiveness	Agriculture and Food production	Transport	Environment and Circular economy	Nature and Biodiversity	Sustainable behaviour and Societal consequences

How do Green Themes look like in a study programme at CBS?

Once the data was collected and the content analysed, a relatively comprehensive picture emerged of how and where the green themes are present in a study programme at a European business school like CBS.

Case 1 below, illustrates a visualization of an anonymised bachelor programme. It presents how the seven green themes can be visualized so to give an “as is” picture. With this information, study programmes can dive deeper into the green content that they already have embedded in their programmes and/or identify that they are interested in additional integration of the seven environment themes into education.

*Figure 1: Case 1 – Bachelor Study Programme A (BSc. A)*

Bachelor Study Programme A had extensive coverage of Green Themes 5 through 7. The numbers in each cell of the below table represent the number of hits (keywords) per theme. Within the Bachelor Study Programme A, the green themes were identified in both mandatory and elective courses, in their respective course descriptions (CD) and learning objectives (LO). Environment and Circular economy, Sustainable development and Social consequences, as well as Nature and Biodiversity were the themes found represented in the Bachelor Study Programme A courses.

The continuous loop: research, policy, strategy and the classroom

The analysis and reporting of course content on green and environmental themes can function as a basis on which discussions about environmental sustainability in an institution’s educational activities can be taken. Getting this overview can inform further work to advance both content and scope that strengthens the advancement of environmental sustainability competences. These can later also find their way into regional strategies as well as inform policy makers at the International and European level. Having a well-informed stance on how, where and which environmental content and competencies HEI graduates obtain during their education can highlight where efforts need to be targeted. This also means that HEIs become a part of the action on “greening” the curriculum and, in turn, can better inform policy makers and education initiatives.

The business school sector has much to build upon. Pioneering scholars have long focused on issues of the environment and sustainability. There has been a dramatic uptake in the last decade of attention to climate change by business scholars, encouraged by editorial statements and special issues in the leading journals in every one of our disciplines. In the classroom, these issues are increasingly being discussed in core and speciality courses, representing significant curricular shifts, and supported by our accrediting bodies
(Galdon et al., 2022)

To read the full report, please visit CBS PRME InFocus Report series: https://www.cbs.dk/viden-samfundet/indsatsomraader/principles-responsible-management-education/resources/prme-infocus-reports

References

Bianchi, G., Pisiotis, U. and Cabrera Giraldez, M., (2022). GreenComp: The European sustainability competence framework, Punie, Y. and Bacigalupo, M. editor(s), EUR 30955 EN, Publications Office of the European Union, Luxembourg, 2022.

Danish Ministry of Higher Education and Science (2020). Green solutions of the future – Strategy for investments in green research, technology, and innovation.

Galdón, C., Haanaes, K., Halbheer, D., Howard-Grenville, J., Le Goulven, K., Rosenberg, M., Tufano, P. and Whitelaw, A. (2022) Business Schools Must Do More to Address the Climate Crisis.

About the Authors

Lavinia Cristina Iosif-Lazar is a project lead on Principles of Responsible Management Education at the CBS Teaching & Learning Department. Lavinia’s work centres on curriculum development, climate and carbon literacy and systemic thinking in management education, as well as assisting in the development of teaching materials.

Jens Riemer is a Green Transformation Officer at Copenhagen Business School, within Executive Support and Communcations. Jens works with the cross-cutting strategic initiative Green Transition, which focus on bringing together key players in establishing an organizational frame and initiate concrete problem-based research and educational activities.

Caroline A. Pontoppidan, Associate Professor department of Accounting & Academic director CBS PRME. Her research often engages with the institutionalization of global standards into local context – and challenges herein.

Photo by Alex Lvrs on Unsplash

Sustainable labour market integration: challenges and advancements in algorithmic profiling of jobseekers

By Clément Brébion and Janine Leschke

◦ 5 min read ◦

The number of countries that are using algorithms to profile jobseekers has been on the rise since the 1990s. Algorithmic profiling aims at identifying individuals with little counselling needs, and those for whom intensive counselling and active labour market policies (ALMP) are expected to have the largest returns. The ultimate goal is to target services and thereby expenditures towards the latter. In a dual context of budget constraints and of technological innovations (which makes it possible to build and analyse large register databases), profiling algorithms are increasingly seen as an important vehicle to identify and target those unemployed who are most likely to become long-term unemployed. In an EU-funded project, HECAT – Disruptive Technology Supporting Labour Market Decision Making, we question this consensus. The goal of the project is to go beyond state-of-the-art profiling tools and develop a tool that will allow jobseekers and counsellors to get a snapshot of their labour market situation and a better sense of their labour market options.

State-of-the-art statistical profiling tools carry important shortcomings. One of them relates to the outcome category when used for defining the profiling categories. Most profiling algorithms approach jobseekers’ needs for counselling and for training programs by measuring their likelihood to remain unemployed for more than 6 or sometimes, 12 months. Usually, any type and length of employment spell is counted as a successful exit from unemployment in these models. Research on the causes and consequences of long-term unemployment (LTU) is extensive and we know that an early identification of the jobseekers that are likely to fall into LTU to take action at the earliest stage possible is key.

However, the mere focus on exits towards any type of employment is problematic. On individual grounds first, it disregards the agency of the unemployed by ignoring her lived experience of unemployment and wishes and aspirations for future labour market integration. Second, such a focus on exits without job quality in focus, can also be dysfunctional and inefficient both from the perspective of the individual and the PES as unsustainable labour market integration is likely to lead to vicious circles where people circle between (short-term) employment and unemployment.

In order to address this shortcoming, in deliverable 2.1 of the HECAT project, we discuss the scope for using job quality information in profiling and job matching tools. We develop a list of 24 items covering 7 dimensions that we see important to take into account to meet SDG (sustainable development goal) 8 on decent jobs and economic growth [1]. We do so by drawing on established job quality indices (e.g. here and here).

By putting the quality of jobs in focus, such an approach provides a more complete and sustainable vision of the labour market to the unemployed and the job counsellors and thereby increase their agency.

As we outline in the deliverable there are a number of challenges with this approach. This includes the high complexity of multi-dimensional job quality indices in view of an efficient and usable counselling and visualisation tool as well as a lack of sufficiently detailed job quality indicators on the level of occupations or sectors.

As regards data protection and data privacy, profiling algorithms also carry the risk of being in conflict with the GDPR and the case law of the European Court of Human Rights and the Court of Justice of the European Union. Importantly, these legal bases provide no ready-made ‘checklist’ as to which data can be used, nor which algorithms can be implemented. Impact assessment of algorithmic profiling or job matching tools based on algorithms must therefore take place on a case-by-case basis that takes into account the impact of the algorithm on the citizens. Governments most often disregard the need for these impact analyses and entire profiling algorithm are therefore at risk of being shut down, such as in the Austrian case in 2020.

Impact assessments should first stress the necessity of using privacy-violating profiling algorithms. This can be justified in order to comply with a legal obligation to which the public authority is subject or for the performance of a task carried out in the public interest. The proportionality and fairness of profiling algorithms must also be checked and ensured. Proportionality relates to whether the ends justify the means.

For instance, collecting and analysing data carries a cost, in terms of privacy, which must be compensated by clear gains in accuracy. One should therefore not feed the algorithm with variables that have little explanatory power. Fairness concerns imply that one should ensure that profiling algorithms are not discriminatory. This is not straightforward. Profiling algorithms classify the unemployed based on the typical behaviour observed among other jobseekers with similar characteristics. As a result, individuals from social groups that are traditionally the least attached to the labour market will be profiled as high-risk individual more often than the rest.

While this behaviour of profiling algorithms seems intuitive, research has found that among jobseekers who happen to quickly find a job, those from foreign origin are more likely to be misclassified as high-risk individuals ex-ante than natives.

The fairness condition therefore seems hard to meet for profiling algorithms. Last, profiling algorithms should only use data that is up to date and relevant and, importantly, one should ensure that jobseekers and PES counsellors who use the algorithm have a good understanding of its functioning and limitations.

Whether or not the use of an algorithm is legal must be continually assessed before, during and after development and implementation. In a working paper based on deliverable 2.2 of the HECAT project, we therefore propose a model for designing algorithms to sum up these considerations. The model is circular in order to illustrate that the assessment should be continually updated.

A proposed model for designing algorithms

*Source: Working paper based on HECAT deliverable 2.2*

“Working with not on the unemployed”

Given these shortcomings of state of the art profiling tools, our European project HECAT puts the unemployed persons and their aspirations and needs centre-stage. It aims at building a sustainable digital platform “My Labour Market” which provides both information on the estimated length of time before one exits the unemployment record and a visualisation of labour market opportunities according to one’s job quality preferences. This digital platform, to be piloted at the Public Employment Services in Slovenia, builds on extensive sociological fieldwork on unemployed persons and case workers. This tool will not sort jobseekers into profiling groups associated with specific services and labour market measures. Instead, we believe that well-informed jobseekers will make the best choices for themselves.

[1] The dimensions are: pay and other rewards, intrinsic characteristics of work, terms of employment, health and safety, work-life balance, representation and voice, distance to work.

About the Authors

Clément Brébion, postdoctoral researcher, received his PhD in economics in November 2019 from the Paris School of Economics. His main research interests are labour economics, economics of education and industrial relations. He has a particular interest into comparative research. More recently, he started working on the EU H2020 project HECAT that aims at developing and piloting an ethical algorithm and platform for use by PES and jobseekers.

Janine Leschke, political scientist, is prof MSO in comparative labour market analysis. Her research interests comprise issues such atypical work, job quality, labour mobility and migration, youth unemployment, as well as gender. She is currently the Danish lead partner in the Horizon 2020 project HECAT, participant in EuSocialCit and one of the editors of Journal of European Social Policy.

Photo by Campaign Creators on Unsplash

Do Tourists Like Nudges?

By Elizabeth Cooper

◦ 4 min read ◦

Nudges have been successfully implemented in various social settings, as a method of guiding people’s decisions in certain directions whilst maintaining their freedom of choice. A number of studies have found high levels of support for nudges across different cultures. However, the context of tourism brings with it some complexities that might make nudging tourists in particular both more challenging and less acceptable.

The “context of tourism” is, of course, not a distinct or objective place or time. Tourism as a practice is in many cases intertwined with the everyday lives of others, so the same nudges that we are exposed to in our local supermarket may also be encountered by a tourist who is visiting our town for the weekend. What defines the tourism context in terms of nudging, therefore, is that the nudge is specifically targeted at people who are on holiday.

However, existing research suggests that it may be harder to nudge people when they are on holiday than when they are in their everyday contexts, for two main reasons:

We behave differently on holiday than we do at home. We tend to see holidays as an escape from everyday life, and a context in which we deserve to indulge our bad habits without feeling guilty. Complying with a nudge should, by definition, not reduce the consumer’s pleasure – as a result, it is challenging to design acceptable nudges in a hedonistic context like tourism, in which pleasure takes priority.
We can be less inclined to do things for people we feel different to. While many nudges in our everyday lives are designed to guide us towards choices that are beneficial to ourselves (such as making healthier food choices, or encouraging us to save more of our paycheck), nudges targeted at tourists are often focused on the welfare of groups of people (often host communities) who can feel distant. Existing research in psychology has argued that we are more likely to connect with and feel empathy for others if we perceive similarities between us and them. This can make tourism settings unfavourable for nudging, since many people actively seek to experience difference when they plan a holiday.

Studies on nudging acceptance in general have consistently found that people tend to prefer ‘System 2’ nudges over ‘System 1’ nudges. System 2 nudges are more transparent and require more cognitive effort (for example, providing a hotel guest with information about the environmental impact of their stay). System 1 nudges tend to play on our intuitions and subconscious cognitive processes (for example, including carbon offsetting as a default in a flight purchase, so that customers have to opt out of it rather than in). There are not yet any studies on approval of nudges among tourists, but we can look at which kinds of nudges have been tested on tourists already, and how successful they are.

Some Examples of System 1 Nudges in Tourism

Commitment Signalling: In an experiment by Baca-Motes et al. (2012), hotel guests were asked upon check-in to make a commitment to reusing their towels, and then to wear a publicly visible pin indicating this commitment. This increased towel reuse in the hotel by 40%.
Providing Feedback: Pereira-Doel et al. (2019) found that inserting an AI display in hotel showers showing the duration of running water during each shower was effective in reducing guests’ water usage.
Changing defaults: Kallbekken and Sælen (2013) reduced food waste at a hotel buffet by 20%, simply by making the plates smaller.

Some Examples of System 2 Nudges in Tourism

Increasing pleasure: Some scholars have argued that a hedonic context such as tourism requires more tangible benefits to achieve behaviour change. As a result, a few studies have experimented with nudges that are designed to increase pleasure for the tourist, while simultaneously promoting a desired behaviour. Dolnicar et al. (2019) found it much more effective to offer hotel guests a free drink if they opted out of room cleaning, than to appeal to their pro-environmental values by disclosing information about the environmental impact of room cleaning. Similarly, Dolnicar et al. (2020) managed to reduce plate waste by 34% at a seaside resort, by allowing families to collect stamps every time they did not generate plate waste at dinner. If they collected a stamp for every day of their stay, they could exchange the stamps for a small prize at check-out.

Although these kinds of nudges are ideal for a tourism context, given they increase the pleasure of the tourism experience and are also more likely to be approved of, they require more effort on the part of the tourism business. The tourism sector in many countries is dominated by SMEs, which often lack the resources required to implement nudges like this, even though they want to run a sustainable business. There is certainly a need for further research which works towards developing nudges which a) encourage behaviour that is beneficial for the planet and for host communities, b) are approved of by tourists, and c) are not burdensome for small tourism businesses to implement.

About the Author

Elizabeth Cooper is a PhD Fellow at Copenhagen Business School, within the Department of Management, Society and Communication. Her research aims to link the fields of behavioural science and tourism, by experimenting with strategies to ‘nudge’ cruise tourists into behaving in more sustainable ways, specifically in the ports of Greenland.

Photo by Elizeu Dias on Unsplash

Are sustainable and healthy diets always compatible? Needs for an emic-oriented cultural research on sustainable consumption

By Fumiko Kano Glückstad

◦ 6 min read ◦

It is widely acknowledged that a plant-based diet is healthier than an animal-based diet (Willett, et al. 2019). However, a group of Japanese researchers recently published a thought-provoking article demonstrating that a lower diet-related Greenhouse gas emission (GHGE) has generally resulted in an inadequate nutrient intake among Japanese adults (Sugimoto et al. 2020).

Their results seem to support the fact that the Japanese Government has excluded any dietary-related initiatives from its long-term national strategies concerning the targeted 80% reduction of greenhouse gas emissions by 2050. In other words, Japanese opinion leaders seem to challenge the generally accepted viewpoint of a direct positive correlation between a sustainable diet and a healthy diet, contradicting widely accepted European studies and initiatives (e.g. Sjörs et al. 2017). This apparent controversial observation motivated me to look into the historical development of meat consumption on a global scale. Most importantly, the recently published guiding principles by the Food and Agriculture Organization of the United Nations (FAO) and World Health Organization (WHO) in 2019 state that “Sustainable Healthy Diets” are a trade-off between the two dimensions: sustainability and healthiness of diets. Thus, countries should decide on such trade-offs in consideration with their situation and goals (FAO & WHO, 2019).

The following figure indicates such a trade-off situation for various geographical regions and it clearly shows that the meat consumption in Western countries is obviously higher than the rest of the world such as compared to e.g., Africa or Asia, although a substantial increase of meat consumption is observed in both China and Japan.

In particular, the main increases observed in China and Japan seem to be well-synchronized with the periods of their respective economic developments that simultaneously triggered their modernization (Westernization) process in their markets. However, the curves of Japanese and Chinese meat consumption also show a noticeable difference. Whereas the meat consumption in China has steeply increased since the 1980es, Japan seems to moderate its increase from the early 1990es and ahead, which is most likely explained by their respective economic developments. However, in this blog, I want to supplement these observations with some personal insights on what has happened in Japan during this period through my work experiences in the related industry.

Meat consumption in this blog refers to the average supply of meat across the population shown in this figure. Food supply is defined as food accessible for human consumption meaning the food remaining for human use after deduction of all non-food utilizations. *Source: Our World in Data https://ourworldindata.org/grapher/meat-supply-per-person*

During the Japanese bubble economy in the 1980es to the early 1990es, the Japanese middle class had increasingly wider opportunities to be exposed to the Western food culture due to their Westernization. This somewhat alarmed key Japanese health professionals, nutritionists, food experts and industries who considered a ”Western lifestyle and food culture” as a source of lifestyle-related chronic diseases e.g., diabetes 2 and cardiovascular issues, which would gradually impact Japanese consumers.

This subsequently triggered a countless number of initiatives aimed to nudge a wide range of the population towards a healthier diet. The initiatives were eventually formalized as a Health Promotion Act in 2002 and the Basic Law on “Shokuiku (food and nutrition education)” in 2005 by the Japanese government (MAFF, 2019).

*Source: Ministry of Agriculture Forestry and Fisheries. 2019. “A Guide to Shokuiku.” https://www.maff.go.jp/j/syokuiku/guide/pdf/00_en_guide.pdf*

The Shokuiku act has since become a comprehensive program targeting everyone from school children to the elderly, and its initiatives have involved a broad range of Japanese stakeholders, not only the central and local governments, health professionals and nutritionists but also food and restaurant businesses and their consumers.

The Shokuiku program has promoted the nutritional education from a holistic viewpoint and emphasized the importance of enjoying healthy meals from societal and cultural perspectives through various sensory food experiences. As a consumer researcher in the 1990es in one of Japan’s largest high-tech companies producing various kitchen appliances, I also personally participated in a variety of initiatives involving consumer organizations, health professionals, nutritionists and food and restaurant businesses to nudge consumers towards a healthy diet at that time.

In a European context, nudging consumers towards a sustainable and healthy diet usually implies the replacement of an animal-based diet with a plant-based diet with emphasis on ingredients. One major difference to the Japanese nudging initiatives is that the Shokuiku promotion has encouraged consumers to learn how to select “nutritionally balanced meals” in their daily life while enjoying variations in sensory food experiences. Consumers have many ways to achieve this by following the “Japanese food guide spinning top” that can be easily followed by a wide range of population groups, i.e. from school children to the elderly (see the below picture). The maintenance of a moderate meat consumption level observed from the Japanese curve in the above figure might be partially attributed to such ‘enjoyable’ Shokuiku initiatives (see Yoneda, 2019).

Japan has been able to moderate its overall meat consumption without specific promotions of plant-based diets also thanks to the traditional Japanese food culture that is originally rooted in a plant-rich diet. Thus, in a Japanese context, it is perceived possible to achieve a well-balanced diet while simultaneously enjoying variations in sensory food experiences, in other words, nudging a healthy diet can be perceived as an enjoyable experience. Interestingly, Kanemoto et al. (2019) recently reported that meat consumption only weakly explains the difference between high- and low food carbon footprints (FCF) among 60,000 Japanese households. This study ponders that Japanese should (also) consider restricting their consumption in other areas than meat consumption with a higher estimated FCF such as restaurant foods, confectionary and alcohol.

These observed trends indicate the importance of fully understanding social, cultural and dietary contexts in various countries and regions when researching on sustainable food consumption because food is inherently deeply rooted in the specific cultures. In other words, sustainable consumption studies should ideally shed more light on an emic approach addressing a specific sample of that region and discuss adaptability of such studies to countries outside of the specific region with due respect of the embedded cultural contexts.

About the Author:

Fumiko Kano Glückstad is Associate Professor of Cross-Cultural Cognition at the Copenhagen Business School. She works in the area of cross-cultural psychology and her recent project “iBeauty” funded by the third largest Japanese cosmetic company investigates associations between personal values, beauty and well-being in cross-cultural contexts. She previously worked as a consumer researcher and product concept designer of kitchen appliances at Panasonic Corporation, one of the largest Japanese electronics industry enterprises.

Negative Capability: Sustaining our discomfort towards a collectively responsible society

By Tali Padan

◦ 3 min read ◦

In my PhD studies, I work with a different type of sustainability. Not the sustainability of carbon footprints or systemic transformations but a sustainability of reflection. How we do keep ourselves in continuous reflexive dialogue (with ourselves and others) so that we don’t prematurely reach conceptual closure, stagnating in our own comfort?

Maybe comfort is sustainability’s biggest threat.

I say this considering the many years I’ve lived in the US, after a few formative years in Israel. Comfort is the reason my mom uses paper towels in lieu of regular towels in the kitchen, and the reason my dad cannot stand critics of Israel. Comfort is identity. It is plastic. It is the reason I throw away the whole moldy cream cheese instead of washing and separating. It is why it is easier not to participate in big group meetings. This blog post itself is a distraction from the discomfort that Chapter 5 of my PhD dissertation brings.

When this comfort is shaken up, there are many ways of trying to get there again – avoiding, rejecting, resisting – and in the case of global shakeups like the Covid pandemic, the talk about ‘getting back to normal’. But what if we were able to maintain a state of uncertainty, of not knowing what the solution is or how to get there. And rather than spending energy trying, we settle into the unsettlement, letting it stir up the hurricane of trapped emotions and meeting visitors we thought we buried years ago? This is what the poet John Keats called ‘negative capability’, the ability to be in uncertainties, mysteries and doubts ‘without any irritable reaching after fact & reason’.

What if that ‘irritable reaching’ was in reality counterproductive towards our individual and therefore collective growth?

Here comes the ‘don’t get me wrong’ section. I am not suggesting we linger in the dissonance until the glaciers drown us. Nor that we use this approach as an excuse not to try, or ironically – get so comfortable with the discomfort that we disengage from any responsibility. But that we let each shake-up sufficiently run its course so that our demons can be faced, both individually and collectively.

In the elective course that I teach for third year Bachelor’s students, this is what we practice. First, and maybe most importantly, we sit in a circle. The circle grounds us in our fundamental equality and triggers us to explore our many inequalities. The class engages in a series of activities dealing with democracy, using an Israeli democracy education method called ‘Betzavta’ (Hebrew for ‘togetherness’). Betzavta, developed in the Adam Institute in Israel, integrates and emphasizes dilemmas and conflicts in order to experientially learn how to live with others in a democratic society. Each activity in the method includes reflecting on the result of the activity but also on the process. By shifting the reflection towards process, students are provoked to examine their own dynamics. Subconscious assumptions and habits can then be revealed and questioned.

It is by no means an easy process. As one student succinctly put it in the final evaluation:

“I thought that the whole thing was very good, good questions, good topics, good dialogue. But man, did it suck. It was horrible actually. But very cool.”

The ‘horrible’ part that this student is referring to could range from the discomfort of conflicting opinions to the tension of judgement, and the palpable, heavy silence that can be felt when students hold back from sharing these tensions. The good part, as I perceive it from the facilitator’s chair, is that these tensions are exposed, felt and explored, and subsequently used towards a reflexive type of learning. Lingering in these tensions cultivates our negative capability and is the doorway towards this learning.

The class represents a miniature society. When going through such an experience, students start to naturally move away from an exaggerated individuality and become more considerate towards the collective. By exposing and sharing the more difficult emotions we usually avoid – anger, irritation, overwhelm, anxiety, boredom – students get the opportunity to practice living together more genuinely, modeling the society most of us wish to see in the world. Lingering in these emotions requires being negatively capable because the habit is to seek comfort, stability, a pleasant state of mind. In this way, the ‘negative’ in negative capability does not refer to what is undesirable but rather an absence, the absence of habit, identity, or ideology. It means having the ability to stay in uncertainty without resorting to previous knowledge structures or beliefs. It’s in the letting go, entering the vulnerable home of the unknown, where thought is not there to fragment and give birth to anxiety, that we may connect with each other more genuinely. This, in my view, is a sustainable practice that could benefit us individually and therefore collectively.

About the Author

Tali Padan is currently in the final year of her PhD at CBS, writing about experiential learning techniques in the business classroom. As a facilitator and researcher, Tali is interested in how purposeful experiences of dissonance can contribute to learning. She is from Israel/USA and has lived in Denmark for ten years.

Why we should not call for experts instead of experiments

By Jan Michael Bauer

◦ 3 min read ◦

The recent elections in Germany turned out as the historic loss for conservatives that pollsters have predicted a few weeks before. Responding to the declining poll numbers, the conservative party presented a “team for the future” consisting of several field experts that should help the candidate addressing the big challenges of the country. Their slogan was „Experts instead of experiments“. The message was clear: we know how to solve these issues and voting for another party would be an experiment and therefore risky. While this might appeal to a conservative base, I think this slogan sends a wrong if not hypocritical message.

Framing an experiment as something uncertain and dangerous that should be avoided taints one of sciences most successful methods and obscures the undeniable level of uncertainty associated with policy decisions.

Even after acknowledging the turbulent times during Merkel’s legacy, remarkably little was done to address the challenges of the future. While some inaction might be attributed to a lack of courage or lobbying by special interests, it certainly constitutes the lack of obvious and simple solutions for the many problems the country is facing.

The challenges we face are new and unpredicted in magnitude. While few would disagree with the need for action, there is disagreement about what needs to be done. Experts argue with each other, often struggle to persuade their colleagues, and remain unconvinced by the evidence that substantiates the oppositions claims. Fierce debates about the right course of action often overshadow a sad truth that in many cases no one is and really shouldn’t be sure that the proposed path will be the most successful one. Even more disheartening might be that even after the implementation of a policy, we often have a hard time qualifying if the intervention did more good than harm or quantifying these benefits.

A fundamental problem, particularly economists try to resolve through (quasi-) experimental research methods to understand how a specific policy intervention works. Broadly speaking, they become experts because they do experiments. Pioneers in the study of causal relationships were recently awarded the Nobel Price. Among them David Card who is famous for a study on the effects of a higher minimum wage on employment exploiting a so-called natural experiment.

Experimentation can help us to find out if our ideas and theories work in practice. They should increase our confidence in the people applying them rather than creating a fear of uncertainty.

Our knowledge that COVID vaccines are effective mostly relies on the result of randomized experimental trials. An approach increasingly used to answer questions in the social sciences. For instance, we don’t know how people will respond to universal basic income, which is why a three-year experimental study is currently on its way in Germany.

Pharmaceutical trials are also designed to show that potential drugs have no sever side-effects. While the necessity to ensure the safety of a drug is quite intuitive, the unintended consequences of non-medical products and services are less straight forward. For instance, social media has been suspected to inadvertently contribute to political polarization and erode democratic processes. While many of these claims are based on anecdotes, recent experimental studies from researchers outside Facebook have added hard evidence to the debate and conclude:

Our results leave little doubt that Facebook provides large benefits for its users [but also] make clear that the downsides are real. We find that four weeks without Facebook improves subjective well-being and substantially reduces post-experiment demand, suggesting that forces such as addiction and projection bias may cause people to use Facebook [..] it also makes them less polarized by at least some measures, consistent with the concern that social media have played some role in the recent rise of polarization in the United States.
– Allcott, Hunt, Luca Braghieri, Sarah Eichmeyer, and Matthew Gentzkow. 2020. “The Welfare Effects of Social Media.” American Economic Review, 110 (3): 629-76.

There are obvious differences between vaccines and a social media platform, and probably nobody would suggest that Facebook should have undergone a randomized safety study in the mid-2000s before going public. Such products and services develop over time and can be used in very different ways. However, despite these differences there is an open question about the potential side-effects and the burden of proof. To ensure a healthy society, it might be worth considering that at least with a reasonable initial suspicion of harm, also non-medical companies should be obligated to proof their products’ safety using a suitable experimental design.

There will remain many problems where experiments are unfeasible, and, as seen with the development of Facebook, even the results of the best experiment today might not be a valid description of tomorrow in an increasingly complex and dynamic world. Such a world, however, should also humble us and our experts but foster an acknowledgement that there are many questions for which we don’t know the answer. Hence, we should make use of the best scientific methods available to reduce this uncertainty, which ultimately means that we need more experiments and not less.

About the Author

Jan Michael Bauer is Associate Professor at Copenhagen Business School and part of the Consumer & Behavioural Insights Group at CBS Sustainability. His research interests are in the fields of sustainability, consumer behavior and decision-making.

Photo by Scott Webb on Unsplash

White People and the Animals they Love

Book Review of Saving Endangered Species: Lessons in Wildlife Conservation from Indianapolis Prize Winners

By Lisa Ann Richey

◦ 6 min read ◦

This book review has first been published by Conservation and Society and can be also found at CBDS blog.

According to the press website, Saving Endangered Species has wide and diverse aims: ‘to win new recruits, inspire biologists and conservationists already in the field, and illustrate the profession’s fundamental scientific tenets through wildlife champions’ own exciting narratives.’ Overall the purpose of the book is to present a moral imperative for a conservationist approach to saving nature and to do this through a collection of personal experiences from great conservationists about their love of nature and experiences from the day-to-day workings of conservation. Seven of the book’s contributors are winners of the Indianapolis Prize ‘the world’s leading award for animal conservation’ (p. 12) and one that prioritizes the inclusion of people as a ‘primary factor in the equation’ of conservation, and high levels of exposure in celebration of these ‘heroes and role models’ (p. 13).

The book is stunning. It is an aesthetically beautiful edited volume from its entrancing animal photographs, skilled illustrations and colloquial snapshots of its famous contributors. And yet, for all its beauty, this book could have been titled, ‘White People and the Animals they Love.’

I start with my fundamental critique because for some readers, this will be all they need to hear to check this book off their ‘must read’ list. These readers, however, will be hard pressed to find other works of conservation biography that aren’t also easily critiqued for their class, racial, gender, and geographical elitism.

Also, a disclaimer, I am a social scientist who works in some of the policy spaces, ‘partnership’ imaginaries of business and helping, and geographical areas covered in this book. Thus, I am among the ‘to be inspired’ of the intended audience for this book. Additionally, the introduction, written by Dr. Robert W. Shumaker (evolutionary biologist, president and CEO of the Indianapolis Zoo) calls for ‘a more integrative approach in which the centrality of humans is recognized in the conservation agenda’ (p. 6). Thus, a review by a scholar of humans might be reasonably appropriate.

In spite of the fact that the index does not include the term ‘celebrity,’ the book epitomizes what has come to be called ‘celebrity environmentalism’ (see Abidin, et. al 2020). The practice of scientists, film stars and social media influencers among others, who ‘enjoy public recognition, publicly support environmental causes, and benefits from their sustained public appearances’ as celebrity environmentalism may be a way of bringing new resources to conservation.

The celebritized approach to conservation is clear from the Introduction’s start. While the reader might expect the star of this chapter to be the American Bison, named the official mammal of the United States in 2016, and depicted as a steadfast and grandiose being in the illustration that precedes the text, it is not. The star is the celebrity conservationist William T. Hornaday who initiated the first-ever zoo-based conservation effort as a result of his initial desire to provide a live bison model for better taxidermy (p.2). Thus, the scientific model for which the book collects a series of testimonies, is linked to the efforts of Hornaday. He was the director of the Bronx Zoo in 1906 when Ota Benga, a Mbuti man from Congo, was displayed in a cage in the monkey house. Hornaday wrote to the New York city mayor that ’When the history of the Zoological Park is written, this incident will form its most amusing passage.’

Many people at that time, such as the Black clergyman Rev. James H. Gordon, were not amused. Many readers today will question the unambiguous celebration of these violent and dehumanizing roots of a movement intended to provide a moral approach to saving nature.

Distinctions are signaled between the scientific authors and the celebrity environmentalists through engraving the masthead of every other page with a ‘Dr.’ before the scientists, with other names presented title-less. Yet, these contributors are all performing the limited scripts of celebrity environmentalism: notably contributions enact specific tropes outlined by Abidin and her colleagues. We see contributions from the ‘Ambassador’ trope of high-profile performers who are patrons of NGOs and foundations, but whose personal commitment varies between superficial co-branding and long-term engagement. Quite prevalent is the ‘White Savior’ trope in which ‘wild places’ need to be saved from ‘locals’ through the actions of white people. The book also highlights the ‘Activist Intellectual’ trope promoting cerebral and scientific reasons to support conservation, that then become celebritized through a focus on funding, media and elite networking. Finally, the book’s promotional writing enacts the trope of the environmental ‘Entrepreneur’ where conservation is meant to provide a good investment for business-minded people.

The book opens with a long vignette from Harrison Ford at the 2018 Gala celebration referring to his co-contributors and others like them: ‘You can call them researchers or scientists or conservationists. But let’s call them what they really are: These are heroes. Real heroes.’ (p. 17). However, as this book shows, the heroic narrative structure makes forging alliances and political solidarity across lines of class, race, cultures and politics quite challenging. Heroes stand above others, they are exceptional. And, as such, conservation through heroism is unsatisfactory, if not oxymoronic.

Conservation and the environmental politics that can sustain life on our planet call for less singularity, fewer stories of individuals excelling over other people and nature, and more connectedness, cooperation and coexistence.

The introduction tells us that ‘these are the voices of the greatest conservationists of our time’ (p. 17). I have no reason to doubt that these are their voices and that they are great conservationists, whatever criteria make up ‘greatness’. The stories are full of passion and genuine concern for conservation, so there is no doubt that these heroes are acting from noble intentions. However, the heroic hubris prevents the reflection over either why chickens when pushed off a roof don’t ‘progress well in flight’ (p. 21) or why ‘with no prior thought’ wildlife conservation should be best achieved through ‘a big cash award’ and an ‘exciting and glamourous event’ (p. 305).

With some notable exceptions, this book presents the same old stories of great men who just happen to have no reproductive obligations (with the predictable exception of the female scientist), so they can go singularly or with the support of a doting wife into long-term relationships with animals.

These men also have friends with lots of money and political clout, and the documentation of elite networking practices that comes through in the chapters actually works counter to a singular hero at the helm of conservation. Finally, these conservation heroes rely heavily on a competent staff of Black and Brown people who can put lofty ideals into practice, while not usurping the limelight from celebrity environmentalists.

Some of the more ‘Activist Intellectual’ celebrity environmentalists present compelling arguments in lively texts around global warming and the contentious politics of saving the polar bears. Many of them take the reader through a combination of wildlife daily habits, international fundraising, and management of research and training projects. These are narrated as a partial life-history of a single ‘hero,’ and while there are nods to ‘local supporters,’ ‘scouts’ and collaborations between ‘enthusiastic’ local staff and international volunteers, this book tells a dangerous single story.

It’s time to remind ourselves and our peers that the heroic narrative of celebrity conservation may be useful for raising funds from businesses and for garnering the attention of bored bureaucrats, but it has dangerous political consequences.

A close reading of the text finds examples such as four ‘community game scouts,’ the ‘local African supporters’ in Kabara, and the ‘young Samburu warrior’ who was ‘walking in the bush’ with David Quammen, a writer from National Geographic (p.80). Samburu people have proper names, no less notable than people from Cincinnati, and the young man was not working as a warrior when assisting on a conservation project. These people are being rendered mundane through the repetitive text of the white savior narrative. They are being de-humanized as they remain in the background of the African or Asian ‘habitat’ for animals. The heroic narrative is based on an ongoing history of inequality between races, classes, genders and cultures.

The afterword, written by the CEO of the Indianapolis Zoological Society (2002-2019) reads like advertising copy for ‘Western Civilization’ complete with God, Guns and Gold. It is a colonial vision of men like Paul Erlich in which the ‘dangers of unchecked human population’ are called out as problems while fossil fuel addiction, or all those flights to the Galas celebrating conservation heroes, are left unmentioned. The ‘Danger of a Single Story’ by Chimamanda Adichie taught an important lesson in 2009: ’The single story creates stereotypes, and the problem with stereotypes is not that they are untrue, but that they are incomplete.’ This is a beautiful book in its intentions and its aesthetics; the stories are often compelling and transport us into the lives of cranes and elephants and into some of the world’s most notable conservation initiatives. Yet, despite its intentions, the people are missing from this heroic script of celebrity environmentalism.

Perhaps these people are left-out by design. Dr. George B. Schaller writes clearly: ’My account here demonstrates that conservation is not part of development’ (p. 78). But, conservation is part of development. It is impossible to define conservation otherwise (Adams 2004). Both conservation and development are part of the holistic process of living sustainably on our planet. This book is intended to celebrate ’people as a primary factor in conservation.’ We do learn a lot about a particular sub-group of privileged people, their psychology and insecurities, their dreams and aspirations, about networks of elites across the globe who happen to have farms, foundations or PhD scholarships to spare. But we learn far less about the non-celebrity people in the lives of animals. Surely a global conservation movement that manifests the holistic visions and ’the connectedness of all living things’ (p. 119) that many of these contributions also embrace, needs less heroism and single stories and more solidarity, comradery and complexity.

About the Author

Lisa Ann Richey is Professor of Globalization at the Copenhagen Business School. She works in the areas of international aid and humanitarian politics, the aid business and commodification of causes. She is the principal investigator on the Commodifying Compassion research project. https://www.lisaannrichey.com

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Are we asking the wrong questions in corporate social responsibility (CSR) research?

By Rikke Rønholt Albertsen

◦ 3 min read ◦

The sustainability contributions of business are under increased scrutiny in society. Observations of greenwashing, blue-washing, corporate hypocrisy, and decoupling suggest the existence of an intentional or unintentional gap between espoused CSR strategies and actual sustainability outcomes at the societal level. In other words, there seems to be more “talking” than “walking”.

This has inspired a growing concern in parts of the CSR research community that maybe we have been asking the wrong questions. Is it possible that in some ways we are contributing to this gap between strategy and impact?

Next year, an entire subtheme of the annual European Group for Organisational Studies (EGOS) conference will be dedicated to “Rethinking the Impact and Performance Implications of CSR”. This subtheme will address the tendency in CSR research to focus on outcomes at the organisational level without analysing impacts at the societal level.

There are valid reasons for limiting the scope of CSR research in this way: from an organisational performance perspective, many of the traditional success criteria for CSR policies—such as strengthening legitimacy, market position, and employee satisfaction—do not require data to be gathered on sustainability impact from a societal perspective.

However, the urgency and magnitude of the current global crisis related to climate, biodiversity, and social inequality fuels the expectation that corporations should acknowledge their role in creating these crises and take decisive action to be part of the solution. From this perspective, one would expect CSR research to provide knowledge of how, when, and why CSR policies and practices truly contribute to solving sustainability challenges. Yet, as a review of current CSR literature shows, this is rarely the case [1].

So what constrains CSR researchers from addressing this impact gap? In the following, I will highlight two interrelated mechanisms that have emerged from my research.

1) Sustainability impact is non-linear, systemic, and complex.

The problem with measuring sustainability impact is that it does not conform to conventional systems of measurement and reporting. Company CSR reports primarily provide key performance indicators linked to resource use per unit of production or list company policies and protocols to ensure compliance with various sustainability standards. In general, companies tend to (self) report on the successful implementation of their (self-imposed) CSR strategy, which happens to align with existing business objectives. However, as dryly noted by former environmental minister and EU commissioner Connie Hedegaard: the need for CO2 reductions is not relative; it is absolute! The melting Arctic poles do not really care that a company has made an effort to reduce its relative emissions if the net result is still more CO2 [2].

The negative impact on ecosystems is subject to irreversible tipping points where effects compound and accelerate. Thus, the societal impact of a sustainability policy or protocol cannot merely be assessed at the organizational level. It must be traced up and down the value chain and checked for unintended systemic consequences and hidden noncompliance [3]. Think of ineffective emission off-set schemes or families impoverished by bans on child labour. Ultimately, being “less bad” does not necessarily amount to being good.

2) Researchers do not have the necessary information.

Analysing the societal impact of corporate CSR policies and practices is a highly resource intensive task, which requires an entirely different set of research skills and data access than traditional organisational research. Instead, researchers most often opt to evaluate sustainability performance through estimations, perceptions, and narratives offered by company staff in surveys and interviews [1]. This data is context specific and prone to subjective biases, making it difficult to draw objective conclusions about societal impact.

Consequently, because there is so little existing knowledge of the link between CSR initiatives and societal impact, the CSR contribution of corporations is primarily assessed based on compliance with reporting standards and commercial rating initiatives such as the Dow Jones Sustainability Index [4]. This, for lack of better options, becomes the go-to objective indicator of CSR performance used by CSR researchers. Through this self-fulfilling circular logic, these indicators are used to identify CSR high performers for research on best practice. CSR research thus potentially perpetuates the perception of what successful CSR policies and practices look like—all without examining the societal impact of these practices.

Is this a problem?

Just as corporations increasingly realise that addressing CSR issues is no longer optional, we as CSR researchers may need to move beyond asking how, when, and why corporations engage with sustainability and begin asking how, when, and why corporations contribute to sustainability. If we do not, we risk losing our relevance when corporations look to academia for guidance on how to design and implement CSR strategies based on maximum impact rather than just maximum compliance and minimal risk.

We are challenged to expand our field of enquiry and be innovative when assessing how the observed means ultimately align with desired ends. This will require forging research alliances with new knowledge fields and establishing relationships with new groups of informants beyond company employees. The first step, however, is to rethink the questions we ask.

About the Author

Rikke Rønholt Albertsen is a PhD Fellow at the Department of Management, Society and Communication at Copenhagen Business School and a member of the multidisciplinary CBS Sustainability Centre. Her research focus is on exploring and understanding gaps between the espoused sustainability objectives of corporations, and their actual contribution to sustainability. She has a background in consulting at Implement Consulting Group and in sustainability advocacy as co-founder of Global goals World Cup.

LinkedIn Profile.

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Why transparency may not lead straight to CSR paradise

By Dennis Schoeneborn

◦ 2 min read ◦

Business firms worldwide are increasingly engaging in practices of corporate social responsibility (CSR), a trend strongly driven also by the agenda of the UN Sustainable Development Goals. However, when doing CSR, firms tend to face recurrent suspicions by the media, NGOs, and other civil society actors that they would not put the money where their mouth is; in other words, that they would adopt CSR practices only ceremonially rather than substantially (a.k.a. “greenwashing”).

High transparency demands are commonly seen as the main ‘remedy’ that would ‘cure’ firms from mere ceremonial adoption and would drive them towards substantive adoption of CSR practices. However, in recent years we can find increasing evidence that high transparency demands do not always lead straight to CSR paradise. In a Financial Times article from 2020, Jason Mitchell raised the provocative question: Is greenwashing a necessary evil? The author argues that firms often require some leeway to experiment with CSR and sustainability practices to begin with, and without such leeway CSR efforts tend to get cut off too early by too high transparency demands and greenwashing accusations. After all, some decoupling between talk and action can also be due to a time lag between aspirations and the actual implementation of CSR practices within a firm (see here).

In the same context, Patrick Haack (HEC Lausanne), Dirk Martignoni (University of Lugano), and Dennis Schoeneborn (Copenhagen Business School) have recently published an article in the Academy of Management Review that draws on a computer-based simulation to study the dynamic interplay between transparency demands and CSR practice adoptions in a field or industry. By drawing on a probabilistic Markov chain model, the authors demonstrate that under certain conditions a regime of opacity followed by transparency (i.e. intially low and later high transparency demands) “outperforms” a regime of enduring transparency (i.e. high transparency demands right from the start) with regards to maximizing the share of firms in an industry that would adopt CSR practices in a substantive way. But what are such boundary conditions?

In the article, the authors explain that the optimality of the “opacity followed by transparency” regime tends to apply only for practices that are characterized by low adoption rates (i.e. those costly to implement) as well as by low abandonment rates (i.e. once adopted firms tend to stick with the practice, also since they may face public backlash if they abandon a practice after adoption). Interestingly, these are exactly the kinds of conditions that characterize CSR as a practice area.

What to learn from all this? NGOs and other civil society actors can benefit, in the long run, from cutting business firms some slack (i.e. putting rather low transparency demands onto firms), at least in the initial stages of CSR adoption processes. Instead, societal actors should then try to increase transparency demands at later stages in the adoption process to push firms further towards substantive adoption.

Haack et al. (2021) explain this process to work due to what they call a “bait-and-switch” mechanism of CSR practice adoption. Initially lower transparency demands allow for larger numbers of firms to adopt practices, even if they do so for ceremonial reasons to begin with. Importantly, when transparency demands are then increased over time, a number of firms tend to switch from ceremonial towards substantial adoption, thus leading eventually to the desirable outcome (from a societal viewpoint) of rather high rates of substantive CSR adopters in an industry.

About the author

Dennis Schoeneborn is a Professor of Communication, Organization and CSR at Copenhagen Business School and a Visiting Professor of Organization Studies at Leuphana University of Lüneburg. In his research, he focuses on organization theory, organizational communication, digital media and communication, corporate social responsibility and sustainability, as well as new forms of organizing.

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The fear of becoming the hotspot of infectious diseases: Who is concerned and why?

By Fumiko Kano Glückstad

◦ 4 min read ◦

Denmark is opening the borders for tourists from our neighboring countries in Northern Europe after a long period of lock-down restrictions. This is good news for the Danish tourism having suffered with substantial revenue losses as the consequence of the Covid-19 crisis. Whereas the European countries are optimistic about the opening of their societies along with the progress of their vaccination programs, Japan in the Far East is tightening its border entry restrictions due to the latest state of emergency declarations.

Recent Japanese opinion surveys clearly indicate that Japanese are concerned about hosting the Olympic Games in Tokyo expected to kick-off in just two months. At a glance, the adverse reactions by the Japanese population seem to be triggered by the current state of emergency in addition to the delay of implementing a nation-wide vaccination program.

However, such attitudes were already indicated in a cross-cultural study conducted for the period 10 – 24 July 2020 addressing residents in the following four countries: Denmark (n=1,005), Japan (n=1,091), Italy (n=1,005) and China (n=1,013). In this blog, I will present some fundamental cultural differences observed between the Europeans and the Far East Asians investigated in this study.

In an article recently published in Frontiers in Psychology by Glückstad et al., 2021, it is reported that Japanese are generally very concerned about their local community becoming a hotspot of infectious diseases. This study asked respondents how much they agree or disagree (1: Strongly disagree — 7: Strongly agree) to the statement:

“It is concerning that our community will be crowded by foreign tourists and will potentially become a hotspot of infectious diseases”

as well as other statements explaining several factors, amongst others:

their intentions of pleasure seeking (enjoying cafés and restaurants, travelling abroad as soon as possible and similar enjoyments)
their risk perception (worried about becoming infected, getting ill and infecting others)
their risk avoidance (avoiding larger groups, public transportation and travelling to destinations with high reproduction, selecting destinations with hygiene and less crowded destinations)
their intention to behave responsible (keeping social distance, cleaning up public spaces, using disinfectants before and after shopping)
their expectation for the society to behave responsibly (tourists visiting their local community should behave properly, local businesses should make their community clean and safe, individuals should contribute to minimize the risk of spreading, importance for their local businesses to have inbound tourism)
their attitudes to mask wearing and hygiene (wear mask, feel safe if businesses indicate sanitary standards and if staffs wear mask)

In our recent Frontiers article, we conducted a Bayesian Network analysis (see Fig. 1) which indicates that, in Denmark and Italy, respondents who expressed higher intentions for pleasure seeking behaviors have higher probabilities of being less concerned about their local community becoming a hotspot of infectious diseases, and vice versa.

This European trend is rational in a way that the motivational drivers to seek hedonistic experiences are conflicting with the conservative risk avoidance attitudes and behaviors. However, in Japan, disregarding the level of intentions for pleasure seeking behaviors, the level of concern about their community becoming a hotspot of infectious diseases stays around 5.5 (at the level between ‘somewhat agree’ and ‘agree’). The Chinese reacted rather similar to the Japanese respondents, however, their level of concern stays around 4.6-4.8 (at the level between ‘neutral’ and ‘somewhat agree’).

Figure 1: Total effect of factors X on the target variable Y (concern about one’s local community becoming a hotspot of an infectious disease)

*Source: modified from (Glückstad et al. 2021)*

The results of our studies clearly highlight an important cultural difference. That is, Japanese who seek hedonistic experiences expressed their concern about their local community becoming a hotspot of infectious diseases caused by inbound tourism, whereas Danes and Italians who seek hedonistic experiences were less concerned about this issue, as for the Summer 2020. This difference could be explained by the so-called “independent self-schema” typically held by Westerns (Europeans) and the “interdependent self-schema” typically held by Far East Asians.

In other words, Danes and Italians who are typically based on an “independent self-schema” would realize the “positivity of the personal self” through their pleasure-seeking behaviors. In such a scenario, they would be less concerned about their local community becoming a hotspot of infectious diseases. On the other hand, Japanese who are typically based on an “interdependent self-schema” would consider a balance among different selves in their in-group relationship important and prioritize the protection of their in-group communities. The survey results presented in Glückstad et al. (2021) and the adverse reaction by Japanese to the recent Japanese opinion surveys about being host of the Olympic Games in Tokyo are good examples of such protective attitudes identified in the society based on the interdependent self-schema.

About the Author

Fumiko Kano Glückstad (FKG) is Associate Professor of Cross-Cultural Cognition at the Copenhagen Business School. Her main research interests are currently centered on cross-cultural psychology, cognitive psychology, consumer psychology and data sciences. Her research focuses on data-driven consumer analyses centers on consumers’ value priorities in life and other factors that affect their attitudes and behaviors. In particular, FKG has extensive experience in consumer research on health, dietary, environment and personal care products from Far East industries.

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Start me up – helping citizen engagement become the hot new kid on the block

By Isabel Fróes

◦ 4 min read ◦

In recent years, through experience and discussions in various projects and workshops dealing with urban development, this key question keeps returning:

How to best promote citizen engagement?

While citizen engagement is a large topic within urban development, so are entrepreneurship and grassroots movements. How do we perceive these various terms? In which ways do these forms of organization converge, where do they diverge? More importantly, could we change the civic engagement rates if this work would be perceived as steps towards further opportunity (gaining) instead of ‘volunteer work’ (giving)?

A known challenge within citizen engagement deals with age groups. It is not difficult to engage young children (up to 12 years old) and older citizens to take part in local actions, however it becomes a struggle to engage youth and young adults as they see little return in value as results tend to be intangible or unclear. Within this group, perception plays a big role in how ideas are sold (and consumed), so it might be time to possibly bring the concepts of civic engagement and entrepreneurship closer together. But where do we start?

A first point to consider is how these key concepts might be popularly understood. When mentioning citizen engagement, images of volunteers coming together to discuss, collaborate, work and vote on ideas come to mind. When talking about entrepreneurship, notions of highly driven visionaries or million dollar companies emerge.

Citizen engagement and entrepreneurship are rarely seen as equals. However, in both cases you find similarities. It is not uncommon for both groups to engage in a large amount of unpaid labour, long days, hard work and convincing people to join you and (most probably) gathering funds to execute whatever dream you may have.

Literature covering the concepts of social entrepreneurship or community-based entrepreneurship highlights distinct formats of social entrepreneurship, both of which are top-down. In the case of grassroots entrepreneurship initiatives, articles highlight movements that emerge from “acute socio-economic, institutional, and financial resource constraints, as well as out of local knowledge and a commitment to community”, such as the one seen recently during the Covid-19 pandemic (see blogpost). It is not necessarily about creating something new, but instead, something that works for the case in focus.

In these settings, co-creation has received a deserved attention as a method, and it has proven to be a valuable tool as it allows for diverse stakeholders to come together to develop and carry out ideas, creating shared agency. However, before that first co-creation session lies the true challenge in both user engagement and entrepreneurship: Creating momentum before the momentum, to make one person (or a few) motivated ‘out of thin air’.

Therefore, a second point to consider is the top-down setup of projects, inviting citizens to engage with a specific topic or local pre-defined issue. Although project results might impact locals’ everyday, the personal gain might be too dissolved into the hours spent, thus people refraining from engaging.

In order to challenge the current top-down scenario, the perception and format of these activities could be transformed to facilitating processes to let locals themselves suggest and carry the types of projects that interest them, seeing a clearer link to ‘what’s in it for me’. For unpaid efforts, the pay-off has to be visible and tangible.

Furthermore, associations, municipalities and other public institutions need to create means to replicate successful bottom-up initiatives. Some of these initiatives could then be linked to local businesses and related opportunities.

From a service design perspective, a way to bring this information into people’s households could be to use the existing information channels popular amongst the local community to allow for an initial knowledge entry point. For instance, as citizens receive a public waste sorting information sheet, one could attach a ‘waste project opportunity’ sheet. This initial touchpoint could be a it’s your turn blueprint, a step-by-step guide showing what to do to bring your ideas out into the world. So, a project idea invitation presented as an opportunity at your fingertips. The ‘hot themes’ in the current market should be highlighted while also offering inspirational examples. Programmes to support these initiatives should be in place, facilitating the citizen engagement startup process as a possible social ladder. Such a setup could transform current structures, making cities and citizens, not venture capitalists, the true cradle for entrepreneurship.

This blog was inspired by a recent participation in a workshop focusing on urban development, discussing visions for green and social meeting places in urban residential areas. During the discussion, a number of key questions were raised concerning how to best promote citizen engagement. The workshop was organized by Copenhagen University and VIVAPLAN, with presentations from VIVAPLAN, Urbanplanen Partnerskab, C40, KAB and Copenhagen Municipality. The visions discussed during the workshop are to feed into policy recommendations for sustainable and inclusive developments in Denmark and Sweden.

References

V. Ratten and I. M. Welpe, “Special issue: Community-based, social and societal entrepreneurship,” Entrepreneurship and Regional Development.

M. Wierenga, “Uncovering the scaling of innovations developed by grassroots entrepreneurs in low-income settings,” Entrep. Reg. Dev.

S. Sarkar, “Grassroots entrepreneurs and social change at the bottom of the pyramid: the role of bricolage,” Entrep. Reg. Dev.

About the Author

Isabel Fróes is a postdoc at MSC Department at Copenhagen Business School working in three EU projects (Cities-4-People, iPRODUCE and BECOOP). Isabel also has wide industry experience and has worked both as a user researcher and service design consultant for various companies in Denmark and internationally. For more detail please see her Linkedin profile.

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Mapping unchartered territory: Ecuador’s journey to sustainable palm oil

By Mathilde Birn, Sanne Qvarfordh, & Dr. Kristjan Jespersen

◦ 3 min read ◦

Sustainability certifications have become a widely used mechanism to signal to consumers that a product was ostensibly produced sustainably. Nevertheless, such certifications typically fail to scale beyond at most a fifth of global production. Within the palm oil sector, widely known as a major deforestation driver, the Roundtable for Sustainable Palm Oil (RSPO)’s Jurisdictional Approach is one of a growing number of examples of upscaling strategies. Under the Jurisdictional Approach, all value-chain actors within a province or even an entire country would be certified simultaneously. Ecuador is piloting the initiative at the national scale and is currently developing a national commitment.

The research is informed by 21 interviews with a variety of actors in the Ecuadorian palm oil sector. After qualitatively coding these interviews and looking for common patterns, we identified four main motivations behind Ecuadorian interest in jurisdictional palm oil certification. First, interviewees reported a concern that Ecuador risked losing market access due to sustainability-related import restrictions and consumer preferences in certain markets. Second, 90% of Ecuador’s palm oil producers are smallholders, whose resource limitations make it difficult to achieve RSPO certification on their own. Under the Jurisdictional Approach, smallholders would be grouped together, allowing them to pool resources and share costs. Third, the Jurisdictional Approach facilitates governmental sponsorship for smallholder capacity building. Fourth, previous experience and institution-building around sustainability in general and anti-deforestation in particular produced forward momentum on the part of the civil society and the Ecuadorian government that has led to an institutional infrastructure favourable to ideas like the Jurisdictional Approach.

In the most optimistic scenario, the Ecuadorian government’s commitment to the Jurisdictional Approach, strengthened by multi-stakeholder support, could encourage more sustainable production practices. However, we also identified certain risks associated with the implementation of the initiative. These risks especially significant given the Jurisdictional Approach’s relative novelty. As one interviewee put it: “we have been flying the plane while we’re building the plane”.

We have identified six key risks to Ecuador’s implementation of the RSPO Jurisdictional Approach and paired them with mitigation recommendations. This list is certainly not exhaustive and ought to be further assessed and developed by local stakeholders equipped with relevant expertise.

The Jurisdictional Approach affects several different stakeholder groups with diverse interests that must be actively engaged in the process to achieve success. To this end, efforts should be made to include representatives of stakeholders that are currently missing (or insufficiently represented) in the governance structure of the RSPO Jurisdictional Approach in Ecuador. These stakeholders include academia (which was involved in the beginning of the process but no longer is), domestic civil society organizations, local communities (including Afro-Ecuadorian and indigenous peoples), local governments, and representatives of the global palm oil industry.

About the Authors

Mathilde Birn graduated from CBS with a BSc and MSc degree in International Business and Politics. Academically, her main interest is within the field of sustainable development and the impact of stakeholder dynamics on such development, with a focus on emerging economies.

Sanne Qvarfordh graduated from CBS with a BSc. and a MSc. degree in International Business and Politics. Her main academic interest is sustainable development in emerging economies, with a focus on multi-stakeholder initiatives in Latin America.

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Unaccounted Risk: The Case of Sulfur Hexafluoride (SF6) in Offshore Wind Energy

By Esben Holst & Dr. Kristjan Jespersen

◦ 5 min read ◦

Carbon accounting provides a science-based measurement of greenhouse gas (GHG) emissions, achieving greater accountability of companies’ emissions causing global warming. GHGs are reported in CO2 equivalents (CO2e), meaning GHGs with widely different chemical qualities and environmental impact can be presented in a single understandable metric. However, the underlying methodology is debatable. This article questions whether the CO2e of Sulfur Hexafluoride (SF6) is misreported.

What is SF₆ and why is it a hurdle for a green energy transition?

SF6 is used as an insulator in a wide variety of electrical equipment, mainly to prevent fires in incidents of short circuits. It is found in transformers inside windmills, offshore and onshore substations, and in power cables.

(Illustration to the left shows a sideview of a windmill turbine – Source: CAT-Engines. Right: an offshore wind energy system – Source: Nordsee One GmbH)

SF6 is a synthetic man-made GHG and cannot be reabsorbed naturally like CO2, meaning once emitted, it does irreversible damage. Most GHGs remain in the atmosphere around 100 years – SF6 remains for 3,200 years. These numbers are given by the Greenhouse Gas Protocol (GGP) based on calculations by the Intergovernmental Panel on Climate Change (IPCC).

The IPCC’s metric Global Warming Potential (GWP), reveals environmental harm of a given GHG in CO2e. What then, makes SF6 problematic when converted into CO2e? SF6 has a GWP 23,500 times higher than CO2 – a value that is difficult to comprehend. The GWP metric is calculated using a 100-year timeframe based on GHG’s environmental harm. Yet, SF6 has an atmospheric lifetime of 3,200 years, essentially leaving 3,100 years of environmental harm unaccounted for. Using a simple logarithmic function incorporating IPCC data accounting for the missing 3,100 years, the GWP almost doubles. As illustrated below, this indicates how SF6 may be misrepresented in terms of environmental harm in CO2e emissions reporting.

As found by AGAGE – MIT & NASA, other worrying trends are observed. The atmospheric concentration of SF6 has more than doubled in the past 20 years. Luckily, its current concentration in the atmosphere remains low relative to other GHGs such as Methane or Nitrous Oxide.

Source: AGAGE

Regardless, the GWP of these two GHGs pales in comparison to the mindboggling detrimental effect of SF6 on the environment. Emitting this gas should therefore be strictly regulated.

Greenhouse Gas Emissions Reporting – Diverging Approaches

It only takes a little digging into offshore wind energy players to uncover diverging conversion methods of SF6 into CO2 equivalents (CO2e). The GHG emissions reporting methodologies of industry leaders use different emissions factors to convert SF6 into CO2e. An example of underreporting is illustrated by Vattenfall in their 2019 sustainability report, reporting SF6 as 15,000 times more potent than CO2. The emissions factor given by the GGP is 23,500. Ørsted uses a GGP emissions factor for the same gas in their 2019 ESG report. Yet, while Energinet also states it uses the GGP reporting framework in their 2020 CSR report, it uses an emissions factor of 22,800. The ownership distribution between Vattenfall and Ørsted in the Danish wind farm Horns Rev 1 of 40% and 60% respectively, thus blurs accountability and severity of reported emissions. As highlighted by the BBC, atmospheric concentration of SF6 is ten times the reported amount by countries. The IPCC and GGP are also aware of this.

During the past decade…actual SF₆ emissions from developed countries are at least twice the reported values. (Fifth Assessment Report of the IPPC)

Measuring Impact of SF₆ Leaks by Offshore Wind Players

SF6 emissions will rise exponentially alongside expanding electrified energy infrastructure using equipment containing this gas. This, together with repeated SF6 leaks, perpetuates the worryingly steep upward trend in atmospheric content of SF6 shown above. In 2020, Energinet reported a leak of 763.84kg SF6, or 17,950,240kg CO2e. The environmental impact of this leak is about the same as the emissions of 53 SpaceX rocket launches. Energinet has since admitted to years of underreporting of SF6, leading to amended SF6 emissions related to normal operations doubling.

Leaks of SF6 are too common. In Ørsted’s 2020 ESG report, a major leak at Asnæs Power Station was mentioned without disclosing the actual amount – withholding important risk-related data from investors. However, Energinet disclosed an SF6 leak of 527kg at that same facility in their 2020 CSR report. The leak for which Ørsted is responsible, yet feels is not material to disclose, is therefore potentially around 12,384,500kg CO2e. Indicating light at the end of the tunnel, Vestas has included SF6 on their Restricted Materials list since 2017, as well as introducing a take-back scheme for infrastructure containing this gas – setting a better example for business models of our green energy transition leaders.

Strengthening the Global Response to Climate Change Risk

It is vital that we understand SF6 is so detrimental to fighting climate change beyond 2100 that it has no place in sustainable business models today. Even if CO2 emissions are reduced in alignment with 2100 Paris Agreement goals, reporting in a 100-year timeframe will not save a planet billions of years old. GHG reporting must be better regulated and scrutinised in order to deliver a truly green energy transition. Releasing a gas causing irreversible damage cannot be an acceptable trade-off for a short-term “green” transition. While most company reports claim no alternatives exist, this is not true. Therefore, SF6-free equipment must be mandatorily installed.

A green transition goes beyond 2100, yet poor regulation enables energy companies to present SF6-CO2e favourably by using lower emission factors. Offshore wind energy players have not provided comparable, accountable, and transparent reporting – indicating stricter regulations on GHG reporting are necessary.

The Way Forward: Better Regulation

In 2014, an EU regulation banned the use of SF6 in all applications except energy after lobbyists argued no alternatives exist. The EU acknowledges the environmental harm of SF6, yet EU action has been described as inadequate. Asset managers, institutional and retail investors are exposed to hidden environmental risks related to SF6 in terms of double materiality. Double materiality referring to the financial costs related to management of SF6 incurred once completely banned. Non-financial reporting of GHG emissions and CO2e needs to be regulated far more than current global regulations. Investors, society, and most of all our environment deserves better protection.

NOTE: This article is based on a Copenhagen Business School (CBS) research paper in the course ‘ESG, Sustainable & Impact Investment’ taught by Kristjan Jespersen – Associate Professor at CBS – as part of the newly introduced Minor in ESG. The paper questions the greenness of wind energy by using the case of three large offshore wind energy farms in Denmark: Horns Rev 1 & 2 and Kriegers Flak. The findings are based on ESG, sustainability & annual reports from 2015-2019 of all involved OEMs, manufacturers, operators, and energy grid providers. Implications of the findings point to a coming hurdle within the electrification of a global green energy infrastructure transition.

About the Authors

Esben Holst, an SDG and CSR research intern at Sustainify, is a Danish-Luxembourgish masters student at Copenhagen Business School. Besides attending the newly introduced Minor in ESG at CBS, his past studies focus on international business in Asia and business development studies.

Photo by Karyatid on Unsplash

Remote research: A story about “being there”

By Elizabeth Cooper

◦ 2 min read ◦

It has now been more than a year since researchers have been forced to move most of their data collection online and, where this has not been possible, to cancel it completely. Doing research remotely has revealed some benefits: it is much cheaper, it is better for the environment, and it usually saves time, to name just a few. So, why should we go back to the “field” when this is all over? The following is a story about the importance of ‘being there’ – and about how the things that go wrong can indirectly lead to better quality research.

The settlement of Kulusuk is home to about 200 people and is located on a small island off the eastern coast of Greenland. As I touch down in a helicopter, I can see nothing but empty and dull terrain – different shades of brown rock contrasted against the electric blue sea, which glitters with the even brighter white of scattered icebergs floating endlessly into the distance.

The year is 2017 – summer, although the untrained eye wouldn’t guess so, judging by the snow-covered mountains drawn sharply on the horizon. I have been travelling around Greenland for a few weeks now, and my task is to interview tourists about their experiences in the country, as part of a market research project for Greenland’s national tourism board.

The problem with interviewing tourists in one of the most remote places in the world, however, is that there aren’t that many. This is a problem I have been dealing with throughout my travels, but one that is markedly more pronounced here on the east coast. There simply aren’t that many tourists who have the perfect combination of sufficient wealth and excess adventurous spirit that it takes to travel to Greenland, and most of those who do, head to the more accessible and well-equipped towns on the west coast. Here in the east, things feel incredibly…local. It’s an atmosphere that simultaneously excites me and fills me with panic about how on earth I will secure enough interviews to make my research statistically valid.

I drop my bags off at the town’s only hotel and start preparing for the twenty minute walk into the settlement itself, where I’ve heard there is a museum – and perhaps the chance to bump into a tourist or two. However, as I begin to march determined out of the door, a member of the hotel staff blocks me. She tells me that there is a “piteraq” on its way, and although I have no idea what a piteraq is, her expression in itself is grave enough to stop me in my tracks and make me step back into the warmth for an explanation.

The Greenlandic word “piteraq” literally translates to “the thing that attacks you”, and refers to a cold and incredibly fierce wind that originates on the polar ice cap and sweeps down the east coast. With wind speeds that are usually comparable to a category 1 or 2 hurricane, these storms effectively cut off the island for days on end, as flying in or out, or sailing anywhere, is made impossible.

Overcome by renewed frustration about the feasibility of my research, I head upstairs to the hotel restaurant, where the first stages of the piteraq are already playing out on its huge, panoramic windows – spatters of tiny raindrops are gathering on the glass, accompanied in surround sound by the occasional distant roar of wind gusts picking up momentum. To my surprise, the restaurant is full. As I soon learn, these are tourists who were supposed to be passing through, but who have now become stranded due to the weather. Grabbing a plate at the buffet, I sit down with an Austrian family who invite me to play cards with them.

Over the next two days, I don’t go anywhere – and neither do the tourists. We are imprisoned by the storm, and for lack of anything better to do, my fellow inmates are happy to engage me. I move from table to table, drinking coffee after coffee, and then wine after wine, with all of the other characters who have found themselves at this point in the world at this point in time. I hear stories from the British man who accidentally left all of his luggage (including his phone and wallet) on the tarmac at Reykjavik airport, and, upon arrival in Greenland, knocked on the nearest front door, told the family who lived there his story, and was taken in by them for three days; the elderly Canadian woman who had been dreaming about visiting Greenland since she was 14, when she saw a picture of a Greenlandic Inuit woman who, to her, “exuded happiness”; the two skittish French ladies who mistook a sled dog for a polar bear and sent the whole town into emergency response mode for no reason.

The skies after a piteraq are some of the bluest and clearest skies you will ever see in Greenland – it’s like going to sleep in black and white and waking up in colour. Mother Nature’s twisted sense of humour, I conclude, as I finally head to the airport, with a folder full of interview notes, a deeper connection to my research environment, and a newfound appreciation for going with the flow.

About the Author

Impact of COVID-19 on mortality inequalities: The case of France

By Clément Brébion

◦ 3 min read ◦

Despite an unprecedented worldwide decline in mortality over the last century, a substantial income gradient in life expectancy persists within most countries. In the US for instance, the 1% richest men have a life expectancy at the age of 40 that is 15 years larger than the poorest 1% (difference of 10 years for women) and this spread is currently increasing. In France (on which this blog post is based), the income gradient is of a similar size despite a more egalitarian access to health care.

Pandemics likely amplify this spread because they reveal latent inequalities in individual health capital and because they spread differently across living environments. Our recent study reveals that the COVID-19 crisis, which epitomizes such massive mortality shock on a worldwide scale, is not an outlier in this respect.

A few definitions

We analyse the impact of COVID-19 on mortality inequalities over the whole year 2020 in France, one of the most severely hit country in the world. We use comprehensive registered data, allowing us to study the evolution of mortality as well as the income level of each municipality of metropolitan France. Given the unreliability of public data on deaths attributed to COVID, we focus on excess mortality occurring in each municipality, defined as the deviation in 2020 all-cause mortality with respect to the average of 2019 and 2018. The link between poverty and morality related to the epidemic is thus analysed by comparing excess mortality between ‘rich’ and ‘poor’ municipalities, where ‘poor’ is defined as belonging to the poorest 25% of municipalities (‘Q1’ hereafter).

Two waves that have affected more the poor municipalities

Figure 1 below shows that, as in many European countries in 2020, France has been hit by two distinct waves that peaked in April (17,000 extra-deaths) and November (15,100 deaths), respectively. Each time, a lockdown was implemented at the national level to reduce the spread of the disease (March, 17 to May, 11 & October 30 to December 15). The first lockdown was the most stringent and has seemingly worked best to reduce casualties to COVID-19.

*Figure 1: The figure represents the difference between the monthly number of deaths in 2020 and its average over 2019 and 2018 in France*

Figure 2 shows the distribution of excess mortality across municipalities according to their income. Each month, the figure shows the average number of abnormal deaths that occurred since the beginning of the year in each group of municipalities (per 10k. inhabitants). While no specific pattern can be seen over the first three months of 2020, a marked difference between the two groups of municipalities appears in April (wave 1), that further grows as the second wave takes place (October-December).

In-depth analyses tell us that excess mortality in poor municipalities was 30% larger than in non-poor municipalities in 2020 (2.6 more extra-deaths per 10k. inhabitants). Our research shows that this spread directly relates to COVID-19 and is not explained by differences in the geographical localisation, in the share of old-age inhabitants or in the life conditions under the lockdown between rich and poor municipalities.

*Figure 2: The graph plots the cumulative sum of all excess deaths per 10,000 inhabitants from January 2020 for poor and non-poor municipalities in French urban areas.*

The fact that the income gradient uncovered during the first wave is not compensated during the second wave, but rather reappears with regularity every time the epidemic returns must be emphasized. One can indeed show that the income gradient is the strongest in areas that got most affected by COVID-19 in 2020. If further epidemic waves occurred – and some signs suggest that it has already started in France as well as in several other countries – our result suggest that, once again, the poorest municipalities will suffer greater losses.

Worse housing conditions and higher exposure through employment

What are the main differences between poor and non-poor municipalities that explain the income gradient in Covid-19 mortality? Our analysis highlights the key mediating role of labour market and housing conditions, in line with the idea that local factors are important determinants of the spread of epidemics. More specifically, the larger share of essential workers and of overcrowding housing almost fully explain the income gradient in COVID-19 related mortality. Interestingly, labor-market exposure remains an important determinant of COVID-19 mortality across both waves, while the role of housing conditions decreases over time, probably because the second lockdown was less stringent.

Our work shows that the current health crisis amplifies already existing socio-economic inequalities. It also suggests that public policies aiming at limiting its effects should primarily focus on the poorest municipalities, notably by protecting workers as much as possible in the short term and by improving housing conditions in the medium term.

References

Brandily, P., Brébion, C., Briole, S., & Khoury, L. (2021). “A Poorly Understood Disease? The Impact of COVID-19 on the Income Gradient in Mortality over the Course of the Pandemic” , Working Paper, n° 2020-44, Paris School of Economics.

About the Author

Clément Brébion joined CBS in September 2020 as a postdoctoral researcher. He received his PhD in economics in November 2019 from the Paris School of Economics. His main research interests are labour economics, economics of education and industrial relations. He has a particular interest into comparative research. More recently, he started working on the EU H2020 project HECAT that aims at developing and piloting an ethical algorithm and platform for use by PES and jobseekers.

March for Gender #4: Leaving no one behind

By Maria Figueroa

◦ 3 min read ◦

To mark International Women’s Day 2021, the University of Bath’s Business and Society blog and Copenhagen Business School’s Business of Society blog have teamed up to present March for Gender. This month we will explore research focusing on gender, or research findings that have specific implications for women.

In our final piece of the month Maria Figueroa looks beyond gender, and explains how business education and research can create a fully inclusive society that leaves no one behind.

The ethos of the Sustainable Development Goals (SDGs) is that society should be inclusive, environmentally just and enabling economic prosperity leaving no one behind. Business knowledge, education and research in these areas keep however advancing in separated disciplines, often directing the focus of attention to partial responses that may contribute to perpetuate conditions that leave people behind. Cohesion in achieving the SDGs goal of leaving no one behind cannot rely in adapting sameness of solutions. It requires attending to societal differences and facilitating the multiplication of ideas, creativity and forms of collective action and knowledge production and dissemination.

There is a critical role for research and education to help deepen the inquiry of what it takes to leave no one behind particularly a key role in business education.

The ethos of business education and research for sustainability is to prepare private actors, investors, new business models, organizations and institutional actors in finding ways of addressing SDGs. In the selection and adoption of seventeen development goals of 2015 involvement of a great array of societal actors, from national governments to business representatives, big corporations and civil society organizations was ensured. The resulting agenda for action made emphasis to acknowledge the central role in achieving SDGs to be played by private actors, private finance, and businesses in forms of public private partnerships.

However, more than five years later, only marginal changes are tangible within business school education and research and a weak articulation of the bold SDG agenda for change.

Besides individual courses and occasional initiatives, no major overhaul or programmatic educational shift effort within or across departments has challenge the operation and scope of business education.

A common approach in universities and business schools has been identification of how many SDGs goals are being targeted in their scope of education and current action, and reporting on these as evidence of engagement with SDGs. A similar approach serves to help businesses and public actors learn and report on what they are already doing to engage with SDGs. This together with helping business explore effective reactive stances to avoid societal or environmental crisis or challenges emerging. These two common approaches to business research and education make no clear inroad for how business and private actors can contribute to leaving no one behind.

The ethos of civil society is to generate voices and manifestations that reveal the extent of economic, social and environmental discontent, lack of improvement and unjust conditions and of articulating demands for action and changes at all levels. Recent events have elevated voices in movements such as Black Lives Matter, Me Too, Fridays-for-the-Future, Extinction Rebellion, Indigenous communities and other organized voices in society ranging from extreme right movements to nature representatives organizing other than human voices (forest, soil, pollinators, biodiversity).

The complexity of the current climate and environmental challenges and increasing volume and presence of these voices cannot be dismissed in business education and research, or handled in separated efforts as matter of concern only to businesses operating in international or developing regions and localities.

Leaving no one behind requires engaging in knowledge production that gives attention to all forms of engagement in business and societal interactions. This attention should facilitate changes in education that to produce exceptional novelty and innovation and to nurture a potential to advance knowledge of practical and academic high quality, education that is capable of setting new frontier research bringing in systemic interactions within a variety of academic disciplines and ensuring practical and transformative business knowledge with a holistic and environmentally just take toward sustainability transition.

Business schools are posed to advance breakthrough knowledge to meet the “leave no one behind” goal, tackling several areas from the production and service processes transparency specifically in value creation, to emphasising sustainability and environmental justice through the company’s technological advancements and presenting sustainable values, mission and vision.

Furthermore, business education need incorporating appraisal of systemic change associated with challenging processes and their ecological and social impact and behavior change. With the capability to increase the value for the environment, participation of nature in business innovations, the understanding of what enhances people’s agency, what provision safe wards participation, and improves cooperation and what helps to unleash individuals vitality and imagination and can contribute to co-create new market niches and business opportunities.

Maria Figueroa is an Associate Professor in Sustainability Management at the Department of Management Society and Communication at Copenhagen Business School. Her research intersects scholarship from urban sustainability science, comparative international politics of climate mitigation, innovation, and partnerships for sustainable development. She focuses on the assessments of drivers, trends and challenges of low carbon transitions and sustainable development.

March for Gender #2: The Gendered Impact of Covid-19

By Maha Rafi Atal

◦ 5 min read ◦

Most years, International Women’s Day is greeted by articles highlighting both progress made towards gender equality, and the distance still to close. 2021 is different. This year, organizations from the European Parliament to UN Women have instead drawn attention to how women have been pushed backwards – economically and politically – during the coronavirus. It has been “a disaster for feminism,”and a “great amplifier” which has exacerbated existing inequalities and unraveled tenuous gains. What does the research show?

First, the global economic contraction of the past year has disproportionately harmed women. In the United States alone, more than 2 million women have dropped out of the labor force altogether, a regression to 1988 participation levels, erasing a generation of gains.

Globally, women account for 54% of jobs lost during the pandemic, even though they make up only 39% of the global formal workforce.

Women bore the brunt of job losses in 17 of the 24 member-states of the OECD in 2020, and in South Africa, a survey found that two-thirds of workers laid off or furloughed in the first wave of the pandemic were women.

In part, this is a reflection of the sectors women work in, such as travel, tourism, restaurants, and food production, which have been largely shut down over the past year.

Women are also more likely to be employed on precarious or zero-hours contracts within these sectors, which made them vulnerable to job cuts, or in informal roles which left them outside the reach of government income-support schemes.

Finally, 190 million women work in global supply chains, including garments and food processing, and these industries have contracted as buyers either withdrew orders from suppliers during the recession, or sought to re-shore production closer to home. Labor market dynamics also mean women who stayed in work are among the most exposed to contracting the virus itself. A majority – estimates range from 67 to 76 percent – of the global health care workforce are women.

Yet only one quarter of the gendered discrepancy in job losses can be explained by the sectors where women are employed. Far more significant is the burden of care labor, both paid and unpaid, which disproportionately falls on women in both developed and developing countries.

Working mothers in the United Kingdom, for example, are 50% more likely than fathers to have either lost their jobs or quit in order to accommodate the responsibilities of caring for children with schools closed, with European women doing on average twice as much care labor as men during this period.

Over a million women in Japan left the job market in the first wave of the pandemic due to childcare needs at home, erasing tenuous progress the country had made towards workplace gender equality in the last decade. This unequal weight of the pandemic builds on pre-existing inequalities, as women are lower earners in many societies, meaning their jobs are considered a lower priority – by both employers and households – in times of crisis.

This economic crisis is not just a blow to women’s economic position, but to their political freedom. The “Local Diaries” podcast in India recounts the stories of women whose personal, political and sexual freedoms have evaporated as they have been locked down at home. As in pandemics past, covid-19 has seen a significant spike in domestic violence, femicide and other gender-bases violence in countries under lockdown. These include including developing countries like Nigeria, Argentina, Brazil, India, Pakistan, and China, and developed countries including the United States, the United Kingdom, France, Ireland, Lithuania, Sweden and Italy, a reminder that the home is not a safe place for many women. UN Women has referred to these spikes in violence as the “shadow pandemic.”

Moreover, despite early warnings from international organizations and women’s rights advocates, many countries shut down or diverted resources away from reproductive health care during the pandemic, leading to a rise in maternal deaths, unsafe abortions and pregnancy-related deaths. Finally, lockdowns themselves – and the expansion of policing and military powers associated with their enforcement – can themselves pose a risk to women, as police forces can themselves be significant perpetrators of violence against women, and as governments take advantage of these powers to suppress political organizing, including feminist organizing, as seen recently in both the UK and Poland.

At the same time, in a punishing political environment, women and feminist organizations have been at the forefront of pandemic response. The Chilean feminist movement has released a useful guide for governments and employers for responding to the pandemic in a gender-just way, while the Indian Kudumbashree women’s collective organized grassroots community kitchens and takeaway restaurants to provide food and employment to women, especially migrant women, during the country’s shut down, and repurposed textile micro-enterprises, largely women-owned, for the manufacture of PPE.

Despite calls from international experts for governments to respond directly to the crisis facing women by keeping services for reproductive health or shelters for victims of gender-based violence open, targeting cash transfers to women in informal employment and providing for paid child care, UNDP reports that only 12% of governments have adopted adequate gender-sensitive measures in their pandemic response.

Meanwhile, employers who have disproportionately laid off women in the crisis now report that gender equity will take a backseat to restoring their financial sustainability as the pandemic ends. This is made more difficult by the fact that some governments, such as the UK, have suspended requirements for companies to report on their gender pay gap or comply with other equality requirements, as part of pandemic support.

In our own research on corporate responses to covid-19, we found brands advertising luxury fashion goods to women and presenting the pandemic lockdowns as a welcome relief from labor in which women could enjoy them, a regressive image that shows how women’s work is still seen as frivolous and extraneous.

This International Women’s Day, then, we must reflect not on what progress we have made or can make, but on how women, internationally, can recover what we have lost.

About the Author

Maha Rafi Atal is a postdoctoral research fellow at the Copenhagen Business School, where her research focuses on corporate power, corporate social responsibility and corporate influence in the media. She is a co- Investigator on the Commodifying Compassion research project. http://www.maha-rafi-atal.com

Photo by Giacomo Ferroni on Unsplash

Under the radar: How companies can redefine what we consider socially responsible

By Verena Girschik

◦ 2 min read ◦

Notwithstanding promises of win-wins and synergies, we have good reasons to question whether companies address social problems in society’s best interests. As many critics have pointed out, companies tend to promote solutions that foster their commercial interests – often without considering their broader social impact.

Do our suspicions stop them? Of course not. Companies are usually well aware of any concerns and continuously evaluate the risk of prompting a controversy around their social activities. When they don’t have the social license to operate, they simply cultivate relations with organizations that do and get them to act on their behalf. Using such relational strategies, companies’ efforts remain hidden from public scrutiny insofar as they operate under the radar. Smart!

It’s not quite that simple, however. Legitimate organizations such as NGOs are just as aware of those widespread suspicions, and they are therefore often reluctant to work with companies. Indeed, if an organization’s relations with companies are perceived to be inappropriate, the organization risks exacerbating concerns around corporate influence and may thereby jeopardize its legitimacy too. The widespread suspicions of companies’ intentions thus make it more difficult for companies to participate in social change. Let’s call this a legitimacy barrier.

Overcoming the legitimacy barrier through relational work

How do companies overcome the legitimacy barrier and become legitimate actors in social change? In a recent publication (Girschik, 2020), I theorize how companies may engage in relational work to cultivate and shape their relations with legitimate organizations in such ways that redefine their involvement as socially responsible and thus legitimate. The paper details that companies can take four interdependent steps:

Cultivating communal relations: As a first step, companies can form or strengthen personal relations with people who work for legitimate organizations and who are likely to be interested in addressing the social problem in question. On a personal rather than organizational level, it is easier to align and create a shared understanding of potential courses of action.
Extending organizational support: Once a shared understanding is evolving, the company can start diligently targeting resources that enable the other organization to boost its activities and address the social problem. Such support has to happen on the organizational level to make sure that it is not considered for individual gain.
Articulating a partnership: Because the second step produces salient practical outcomes and illustrates the benefits of corporate involvement, it opens a window of opportunity to formalize collaboration through a partnership agreement. As part of this agreement, the company can participate in defining not only further courses of action but also the company’s role.
Differentiating as a socially responsible company: At this point, the company’s competitors have likely become interested and may try to imitate the company’s involvement by forming partnerships with the same or similar legitimate organizations. That’s a good thing for the first-moving company because it promotes the legitimacy of such partnerships. And benefiting from its strong relational embedding, the company is likely to outperform competitors through superior compliance with expectations. Being perceived as less sincere, competitors’ efforts are thus less strategically valuable and the first-moving company stands out as most socially responsible.

This process is time- and resource-consuming, but my study shows that it may pay off: it may enable companies to legitimate their involvement in social change while securing a competitive edge.

For better or worse?

These four steps explicate subtle yet consequential efforts through which companies may shape social change. The good news is that it is not easy and takes genuine long-term commitment. The bad news is that companies’ commercial interests may inform and mold trajectories of social change while their actual influence is hidden under a CSR veil. We need to keep deconstructing the relational constellations through which companies establish and exert their influence.

Reference

Girschik, V. (2020). Managing Legitimacy in Business‐Driven Social Change: The Role of Relational Work. Journal of Management Studies, 57(4), 775-804.

About the authors

Verena Girschik is Assistant Professor of CSR, Communication, and Organization at Copenhagen Business School (Denmark). She adopts a communicative institutionalist perspective to understand how companies negotiate their roles and responsibilities, how they perform them, and with what consequences. Empirically, she is interested in activism in and around multinational companies and in business–humanitarian collaboration. Her research has been published in the Journal of Management Studies, Human Relations, Business & Society, and Critical Perspectives on International Business. She’s on Twitter: @verenacph

Source: photo by Kelly Sikkema on Unsplash

A Southern-centered perspective on climate change in global value chains?

By Peter Lund-Thomsen

◦ 2 min read ◦

The garment and textile industries account for around 10% of global CO2 emissions, and their fast fashion approach consumes huge amounts of water in production and processing stages. While the fast fashion model incentivizes the overproduction/consumption of clothes, more sustainable solutions lie in the configuration of value chains towards slow fashion (durable products produced on demand) and the introduction of circular business models. Such a transformation will have consequences for the environment, workers’ conditions, and economic development.

This is particularly the case in the light of COVID-19, which led to a temporary disruption in the global garment and textiles value chains as stores closed in Europe and the United States in the spring of 2020. The cancellation and non-payment of garment orders particularly affected suppliers and workers in Bangladesh, leaving hundreds of thousands of workers without jobs and possibly facing destitution.

This is the focus of a new research and capacity-building project on ‘Climate Change and Global Value Chains’ coordinated by the CBS that has recently been funded by the Danish Development Research Council. In this research project, we will be working with colleagues from the University of Aalborg and Roskilde University in Denmark as well as BRAC University and the University of Dhaka in Bangladesh. Private sector partners include the Danish Ethical Trading Initiative and Danish Fashion and Textile.

I think that a key challenge in this new project is how we approach ‘climate change’ in the context of global value chains.

In the Danish debate on climate change, it is almost universally accepted that climate change should be at the top of the political and corporate sustainability agendas. However, both employers and workers in the Bangladeshi garment and textile industries may not perceive climate change mitigation as an immediate priority.

First, the purchasing practices of major brands sourcing garments from Bangladesh tend to result in downward price pressures, seasonal fluctuations in demand, and shorter lead times while, at the same time, these brands are also imposing ever greater environmental and labor standard requirements on their suppliers (not only in Bangladesh but elsewhere in the global South). Economic value is very unevenly distributed along the textile/garment value chain, with major brands reaping up to ten times higher economic value than suppliers – and even less reaching workers.

Hence, Bangladeshi suppliers often perceive the environmental and labor requirements of brands as adding to their costs without bringing additional business benefits.

In this context, suppliers may have very few, if any, incentives to address climate concerns in their value chains, while workers in the industry are trying to survive in a context of economic uncertainty.

In my view, a critical aspect of this new project is therefore that we will not only look at climate change from a Northern-centered perspective; that is, we are not only concerned with how brands and factories engage in the process of decarbonization. We will also zoom in on the importance of climate change adaptation, which I would label a more Southern-centered perspective on climate change in global value chains.

In fact, Bangladesh is one of the countries most affected by global climate change whose coastal areas and ports are prone to flooding, resulting in disruptions of the garment/textile value chain and economic losses for local manufacturers and workers.

Moreover, garment factories in greater Dhaka have extremely high lead and CO2 emissions, while many factory workers live in parts of the city that have unhygienic water supplies and must cope with living conditions that affect their health. Hence, integrating climate change and global value chain analysis from a Southern-centered perspective, I would argue, involves looking at the ‘business case’ for climate change adaptation – in other words, we must understand how can climate change adaptation can help in securing the future viability, competitiveness, and jobs in the garment industry and textile industries of Bangladesh.

About the Author

Peter Lund-Thomsen is Professor at the Department of Management, Society and Communication at Copenhagen Business School. His research focuses on sustainable value chains, industrial clusters, and corporate social responsibility with a regional focus on South Asia.

Marching toward the end of enlightenment?

How management and organization scholarship can help explain new forms of anti-enlightenment organizing

By Dennis Schoeneborn

In the scholarly field of management and organization studies, which is traditionally primarily concerned with business firms and their performance, we can lately observe an increasing attention toward addressing some of the most pressing societal challenges of our times, such as climate change, pandemics, inequalities, etc. (see George et al., 2016). At the same time, one of the most striking societal challenges has found comparably little attention by management and organizational scholarship up until today: the rise of anti-enlightenment movements and the potentially corroding effects they have for democratic societies.

The rioters’ march on Capitol Hill on Jan. 6, 2021 has showcased in painstaking ways how democracies can be endangered through social movements that center around anti-enlightenment and “post-truth” sentiments, incl. conspiracy theories, “alternative facts”, or other negations of scientific reason (for an overview, see Farkas & Schou, 2020). In the same context, the question arises how the scholarly field of management and organization studies can help address and explain the emergence of such anti-enlightenment movements and how they organize themselves.

To study the phenomenon of anti-enlightenment movements (i.e. coordinated agitation against scientific reason and facts, democratic values, or the rule of law), I suggest three research areas in organizational scholarship are of particular relevance and that each (in one way or another) cross-connect to the neighboring field of media and communication studies:

(1) Explaining organizational emergence and dissolution

First, management and organization scholarship can explore questions of organizational emergence and design. This may involve questions like: To what extent can new forms of anti-enlightenment organizing (e.g., conspiracy theorists like QAnon or science denialists like the anti-vaxx movement) be explained with existing organizational theories – or to what extent are novel theoretical vocabularies needed to account for these phenomena? Also, how can anti-enlightenment forms of organizing be dissolved or “deconstituted” (cf. Bean & Buikema, 2015)? For example, how to counter and delegitimize anti-enlightenment ideologies in the public debate, if they are based on entirely different language games (Knight & Tsoukas, 2019), where the same signifier may have completely different meanings (e.g., truth is what is factually right vs. truth is when it serves my own interests)?

(2) Studying transformations of how the public discourse is organized

Second, management and organization scholarship can explore transformations of how the public discourse is organized. For instance, how did the media landscape change, especially through the rise of digital media, and how do these changes affect the possibilities of deliberative dialog and public will formation in democratic societies (Bennett & Livingston, 2018). In a similar vein, organizational scholars have critically addressed the spread of “fake news”, incl. the erosion of “the public” into multiple fragmented “publics” that gather info by-and-large from within their own filter bubbles and echo chambers (see also Knight & Tsoukas, 2019; Foroughi et al., 2019). Furthermore, in the same context, the question arises how to “detox” an increasingly polarized public discourse (Ward, 2019)?

(3) Exploring socio-technological conditions of “organized immaturity”

Third, management and organization scholarship can explore the underlying socio-technological conditions under which anti-enlightenment movements tend to emerge. For instance, in a recent working paper, Scherer and Neesham (2020) propose the term “organized immaturity” (which alludes to the notion of immaturity or Unmündigkeit in Immanuel Kant’s theory of enlightenment). As the authors hypothesize, individuals’ delegation of decision-making to socio-technological systems (such as algorithmic filtering of content in social media) tends to lead over time to an “erosion of the individual’s capacity for public use of reason” (p. 4; version from Dec. 22, 2020). Put this way, the concept may also help explain some of the root causes of what observers of the Capitol Hill events termed the “spoilt child version of America – so ‘free’ [that] it ignored the truths, laws and decency that actually enabled that freedom” (Paton Walsh, 2020).

To conclude, while we can find some first and important steps in the direction of exploring anti-enlightenment movements, further research in this direction is urgently needed, also as a chance to demonstrate management and organization scholarship’s ability to address (and potentially help solve) large-scale societal problems. In the same context, a recent Call for Papers by the journal Business Ethics Quarterly (Scherer et al., in preparation) invites for scholarly submissions that address the socio-technological conditions of “organized immaturity” and neighboring phenomena.

References

Bean, H., & Buikema, R. J. (2015). Deconstituting al-Qa’ida: CCO theory and the decline and dissolution of hidden organizations. Management Communication Quarterly, 29(4), 512-538.

Bennett, W. L., & Livingston, S. (2018). The disinformation order: Disruptive communication and the decline of democratic institutions. European Journal of Communication, 33(2), 122-139.

Farkas, J., & Schou, J. (2019). Post-truth, fake news and democracy: Mapping the politics of falsehood. New York: Routledge.

Foroughi, H., Gabriel, Y., & Fotaki, M. (2019). Leadership in a post-truth era: A new narrative disorder? Leadership, 15(2), 135-151.

George, G., Howard-Grenville, J., Joshi, A., & Tihanyi, L. (2016). Understanding and tackling societal grand challenges through management research. Academy of Management Journal, 59(6), 1880-1895.

Knight, E., & Tsoukas, H. (2019). When Fiction Trumps Truth: What ‘post-truth’ and ‘alternative facts’ mean for management studies. Organization Studies, 40(2), 183-197.

Paton Walsh. E. (2020, Jan. 8). America was lucky to be saved by its democracy – even if some don’t realize it. CNN.com.

Scherer, A. G., & Neesham, C. (2020). New challenges to enlightenment: Why socio-technological conditions lead to organized immaturity and what to do about it. Working Paper (version from Dec,, 22, 2020).

Scherer, A. G., Neesham, C., Schoeneborn, D., & Scholz, M. (in preparation). Socio-technological conditions of organized immaturity in the 21^st century. Special issue in preparation for Business Ethics Quarterly (submission deadline: 31/05/2021).

Ward, S. J. A. (2019). Ethical journalism in a populist age: The democratically engaged journalist. Lanham, MD: Rowman & Littlefield.

About the Author

Dennis Schoeneborn is Professor of Organization, Communication, and CSR at Copenhagen Business School and Visiting Professor of Organization Studies at Leuphana University of Lüneburg. In his research, he mainly focuses on organization theory, organizational communication, digital media and communication, corporate social responsibility and sustainability, as well as new forms of organizing.

Photo from Unsplash

The maker movement – the quiet, game-changing revolution near you

By Efthymios Altsitsiadis

Anyone can and should have access to the tools and knowledge necessary to build anything they might need or want. This statement struck me when I first read about the makers movement – a cultural trend that is associated with democratized manufacturing, 3D printing and maker spaces.

At the heart of the movement lies a simple premise – ordinary people manufacturing themselves what they need. Makers, alone or in communities, from any career or skill level are pulled into making something, from calligraphy to furniture to technology and lately to personal protective equipment.

Large institutions like the European Commission, the White house and the Chinese government herald the maker movement as a major driver for the new “industrial revolution”, a thriving multibillion market and a potential asset in the fight against climate change.

But as with every nascent field, there are many hurdles on our way there – this piece will touch upon what many (including me) consider the most important: understanding how and why people embrace the movement.

We already know that the increase of availability and affordability of digital fabrication tools such as 3D printers and laser cutters and the advance in certain collaborative technologies have favored the creation of a rapidly increasing number of Do-It-Yourself communities. What we know much less about is why people choose to become makers. This matters gravely, not only because makers are the lifeline of the movement – but because we need to be sure that everyone can enjoy the same access to fabrication. In a large study supported by the EU, we asked thousands of citizens around Europe their opinions regarding the maker movement [1].

We wanted to understand better what people know about the maker movement, how aware they are about fabrication and how they perceive the different facilities (e.g. makerspaces). We also investigated various attitudes and potential reasons that could be driving or hampering people’s support to the movement. More importantly, however, we asked participants about their intentions to become makers and what motivates them.

Findings of our study

What we found confirmed many of our initial thoughts.

Most of the participants were not well aware about the maker movement (40% had no familiarity with the term), but about 1 in 5 respondents had some previous experience with making. These people come from all walks of life, and despite some small differences in demographics, every cohort is represented.

A very positive finding was that most people were very open to visiting, supporting or participating in making activities in their local area. For the majority of respondents, their participation in maker spaces would provide them with benefits and help them improve their skills. The majority also believes that makerspaces will have a positive impact on their region and will open-up new professional opportunities. We dug a bit deeper so we can get a better understanding of people’s motivations.

We found that respondents who have positive perceptions about sustainability and circular economy, who were familiar with the maker movement and who defined themselves as persons who like to repair or make things were significantly more likely to join the movement.

The results also indicate that demographics like gender and age could be playing a role in driving respondent’s perceptions and participation.

This study is useful in providing some additional evidence and answers regarding the engagement of Europeans with the Maker Movement to the existing body of knowledge. But it is obviously not enough. There are literally dozens of overlooked dimensions and potential levers for getting people involved or at least for actively supporting the movement. Essential issues like awareness, knowledge and skills, safety and accessibility, tools and incentives are all open for inquiry and experimentation. The movement itself is still shaping and many of the key characteristics should not be taken for granted; least of all its openness to everyone and its sustainability/circularity character.

The good news is that there are already major initiatives being deployed at various levels that are working on many of these angles (for interested readers I would like to refer you to projects like Pop-Machina, iProduce, Reflow, all sponsored by the EC and open to interested members of the public). In all these initiatives, cross-collaboration is key. Academics should work hand in hand with practitioners, industry and policy makers to embrace and support this amazing revolution and help nudge it towards its greatest ambitions – democratized access to circular production.

References

[1] Panori, A., Piccoli, A., Ozdek, E., Spyridopoulos, K. and Altsitsiadis, A. (2020). Market research report. (Deliverable 2.2). Leuven: Pop-Machina project 821479 – H2020

About the Author

Assistant Prof. Efthymios Altsitsiadis, PhD is a behavioural economist with a mind for interdisciplinary research. A user-centricity enthusiast, Efthymios is set to help provide evidence-based answers to some of the most persistent and evasive behavioural questions in a variety of areas like sustainability, health, energy and mobility. He is currently teaching Machine Learning and Digital Behaviour at CBS. He conducts research in collaborative production and circular economy, in advanced technological agents (smart apps, avatars, chat-bot services) and has worked as a social scientist in several cross-disciplinary research projects.

Insecure work: rethinking precarity through Kenya’s tea plantations

By Hannah Elliott

Over the last decade, the term ‘precarity’ has become ubiquitous in studies of work and labor, as jobs are increasingly characterized by temporary and insecure contracts; lack of basic welfare provisions such as paid leave; and low pay. The informalization of work has gained pace in a post-Fordist world. And we can expect to see more precarity. The COVID-19 pandemic is pushing employers the world over to think of new ways to reduce labor costs as economies flounder.

Anthropologist of work Kathleen Millar has argued that we need to be careful about how we think about ‘precarity’ when we talk about insecure work. The term can inadvertently “smuggle in a conservative politics”, valorizing and romanticizing a Fordist past of full-time wage labor. This employment past is not universal. In the majority of the world, economies have historically been characterized by informality. Here, formal secure work has been more of an idea, a promise tied up in teleological ideals of modernization and development, than a reality. Furthermore, in former settler colonies such as Kenya and South Africa, formal wage employment has roots in colonial capitalism, coercion and exploitation.

I’ve been thinking about precarity through the case of changing employment conditions on Kenyan tea plantations, where I’ve been researching the production of certified sustainable tea as part of the SUSTEIN project. I carried out my latest fieldwork between January and March this year, right up until the majority of European countries went into lockdown. A few weeks later, Kenya followed suit. In Kericho, the heart of Kenya’s tea production and where I spent most of my stay, there was little sense that the world was on the brink of an impending global pandemic, let alone reflection on what that could mean for the tea industry. And yet, in conversations with diverse actors in the sector, there was a shared narrative that the industry, responsible for one of Kenya’s biggest export commodities and foreign exchange earners, was struggling.

Enduring low prices of tea on the global market and rising costs of production have led multinational companies owning large tea plantations to look for ways to cut labor costs.

Tea is a labor intensive crop, and companies have historically depended on large resident workforces to pluck tea, plant and prune tea bushes and operate factories, among a multitude of other tasks required to maintain vast tea plantations. Biannual collective bargaining agreements led by the workers’ union have seen wages increase at a rate companies say is unsustainable for business. Citing high wages relative to other agricultural sectors in Kenya and the additional costs of employee benefits such as free housing and water, payment of retirement funds, and contributions to health insurance, along with the costs of maintaining infrastructures used by workers and their dependents such as schools and dispensaries, companies argue for the need to reduce labor forces.

The gradual reduction of company-employed low-level or ‘general’ workers has been taking place through parallel processes of mechanizing tea harvesting and outsourcing tasks outside of companies’ core activities of tea harvesting and factory processing. While workers carrying out core tasks continue to be employed directly by the company, thus receiving a union-negotiated wage and the package of employment privileges described above, outsourced workers are hired on insecure terms by external service providers who hold contracts with tea plantation companies. Outsourced workers are typically employed on short contracts, sometimes for as little as a few days. This renders them ineligible for union membership, and most earn less than half the daily salary of a company employee. If they are unable to work due to sickness, they will not be paid. The contractors who employ them are required by the company to make deductions from their salaries to national health insurance and social security schemes, but low wages and short-term employment mean that contributions are meagre.

Kenya has a large work-seeking population, and people are prepared to take outsourced jobs because of few employment opportunities.

In spite of the striking unsustainability of labor outsourcing for these workers, international sustainability standards say surprisingly little about this category and establish few mechanisms to safeguard them.

In the context of decreasing opportunities for employment in permanent company jobs on tea plantations, current and former workers talk with nostalgia about a time when company jobs and their related securities were a plenty. This nostalgia echoes the valorization of stable, full-time wage labor that Millar identifies as lurking in the notion of precarity. But, without dismissing workers’ nostalgia, we should be careful not to romanticize plantation jobs of the past which were, in spite of their securities relative to outsourced work, inherently precarious.

During the early twentieth century, the colonial administration sought to disrupt and undermine subsistence economies so that people would be forced to seek work on infrastructure projects and in settler industry and agriculture, including tea plantations. For decades, the industry struggled with labor shortage which undermined its growth and expansion. During the 1940s and 50s, efforts were made to create permanent resident labor forces through welfare provisions such as housing, kitchen gardens and retirement funds. Yet workers could never own the houses they lived in, nor the land they were given to cultivate, which remained the property of the company.

In seeking to create a stable workforce that could make Kenya’s tea industry sustainable, the colonial administration destabilized rural economies and created a class of people who would be forced, for generations, to seek wage labor.

If, in these uncertain times, we shouldn’t wish for a whole-sale return to permanent, full-time wage labor, what might we hope for instead? Millar argues for a critical politics of precarity that problematizes the centrality of economically productive work and its promise in contemporary capitalism rather than calling for a return to stable full-time work. Campaigns that propose alternatives to work include Universal Basic Income – where governments makes regular unconditional payments to every individual – and Universal Basic Services. A 2017 study by UCL’s Institute for Global Prosperity proposing Universal Basic Services in the UK argues that government provision of basic services such as food, shelter and transport has the potential to reduce dramatically the cost of living for those on the lowest incomes, making participation, belonging and cohesion possible in the face of increasingly precarious work. These initiatives are becoming more compelling as the world reels from the pandemic and we try to imagine a recovery that prioritizes social and environmental justice.

References

Kathleen M. Millar (2017) ‘Towards a critical politics of precarity’. Sociology Compass, 11 (6), pp. 1-11.

Henrietta Moore, Andrew Percy, Jonathan Portes and Howard Reed (2017) Social prosperity for the future: A proposal for Universal Basic Services. Social Prosperity Network Report: Institute for Global Prosperity, UCL.

About the Author

Hannah Elliott is a postdoc at MSC focusing broadly on the political and economic anthropology, in particular in eastern Africa where she has been conducting research since 2009. Her current research examines the production of certified sustainable tea in Kenya as part of the SUSTEIN project.

Has COVID-19 changed our relationship with food?

CBS is involved in two large-scale international studies about people’s changes in food-related habits during the pandemic

By Meike Janssen

It might sound familiar: Since the beginning of the Covid-19 pandemic, photos of homemade bread, fancy meals and desserts are circulating on social media while empty pizza cartons are piling up in the neighbours’ garbage bin. It seems that many people have changed their food-related habits during the pandemic, partly in opposite directions.

That is why consumer researchers from the Consumer and Behavioural Insights Group (CBIG) at CBS Sustainability launched two large-scale consumer studies [1] in collaboration with international colleagues. The studies analyse the shifts in terms of buying, cooking and eating habits that have been brought on by the pandemic and the related restrictions and lockdown measures.

Food-related behaviour is to a large degree subject to habits and routines. Changes in eating patterns are normally occurring rather slowly over longer periods of time.

Besides, we know that food consumption is largely influenced not only by personal preferences but also by context, i.e. where we eat and with whom we eat.

Since the beginning of the pandemic, we have been experiencing the unprecedented case that many people have spent much more time at home. That also means many people have eaten more meals at home than before the pandemic. Now, we are beginning to understand what consequences these changes in the context of food consumption have had, e.g. in terms of how (un)balanced the diets have been or whether people’s cooking skills have improved.

Findings

Our data was collected at the end of April / beginning of May 2020 among more than 1.000 consumers in Denmark. The food frequency questionnaire revealed a number of interesting trends. Depending on the type of food, 10-45% of consumers changed their consumption frequency during the pandemic compared to before. In all food categories, we observed diverging trends with some people having decreased and others increased consumption. We observed the highest rates of change in the categories frozen food, canned food, and cake and biscuits, while the lowest rates of change occurred in the categories bread, dairy products, and alcoholic drinks.

For all types of fresh food analysed, the proportion of people who had decreased their consumption was higher than the proportion of people who had increased consumption, i.e. the overall average consumption of fresh food significantly decreased during the pandemic. The consumption of sweet snacks, by contrast, significantly increased.

Partly, the observed changes in food consumption can be explained by decreases in food shopping frequencies. As expected, a decrease in shopping frequency was significantly related to a decrease of fresh food consumption and an increase in the consumption of frozen food and canned food but also of sweet snacks.

We further found significant effects of restriction and lockdown measures on changes in food consumption, i.e. the effect of the closure of:

physical workplaces
work canteens
cafés and restaurants
schools and kindergartens.

While it is not surprising that these restrictions impacted upon people’s food consumption, we were surprised to see that those people affected by the same restrictions were likely to change their consumption of certain types of food in similar ways.

For instance, people affected by a closure of their physical workplace were likely to decrease the consumption of bread, cake and biscuits. Families with children tended to increase the consumption of fruit and veggies, presumably in a pursuit to eat more healthily. At the same time, they also increased the consumption of bread, sweets and chocolate, and alcoholic drinks, perhaps as a means to cope with stress.

Single-person households, by contrast, tended to decrease their consumption of fruit and vegetables and fresh meat, probably because they ate less cooked meals. They also tended to decrease the consumption of bread, and sweets and chocolate.

The results demonstrate that the relatively strict restrictions and lockdown measures in spring 2020 affected different people and households in very different ways. While some people spent more time with meal preparation and cooking, others did the opposite.

The results provide insights, e.g. for the areas of healthy eating, food system resilience, and behavioural change. We are currently compiling recommendations for decision-makers in the food sector on how to prevent detrimental effects of the pandemic on people’s food-related habits. Key insights of the two studies will soon be published in scientific journals.

References

[1] Our relationship with food (www.food-covid-19.org), and Corona Cooking Survey (https://coronacookingsurvey.com)

About the Author

Meike Janssen is Associate Professor for Sustainable Consumption and Behavioural Studies, CBS Sustainability, Copenhagen Business School. Her research focuses on consumer behaviour in the field of sustainable consumption, in particular on consumers’ decision-making processes related to sustainable products and the drivers of and barriers to sustainable product choices.

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What does it mean to call someone a stakeholder?

By Matthew Archer

The word “stakeholder” is ubiquitous in sustainability discourse. We see it in corporate sustainability reports, policy documents, business plans, and sustainable development guidelines. Stakeholders are discussed in parliaments, in corporate boardrooms, at sustainability conferences, and in classrooms around the world.

The stakeholder concept was popularized with the 1984 publication of R. Edward Freeman’s Strategic Management: A Stakeholder Approach, where the stakeholder was defined as a person or group who are able to affect or are affected by an organization pursuing its goals. Although the term has been hotly debated ever since, it is clear that Freeman’s work has had a huge impact on management discourse, especially when it comes to social responsibility and sustainability.

In my own ethnographic research over the past few years among people I refer to as “sustainability professionals,” I’ve heard the word stakeholder mentioned countless times, in nearly every context, from venues like the COP21 negotiations in Paris to casual conversations with friends and colleagues at the pub.

Students in my classes use it fluently to refer to groups as distinct as shareholders, consumers, and factory workers. They’re able to classify these different stakeholders according to how important they are from the perspective of the company. Sometimes, the stakeholder concept can seem too expansive, with students questioning whether anyone is not a stakeholder.

But in my own research, I’ve found that although it is pretty widely accepted that most people are stakeholders in one form or another, there is a particular imaginary surrounding stakeholders. In a recent article, I found evidence for this by looking at the images that accompany mentions of the word stakeholder in sustainability reports and standards guidelines.

More often than not, these images depict workers in the Global South who are almost always people of color, and who are often women.

Similarly, when people use the word “stakeholder” in interviews, they are typically referring to people in producer countries, with the implication that these distant, marginalized stakeholders are the ones who stand to benefit the most from sustainability projects and, crucially, stand to lose the most if those projects are unsuccessful.

This led me to question the power dynamics that are inherent in the stakeholder concept. There’s a big literature in geography and anthropology on the power to categorize groups of people, drawing on decades of critical research on international development. More to the point, when companies talking about engaging with stakeholders in their corporate sustainability and corporate social responsibility initiatives, most of the time they’re actually treating the people we think of as stereotypical stakeholders as stakes, that is, what stands to be lost in a game of chance.

Given the power differences between people who can affect an organization and people who are affected by it, perhaps it’s time to come up with an alternative to the stakeholder concept.

About the author

Matthew Archer is Assistant Professor at Copenhagen Business School. He is an ethnographer and political ecologist interested in corporate sustainability and sustainable finance. Visit Matthew’s personal webpage.

By the same author: Teaching (and doing) anthropology in a business school

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I Am What I Pledge – The importance of value alignment and crowdfunder behavior

By Kristian Roed Nielsen

Together with my colleague Julia Binder we recently published a paper on the role of values in driving crowdfunding backer behavior. The study found that altruistically framed campaigns have a higher chance for funding as compared to campaigns that emphasize egoistic or environmental motives, but even more importantly, that message framing needs to be aligned with the personal values of the backers. As such, our study highlights important similarities between resource mobilization in social movements and in crowdfunding.

The growth of reward-based crowdfunding as an alternative source of innovative financing has recently triggered great enthusiasm for its potential to enable a greater diversity of entrepreneurs to access to important seed funds (Gerber and Hui, 2013; Sorenson et al., 2016). This enthusiasm is in part related to the fact that – as compared to other forms of innovation capital and indeed other models of crowdfunding, such as lending or equity-based – the consumer plays a central role as a financier of the reward-based innovation. Considering that consumers represent a different kind of investor (Assenova et al., 2016), they are also driven by a wider and distinct range of motivations as compared to traditional investors (Lehner, 2013).

Understanding this new kind of investor has thus been subject to increasing academic debates, especially regarding the success criteria of reward-based campaigns (Mollick, 2014).

However, empirical evidence to date has produced mixed results – while some studies suggest a social- or environmental value orientation of a given reward-based campaign to significantly increase its odds of receiving funding (Calic and Mosakowski, 2016; Lehner and Nicholls, 2014), other studies have found no such effect (Cholakova and Clarysse, 2015; Hörisch, 2015).

Thus, despite enthusiasm from a range of actors, it is unclear under which conditions reward-based crowdfunding campaigns are successful in receiving funding. In this respect, the role of message framing has received little interest, despite its potential for shedding light on the criteria for crowdfunding campaign success. Against this background, we sought to examine how founders’ framing of a reward-based crowdfunding message affect the mobilization of backers and what values are conveyed in successful crowdfunding efforts.

The study in a nutshell

The study draws on framing theory as utilized in the literature of social movement mobilization, which focuses on how messages attract audience attention and in turn plays a pivotal role in securing movement participation (Benford & Snow 2000). Considering that in reward-based crowdfunding entrepreneurs are equally concerned about mobilizing backers for their campaign, we investigate whether entrepreneurs’ framing affects backer’s attention and influences their interpretation and action towards the crowdfunding campaign.

Based on the theoretical literature on human values (Schwartz 1994), we operationalize these linguistic frames as egoistic, altruistic, and biospheric (Axelrod, 1994; Groot & Steg, 2008; Stern, 2000). These three values respectively reflect considerations on “what is in it for me”, “what is in it for others”, and “what is in it for the environment” when purchasing a given product (de Groot and Steg, 2008). In order to observe causality between these three linguistic value frames and individual pledging behaviour the study employed an experiment which replicated an online crowdfunding platform to better resemble what individuals would see in the real world and thus providing us with what we hope are more external valid observations (Grégoire et al., 2019).

More specifically, we investigated how the framing of reward-based crowdfunding messages as either egoistic, altruistic, or biospheric affected the success of eight hypothetical projects seeking financing in return for the respective product. Especially this designing of a realistic experimental setting represented a huge hurdle, but also a necessary one.

We find that too often experiments lack the realism of what they are seeking to study which we believe is a real detriment to results they yield. We thus wanted to move outside not only the lab but also create a user experience that best captured what an actually crowdfunding platform looks like.

For researchers entering with minimal programming experience it was a steep, but really rewarding learning curve. If a professional programmer saw our work, they would likely have a meltdown over the messy coding, but it worked and inspired many new ideas.

Fresh insights

The results provide fresh insights into an emerging debate relating to the potential of crowdfunding to support entrepreneurship.

Firstly, our findings show that while some consumers respond positively to campaigns emphasizing intrinsic benefits, an emphasis on such collective benefits cannot be seen as a silver bullet for crowdfunding success. Indeed, while we find that an emphasis on altruistic benefits leads to an overall higher willingness to support the campaign, we find no such effect in the case of products emphasizing the benefits for the environment, but rather that the attractiveness of a crowdfunding campaign is dependent on the alignment with the values of the respective target audience.

Secondly, when seeking to garner funding via a crowd, the importance of customer segmentation and a thorough understanding of these customers’ values and expectations remains the most relevant task before designing and launching the crowdfunding campaign.

Our results clearly show that the willingness to invest in a campaign largely depends on the alignment between backers’ values with the values transmitted in the campaign.

Finally, the findings provide implications for sustainable entrepreneurs, for whom crowdfunding has been emphasized to provide a relevant fundraising opportunity (Testa, Nielsen, et al. 2019).

On the one hand, the fact that crowdfunding is driven largely by consumers rather than professional investors does not in itself change consumer demands; demands which more often than not fail to correlate with sustainable behavior (Sheeran 2002; Webb & Sheeran 2006). While one may argue that the motivations of funders for pledging towards a campaign may be different from those of a professional investor, our results seem to confirm that consumers seek to satisfy their own values when deciding to invest in a crowdfunding campaign. On the other hand, this does not imply a lack of significant potential for sustainable entrepreneurs’ success in reward-based crowdfunding.

Considering the increasing concern for sustainability and because of our finding that value alignment has a particularly high potential in a crowdfunding context, sustainable campaigns focusing on a clearly delineated target group have a high likelihood to reach their aspired funding goal.

About the author

Kristian Roed Nielsen is Assistant Professor at the Department of Management, Society and Communication at Copenhagen Business School. His research strives to examine what, if any, potential role the “crowd” could have in driving, financing and enabling sustainable entrepreneurship and innovation. Kristian’s Twitter: @RoedNielsen

References

Assenova, V., Best, J., Cagney, M., Ellenoff, D., Karas, K., Moon, J., Neiss, S., Suber, R., Sorenson, O., 2016. The Present and Future of Crowdfunding. Calif. Manage. Rev. 58, 125–135.

Axelrod, L., 1994. Balancing Personal Needs with Environmental Preservation: Identifying the Values that Guide Decisions in Ecological Dilemmas. J. Soc. Issues 50, 85–104. https://doi.org/10.1111/j.1540-4560.1994.tb02421.x

Benford, R.D. & Snow, D.A., 2000. Framing Processes and Social Movements: An Overview and Assessment. Annual Review of Sociology, 26, pp.611–639. Available at: http://www.jstor.org/stable/223459.

Calic, G., Mosakowski, E., 2016. Kicking Off Social Entrepreneurship: How A Sustainability Orientation Influences Crowdfunding Success. J. Manag. Stud. 53, 738–767. https://doi.org/10.1111/joms.12201

Cholakova, M., Clarysse, B., 2015. Does the Possibility to Make Equity Investments in Crowdfunding Projects Crowd Out Reward-based Investments? Entrep. Theory Pract. 39, 145–172.

de Groot, J.I.M., Steg, L., 2008. Value Orientations to Explain Beliefs Related to Environmental Significant Behavior: How to Measure Egoistic, Altruistic, and Biospheric Value Orientations. Environ. Behav. 40, 330–354. https://doi.org/10.1177/0013916506297831

Gerber, E.M., Hui, J., 2013. Crowdfunding : Motivations and Deterrents for Participation. ACM Trans. Comput. Interact. 20, 34–32. https://doi.org/http://dx.doi.org/10.1145/2530540

Grégoire, D.A., Binder, J.K., Rauch, A., 2019. Navigating the validity tradeoffs of entrepreneurship research experiments: A systematic review and best-practice suggestions. J. Bus. Ventur. 34, 284–310. https://doi.org/https://doi.org/10.1016/j.jbusvent.2018.10.002

Hörisch, J., 2015. Crowdfunding for environmental ventures: an empirical analysis of the influence of environmental orientation on the success of crowdfunding initiatives. J. Clean. Prod. 107, 636 – 645. https://doi.org/http://dx.doi.org/10.1016/j.jclepro.2015.05.046

Lehner, O.M., 2013. Crowdfunding social ventures: a model and research agenda. Ventur. Cap. 15, 289–311. https://doi.org/10.1080/13691066.2013.782624

Lehner, O.M., Nicholls, A., 2014. Social finance and crowdfunding for social enterprises: A public-private case study providing legitimacy and leverage. Ventur. Cap. 16, 271–286.

Mollick, E., 2014. The dynamics of crowdfunding: An exploratory study. J. Bus. Ventur. 29, 1–16. https://doi.org/http://dx.doi.org/10.1016/j.jbusvent.2013.06.005

Schwartz, S.H., 1994. Are There Universal Aspects in the Structure and Contents of Human Values? J. Soc. Issues 50, 19–45. https://doi.org/10.1111/j.1540-4560.1994.tb01196.x

Sheeran, P., 2002. Intention—Behavior Relations: A Conceptual and Empirical Review. European Review of Social Psychology, 12(1), pp.1–36. Available at: http://dx.doi.org/10.1080/14792772143000003.

Sorenson, O., Assenova, V., Li, G.-C., Boada, J., Fleming, L., 2016. Expand innovation finance via crowdfunding. Science (80-. ). 354, 1526 LP – 1528.

Stern, P.C., 2000. New Environmental Theories: Toward a Coherent Theory of Environmentally Significant Behavior. J. Soc. Issues 56, 407–424. https://doi.org/10.1111/0022-4537.00175

Testa, S. et al., 2019. The role of crowdfunding in moving towards a sustainable society. Technological Forecasting and Social Change, 141, pp.66–73. Available at: http://www.sciencedirect.com/science/article/pii/S004016251831953X.

Webb, T.L. & Sheeran, P., 2006. Does changing behavioral intentions engender behavior change? A meta-analysis of the experimental evidence. Psychological bulletin, 132(2), pp.249–268

Photo by Ian Schneider on Unsplash

The rise of social media bots – how do they work, and how can you spot them?

By Daniel Lundgaard

Bots and their impact on online conversations is rapidly becoming an important problem on social media. If we look at the conversation around the current Coronavirus pandemic, somewhere between 45% to 60% of the accounts on Twitter that promoted disinformation were identified as bots, in the anti-vaccine debate researchers have found that bots are used to “weaponize” online health communication and create discord, and in the climate change debate research suggests that about a quarter of all tweets are produced by bots.

These bots are used in a wide range of misinformation “strategies”. Based on findings from my own research and a review of current research on the topic, I have summarized what I perceive as the three main “strategies” where we know that bots have been used:

Amplifying certain opinions. The simplest strategy where bots have been used is in efforts to amplify a specific opinion, often by continuously re-tweeting the same tweet or link, or by only endorsing the shared posts of people with similar interests.

Flooding the discourse. Malicious actors often seek to increase confusion and challenge the current status quo e.g. the scientific consensus that climate change is man-made. In this strategy, bots are used to spread large volumes of information and start multiple conversations (often covering both sides of the debate), which makes it easier to question the current consensus. A similar tactic is as often seen in disinformation campaigns where large amounts of “fake news”-outlets create a new media ecosystem, and because of the increased volume of information, the voice of the validated outlets is “drowned”, which empowers the fake news outlets.

Linking issues to current tensions. Efforts to link debates to current tensions seek to polarize opinions and cause divide as seen within the vaccine debate where a debate was associated with current racial/ethnic divisions. Here bots are mainly used to either explicitly make the connection in their own tweets, or by commenting on content shared by others, suggesting the presence of a link to certain socioeconomic tensions.

With these strategies in mind identifying the users that in reality are bots seems like a crucial task. However, detecting and adequately handling these bots has proven to be a challenge for the major social networking sites such as Facebook and Twitter.

Nonetheless, after reviewing current tools made available for bot detection, current research on the topic and my own findings from an analysis of roughly 5 million tweets about climate change, I have identified a few tips that might help you to spot these bots – and potentially their impact on the conversation. For this list, I have left out bot-detection approaches that are based on reviewing patterns not normally visible to most users e.g. network features detection if the same group of users follow and re-tweet/like another group of users with similar language and message.

The user profile

Reviewing the user profile appears as one of the best ways for “normal” users to detect a bot. The most simple indicators could be a missing profile picture, however sophisticated bots might use stolen photos and here a quick “reverse image search” (right-clicking on the profile image and “search google for image”) might reveal something about the source of the image e.g. that it is taken from someone else. A generic (or poorly worded) profile description might also be an indicator, and in my own research I have found that reviewing the content of user profile descriptions is even better than reviewing the content of the tweets shared on a specific topic for predicting opinions.

Different or “stiff” language

The conversation on Twitter is often informal and people often use abbreviations or structure their sentences differently, which can be difficult to copy. As a result, bots might appear mechanical or rigid in its language – often returning to the same topic, share the same link over and over again, or returning to a topic that should have outlived the rather short life-cycle of some topics on Twitter.

Lack of humor

Granted, everyone misunderstands a joke sometimes and people can have trouble with understanding sarcasm. Because of this, understanding humor, especially sarcasm, also remains one of the major challenges for bots to both understand but also respond accordingly. This is particularly relevant on Twitter, where conversations may refer to shared understandings, inside jokes or memes used in a certain way within a community, which even sophisticated bots may have trouble understanding and adapting to.

Temporal behavior

Reviewing past activity, in particular with focus on patterns in temporal behavior might also be useful e.g. by spotting that a user seems to tweet at the same hour every day if it shares multiple tweets pr. Minute, or if the user immediately retweets or comments on other posts, which can be an indicator of an automated and pre-defined response.

It is important to acknowledge that not all bots are seeking to manipulate political conversations on social media. However, while some bots definitely are created for noble purposes, bots are increasingly becoming an important tool for various (potentially malicious) actors and their efforts to shape conversations on social media – especially Twitter. As a result, we, as a society needs to become better at detecting bots and limiting their power to shape the online debate, and I hope that by reading this blog I might have broadened your understanding of bots – and hopefully you have picked up a few tricks to spot potential bots appearing in your Twitter feed.

About the author

Daniel Lundgaard is a PhD Fellow at the Department of Management, Society and Communication at Copenhagen Business School. His research investigates how communication on social media (e.g. the use of emotions, certain forms of framing or linguistic features) shapes the ways we discuss and think about organizational and societal responsibilities.

Photo by ?? Claudio Schwarz | @purzlbaum on Unsplash

Fresh Air: An Impact Story

By Lara Anne Hale

What do fresh air, canaries, and research all have in common? Academics often humbly conduct and publish research, hoping but not knowing if it had any impact on society (we hope very strongly!). This becomes even more bewildering when it comes to the advent of research impact metrics, such as with the UK’s Research Excellence Framework (REF) (UKRI, 2020). It is a rare and wonderful occasion in which one can not only bear witness to impact but actually physically touch it. As an industrial researcher with CBS and the VELUX Group, I am often moving between theory and practice, but the tale of an innovation process stands out. This impact story is the story of how research became related — albeit several steps removed — to the development of an innovative product, AirBird®, co-created by GXN, the VELUX Group, and Leapcraft. Moreover, it is the story of inspiration in practice, a breath of fresh air in the academic realm.

The academic story starts with a group of nine researchers. The ‘Smart Buildings and Cities’ research group is composed of nine industrial PhDs and postdocs employed in diverse Danish organizations and universities, housed in the BLOXHUB Science Forum and supported by Realdania and the Danish Innovation Fund. Some of us are social scientists engaging with engineering (that would be me), some are architects engaging with computer science, and yet others are engineers conducting social research. I’ve never seen such a mad mess of transdisciplinarity, and it’s beautiful (and also very much guided by our Science Forum coordinator, Pernille Berg).

The innovation process parallels the fourth research case I have been building to better understand and theorize business model innovation for smart technology in the building industry. This case concerns indoor climate data-driven building renovations as a potential business model and involves collaboration among CBS and the VELUX Group (the research), Kokkedal Skole (the building), and Leapcraft (the technology). Fredensborg Kommune has allotted nearly 1 billion DKK (120 million euro) to the improvement of its schools in a program called ‘Fremtidens Folkeskoler’ (Primary Schools of the Future); and it is kicking off the program with an investment of over 35 million DKK (4 million euro) in renovations at Kokkedal S kole. Prior to renovations, we needed to answer the questions: How is the building being used now? What is the indoor climate like? How do teachers and students interact with space? And then we can compare the data post-renovation. This kind of research, as it turns out, is especially timely, given the Danish government’s commitment of 30 billion DKK for sustainable housing renovations.

**Kokkedal Skole**
Image by *Lara Anne Hale*

The Kokkedal Skole project is a fascinating one to discuss with others, given the visionary leadership of their principal Kirsten Birkving and excellent building management of their facilities manager Lars Høgh-Hansen. They have in fact been featured on CNN Business for bringing new technology into the classroom, namely Leapcraft’s AmbiNode sensors and SenseMaking tool, the latter having been developed by VELUX based on the Green Solutions House project. Two of the Science Forum group’s companies, GXN and the VELUX Group, started to take discussions at length about the emerging findings on health in buildings, the invisibility of indoor climate, and the need for a simple alert when the situation is dangerous. They posed the question, is it possible to make an indoor health equivalent of the canary in the coal mine, who would start tweeting to coal miners when in contact with dangerous air?

Early in 2019 these talks came to fruition when Realdania invited applications for seed funding to research group members interested in collaborative innovation. This led to the Smith Innovation-coordinated workshop “The Canary in the Goalmine” with the VELUX Group and GXN working on the goal of defining how the ‘canary’ would look like, and – based on the research at Kokkedal Skole and renovation challenges presented by the Student and Innovation House – how it would function. A year later, I am working with VELUX and Leapcraft to finalize the one-year monitoring report from Kokkedal Skole, and AirBird® is ready to hit the shelves. The concept is simple and beautiful, just like the bird: when the CO₂ levels indicate unhealthy air, AirBird sings a bird song to let its users know they should bring in some fresh air; which TV2 Lorry featured at Kokkedal Skole on the 25^th of May. The AirBird® has been ideated, designed and developed in co-creation between GXN, VELUX Group and Leapcraft.

**Airbird introduction**
Image by *Lara Anne Hale*

Although the development of AirBird® does not tell the story of sustainability dynamics within innovation ecosystems (Oskam et al., 2020), nor the story of smart technology-facilitated business models for health and well being (Laya et al., 2018) – two examples of academic work that resonate with my research – it does challenge the idea that business model innovation precedes product innovation. Nudging tools like AirBird® may stimulate awareness and behavioural changes that anticipate business opportunities for a healthy indoor climate. Further, serendipitous product innovations may serve as artifacts embodying value negotiation, the foundations of business model innovation.

But ultimately, the AirBird® story is attractive because it presents impact that is tangible. And whereas the physical product is the most tangible of all, this innovation has had other impacts as well: collaborative innovation experience among the organizations involved; encouragement within the Science Forum of the value of transdisciplinary research; and the need to face directly the tensions between the academic and practice worlds. For my part, it’s uncomfortably different from the impact implied in academic publications and absolutely refreshing — something fresh air, canaries, and research should all have in common.

References

Laya, A., Markendahl, J., & Lundberg, S. (2018). Network-centric business models for health, social care and wellbeing solutions in the internet of things. Scandinavian Journal of Management, 34(2), 103–116.

Oskam, I., Bossink, B., & de Man, A.-P. (2020). Valuing Value in Innovation Ecosystems: How Cross-Sector Actors Overcome Tensions in Collaborative Sustainable Business Model Development. Business & Society, 000765032090714.

Rafaeli, Anat, & Pratt, Michael G. (2006). Artifacts and Organizations: Beyond Mere Symbolism. Mahwah: Lawrence Erlbaum Associates Inc,US.

UKRI (2020). REF Impact. Accessed 29 May 2020 from: https://re.ukri.org/research/ref-impact/

About the author

Lara Anne Hale – Ph.D., M.Sc., Assistant Professor, Industrial Postdoc Fellow with CBS and VELUX. Lara conducts transdisciplinary research on sustainability in the built environment, including aspects of digital transformations, circularity, user-centered design, and systems thinking. Her current project focuses on business model innovation for smart buildings in the BLOXHUB Science Forum ‘Smart Buildings & Cities’ research group, supported by the Danish Innovation Fund and Realdania.

Photo by Kinga Cichewicz on Unsplash

How to make food systems more resilient: Try Behavioural Food Policies

By Lucia A. Reisch

The vision of healthy and sustainable food systems that facilitate appropriate food choices by individuals is gaining momentum in practice and in the marketplace. As the single strongest lever to optimize both human health and environmental sustainability, the food choices we make matter in multiple ways – for our bodies, the environment, and the economic and social fabric of societies. Acknowledging and actively harnessing co-benefits of “win-win diets” is a major focus of current food, farm, environmental, and health policy that aims to positively influence consumer behaviour. A behavioural turn in food policy that puts individuals and their choices at center stage holds promise for manifesting the vision of healthy and sustainable food systems.

As we collectively ponder lessons learned from the coronavirus pandemic, a key aspect will be to consider how to increase resilience of societies and economies in general and food systems in particular, to better endure a crisis in the future.

The Food and Agricultural Organization (FAO) defines resilience as ‘the ability to prevent disasters and crises as well as to anticipate, absorb, accommodate or recover from them in a timely, efficient and sustainable manner. This includes protecting, restoring and improving livelihood systems in the face of threats that impact agriculture, nutrition, food security and food safety.’ [1]

Food chains today are long and globalized, and retail systems are streamlined for efficiency with just-in-time inventories, all adding to the vulnerability of systems. While the basic food provision in Europe continued during the pandemic (not least due to the availability of local food chains), cracks appeared at the retail level with shortages of staples. Admittedly, many shortages were due to stockpiling by frightened people – a behavioural factor rather than a reflection of true supply shortages. One can speculate now that if the crisis were to continue, other dependencies (for instance, on mostly Eastern European farm workers for harvesting) will become obvious.

In a healthy and sustainable food system, the products that are grown, processed, and distributed are health-supporting, safe, environmentally and climate friendly; farmers and laborers work for fair wages under decent conditions; and on the demand side, equal and easy access to affordable, healthy, and sustainable diets as well as nutrition security are provided for today’s and future generations. This sounds like a utopia but it is our future.

The EAT Lancet Commission on Healthy Diets for Sustainable Food Systems recently defined a concrete healthy reference diet that, if applied, can be provided “for an anticipated world population of nearly 10 billion people by 2050 and still stay within a safe operating space on Earth” (Willett et al. 2019).

Balanced and sustainable food systems that stay within the planetary boundaries and provide a minimum level of safety, access, and equity are doubtlessly more resilient – i.e., more robust in times of shocks and crisis – than lean, efficiency-maximizing, far-flung global supply systems. The advantages and necessity of system resilience are likely to constitute one big learning from the pandemic.

Another big learning is that consumer-citizen behaviour is much more malleable and adaptive than many policymakers (and researchers) had thought. People are able and ready to quickly change deeply ingrained habits, adopt new practices (social distancing, home cooking), and adhere to new social norms (wearing masks, hand washing) if – important qualifier – the reasons seem (scientifically) sound, are limited to a bearable time span, and are well explained by a trustworthy government.

Some governments (Sweden, e.g.) rely on voluntary action and “nudging” alone; others (Germany, e.g.) combine harsh bans, intense risk communication, and behaviourally informed policies such as warnings, framing, priming, reminders, defaults, and boosts. We don’t know yet which strategies will work best, but it has already become clear that much can be achieved by using behavioural insights, calling on the responsibility of people, giving positive feedback and reminders, and harnessing the power of (dynamic) social norms and peer pressure.

In the words of the great Danny Kahneman: good policy needs to activate both types of people’s decision-making: the quick, intuitive, emotional “System 1” and the slow, cognitive, deliberate “System 2”.

It is not a new idea that insights into the biases and heuristics, the habits and motivations of consumers can be useful to design effective policies. This is the essence of the new field of Behavioural Public Policy that constitutes these days an International Association of Behavioural Public Policy. The evidence is increasing that a behavioural approach can indeed help design better food policies. What we call Behavioural Food Policy puts people’s needs, biases, and decisions at center stage, offering a specific behavioural lens to existing (hard and soft) policies that can make them more effective. It relies on governance processes that are based on empirical, often experimental testing, learning, and adapting. Public deliberation and participation in these processes help consumer-citizens understand and eventually approve of the policies. This potential of behavioural policies to shift habits and food demand is under-utilized but growing.

This approach is echoed by the global climate change community in the Intergovernmental Panel for Climate Change (IPCC) upcoming 6^th Assessment Report. [2] The report identifies two major behavioural changes that substantially mitigate greenhouse gas emissions: avoiding food waste and dietary shifts to plant-based nutrition. As to the former, simple behaviour such as meal planning and creative use of leftovers can help reduce food waste on the individual level; retail can adjust its marketing, and regulators can improve the handling of expiration labels and best-before dates. Regarding the latter, reducing (mainly ruminant) meat consumption and substituting animal protein with field-grown protein are seen as major steps. A diet light in meat is better for one’s health, leads to greater animal welfare, helps reduce food-borne diseases and food crisis, and produces less greenhouse gas emissions. Because individual choices are the basis of any healthy and sustainable food system, understanding and influencing consumer behaviour is a promising route to achieving sustainability, resilience, and healthfulness of our food systems and society generally.

References

[1] http://www.fao.org/emergencies/how-we-work/resilience/en/.

[2] The author is a contributing author to this IPCC AR6 chapter.

About the author

Lucia A. Reisch is Professor of consumer behaviour and consumer policy at the Department of Management, Society and Communication (MSC) within the CBS Sustainability. Her research focuses on behavioural economics, behavioural public policy, sustainable consumption (in particular, energy, food and health, active mobility and fashion), intercultural consumer behaviour, consumers and digitization, as well as consumer policy.

More about coronavirus pandemic on Business of Society blog:

The Coronavirus Pandemic – and the Consequentiality of Metaphors

Sustainable Development, Interrupted?

The Political Economy of the Olympics – Misconceptions about Sustainability

Supply Chain Responsibilities in a Global Pandemic

A Green and Fair COVID-19 Recovery Plan

In Movement from Tanzania to Northern Italy to Denmark

Photo by Chad Stembridge on Unsplash

Normalizing Sustainability

By John Robinson, University of Toronto

We often hear the argument that, given the urgency of climate change and sustainability concerns, significant changes to individual behaviours and lifestyles are required. This has led to a wide array of public education and climate literacy campaigns aimed at changing such behaviours. In this blog, I will argue that some fairly strong research findings suggest that such campaigns are of limited value in influencing behaviour change, and moreover that focusing on changes in individual behaviours may be distracting us from much more significant possible steps.

There are many models of behaviour change in the literature, and of the relationships among values, attitudes, intentions and behaviours. It is probably fair to say that many of the most influential conceptualizations of behaviour change assume that most individual behaviours are the result of some form of conscious decision-making about desirable outcomes based in turn on some assessment of the consequences of different courses of action. [1]

On this view, people act in environmentally irresponsible ways because they lack the information they need to make better decisions. Such an ‘information deficit’ model leads in turn to what we might call a persuasive communication approach to stimulating behavior change, which assumes that providing more information as to those consequences, through information provision, educational programs, and science and climate change literacy campaigns, will lead to better and more environmentally responsible decision-making [2].

Unfortunately, the relevant research on the relationship between information and behaviour shows that persuasive communication approaches based on an information deficit model are not only ineffective in changing behaviours in the desired direction [3], but may in fact have perverse consequences.

Studies of the relationship between knowledge and attitudes have found that increased science literacy does not lead people to become more concerned about climate change, but on the contrary, actually increases polarization on this issue[4]. It seems that educating people on the science of climate change, or other sustainability problems, will not lead them to change their views on the problem itself, but instead may further reinforce their prior position.

In fact there is evidence from many fields of study, going back multiple decades, that information is only weakly connected to behaviour change. Studies of the effectiveness of energy efficiency programs [5], research in health promotion[6], or community-based social marketing[7], over many decades have all reached similar findings. So widespread are these findings that it can be said, in the words of my colleague David Maggs that:

The best evidence that information does not change behaviour is that we have decades of evidence in multiple fields that it does not do so, yet we continue to create and implement pubic education campaigns intended to change individual behaviour.

While this is bad enough, the problem gets worse.

It turns out that it is not clear that changing individual consumption behaviour is the right goal anyway. A number of studies have shown that there is no significant difference in either the carbon or ecological footprint of individual who cares deeply about environmental issues and behave accordingly, and those who do not care at all and do not behave in environmentally responsible ways [8]. The reason is that the ecological and carbon footprints of individuals are determined much more by their income than by the degree to which they choose more environmentally appropriate behaviours such as recycling or buying sustainable products.

So we seem to be in a depressing circumstance: information and literacy programs won’t change behaviour; moreover, it wouldn’t much matter, in term of overall environmental impact, if they did.

But rather than ignoring this evidence and intensifying our efforts to educate people into sustainability, or else throwing up our hands and retreating into apathy, perhaps a more fruitful approach is to reframe the original questions and ask whether a different approach altogether might be useful, on both these questions.

With regard to information provision, instead of a persuasive communication approach, it might be more useful to take what we might call an emergent dialogue approach [9]. Instead of assuming that we know the right answers and we have to get those answers into the heads of our audience, perhaps we need to listen as much as we speak, and to find two-way approaches to dialogue in order to co-create narratives with citizens that describe our circumstances in ways that are more faithful to the disparate views and values of different groups and that thereby offer the possibility of finding common ground on controversial societal problems.

The goal switches from a focus on changing behaviours to a focus on trying to create shared narratives, in order to better inform collective decision-making processes, and to foster social mobilization in support of policy change.

With regard to individual behaviour change, perhaps we need to rethink our ideas about change itself. As long as sustainability requires change, then it is fragile because human activities and practices will often snap back to prior unsustainable normals. Instead, we need to normalize sustainable practices, so that they become the default, not the required change [10]. In this connection, it might be useful to move from a focus on conscious individual behaviour and pay more attention to more collective processes of activity. There has been an upsurge of work on social practice theory approaches to human activity, which suggests that much of that activity is unconscious and collective, connected to social processes and relationships, and social and cultural norms [11]. Can a focus on collective social practices lead us towards processes of normalization of sustainability?

Following this line of thought, it is not about encouraging behaviour change instead of technological change, but of exploring how the overall socio-technical system itself, including powerful social norms, influences and is influenced by individual choices and actions, including political demands or support for changes in collective decisions. Perhaps we need to try to create ‘virtuous cascades’ ¹² of positive normative change and identify leverage points that will allow us to foster and encourage more sustainable outcomes. Trying to convince people to change their lifestyles in the absence of change in the overall system will be ineffective and may even work against larger system change.

About the author

John Robinson is a Professor at the Munk School of Global Affairs and Public Policy and the School of the Environment at the University of Toronto. He is also an Adjunct Professor at Copenhagen Business School. His research focuses on the intersection of climate change mitigation, adaptation and sustainability; the use of visualization, modelling and citizen engagement to explore sustainable futures; sustainable buildings and urban design; the role of the university in contributing to sustainability; creating partnerships for sustainability with non-academic partners; the history and philosophy of sustainability; and, generally, the intersection of sustainability, social and technological change, ways of thinking, and community engagement processes.

References

[1] E.g. see Ajzen, I. (1991). The theory of planned behavior. Organizational Behaviour and Human Decision Processes, 50(2), 179-211

[2] Masud, M.M., Al-Amin, A.Q., Junsheng, H., Ahmed, F., Yahaya, S.R., Akhtar, R., & Banna, H. (2016). Climate change issue and theory of planned behaviour: relationship by empirical evidence. Journal of Cleaner Production, 113, 613-623. See the discussion in Kollmuss, A., & Agyeman, J. (2002). Mind the Gap: Why Do People Act Environmentally and What are the Barriers to Pro-Environmental Behaviour? Environmental Education Research, 8(3): 239-260.

[3] See, for example, Kollmuss & Agyeman, op. cit.; Sheeran, P., & Webb, T.L. (2016). The Intention-Behaviour Gap. Social and Personality Psychology Compass, 10(9), 503-518; Ungar, S. (1994). Apples and oranges: probing the attitude-behaviour relationship for the environment. Canadian Review of Sociology, 31(3); Steg, L., Perlaviciute, G., & van der Werff, E. (2015). Understanding the human dimensions of a sustainable energy transition. Frontiers in Psychology, 6; Owens, S. 2000. `Engaging the public’: information and deliberation in environmental policy, Environment and Planning A, 32, pages 1141-1148; Shove, E. 2010. Beyond the ABC: climate change policy and theories of social change, Environment and Planning A, 42, 1273-1285.

[4] Kahan et al, (2012) The polarizing impact of science literacy and numeracy on perceived climate change risks, Nature Climate Change, 2(10), pp.732-735; Drummond, C., & Fischhoff, B. (2017). Individuals with greater science literacy and education have more polarized beliefs on controversial science topics, Proceedings of the National Academy of Sciences, 114(36), 9587-9592.

[5] Stern, P. C. 1986. “Blind spots in policy analysis: What economics doesn’t say about energy use.” Journal of Policy Analysis and Management, 5(2), 200-227; Hirst, E. (1990). Progress and Potential in Evaluating Energy Efficiency Programs. Evaluation Review, 14(2), 192–205; Robinson. J. (1991). “The proof of the pudding: Making energy efficiency work.” Energy Policy, 19(7), 631-645; Abrahamse, W., Steg, L., Vlek, C., & Rothengatter, T. (2005). A review of intervention studies aimed at household energy conservation. Journal of environmental psychology, 25(3), 273-291.

[6] Green, L. W., & Kreuter, M. W. (1993). Health promotion planning: An educational and ecological approach. McGraw-Hill

[7] McKenzie-Mohr, D. (2011). Fostering sustainable behavior: An introduction to community-based social marketing. New society publishers.

[8] Csutora, M., 2012. One more awareness gap? The behaviour–impact gap problem. Journal of Consumer Policy, 35(1), pp.145-16 3; Tabi, A., (2013). Does pro-environmental behavior affect carbon emissions. Energy Policy, 63, pp.972-981; Moser, S., & Kleinhückelkotten, S. (2018). Good intents, but low impacts: diverging importance of motivational and socioeconomic determinants explaining pro-environmental behavior, energy use, and carbon footprint. Environment and Behavior, 50(6), 626-656.

[9] Robinson, J. (2004) “Squaring the Circle: Some thoughts on the idea of sustainable development”, Ecological Economics, 48(4): 369-384; Antle, A. N., & Robinson, J. (2011). Procedural Rhetoric Meets Emergent Dialogue: Interdisciplinary perspectives on persuasion and behavior change in serious games for sustainability; Bendor, R., Lyons, S. H., & Robinson, J. (2012). What’s there not to ‘like’? sustainability deliberations on facebook. JeDEM-eJournal of eDemocracy and Open Government, 4(1), 67-88; Maggs, D. and Robinson, J. (2016) “Recalibrating the Anthropocene: Sustainability in an Imaginary World”, Environmental Philosophy, 13(2), 175-194; Robinson, J. and Cole, R. (2015) Theoretical underpinnings of regenerative sustainability, Building Research & Information, 43(2), 133-143; Westerhoff, L. and Robinson, J. (2013) “’Practicing’ narratives: exploring the meaning and materiality of climate change”, Proceedings of Transformation in a Changing Climate, June 19-21, 2013.

[10] John Robinson, “Normalizing Sustainability: from behavior change to metamorphosis”, Keynote Presentation at IST2019: Accelerating sustainability transitions: Building visions, unlocking pathways, navigating conflicts, Ottawa, Jun 25 2019

[11] Gram-Hanssen, K. & Georg S. 2017. Energy performance gaps: promises, people, practices, Building Research and Information 46(1), 1-9; Strengers, Y., & Maller, C. (Eds.). (2014). Social practices, intervention and sustainability: Beyond behaviour change. Routledge; Shove, E., Pantzar, M., & Watson, M. (2012). The Dynamics of Social Practice. London, UK: SAGE Publications; Hargreaves, T. (2011). Practice-ing behaviour change: Applying social practice theory to pro-environmental behaviour change. Journal of consumer culture, 11(1), 79-99; Reckwitz, A. (2002). Toward a theory of social practices: A development in culturalist theorizing. European journal of social theory, 5(2), 243-263.

[12] Homer-Dixon, T. Coronavirus will change the world. It might also lead to a better future. The Globe and Mail, Mar 5, 2020 https://www.theglobeandmail.com/opinion/article-the-coronavirus-is-a-collective-problem-that-requires-global/

Photo by Francesco Gallarotti on Unsplash

Sustainable Consumer Behavior: Go Big or Go Home?

By Laura Krumm

In recent years, news on issues such as climate change, environmental degradation and plastic pollution was almost inescapable. At least in Europe, newspapers reported on environmental topics regularly, political discussions often revolved around greenhouse gas emissions or environmental policy, and sustainability content creators gained large numbers of followers on social media with tips on package-free grocery shopping and vegan recipes. Additionally, with Fridays for Future, environmental issues inspired one of the largest youth movements to date. It is fair to say that almost everyone is talking about the environmental issues we are currently facing.

The role of consumption

With almost everyone talking about environmental issues, most have understood that our consumption behavior in the industrialized world is a major cause of environmental problems. After all, the issue of climate change is an issue of consumption. Almost three-quarters of greenhouse gas emissions originate from household consumption (1). A change in consumption behavior, therefore, is deemed necessary to have a chance of mitigating climate change.

Even though environmental beliefs and values are increasing, consumers often do not follow through and translate their attitudes into environmental behavior. Many scholars are concerned with this phenomenon, often termed attitude-behavior gap or value-action gap (2, 3). This gap is frequently calculated by subtracting the market share of sustainable goods, e.g., organic produce, from the percentage of consumers having an intention to buy those products. The estimated size of the gap ranges mostly around the 30% mark (4, 5).

If consumers acted according to their attitudes, the market share of sustainable products would, therefore, increase by 30 %, which would certainly have a substantial environmental impact. Is it, however, enough to focus on closing the attitude-behavior gap? Unfortunately, no.

How sustainable are we really?

Behaviors commonly considered as sustainable, such as bringing our own reusable shopping bag instead of using the plastic bags provided by the store, might not have the big environmental influence we think they have. Bilharz and Schmitt have termed such actions as the “peanuts of sustainable consumption” (6). Often, consumers that identify themselves as “green” have similar ecological footprints to consumers who do not identify themselves as “green” (6, 7).

A green self-image, although associated with higher rates of some environmental behaviors, is therefore often misleading.

This can be problematic. If consumers with high attitudes towards sustainable consumption overestimate their own positive impact and already perceive themselves as sustainable after performing relatively low-impact sustainable behaviors, such as stopping the water while brushing their teeth or using a reusable tote bag for shopping, the motivation for bigger steps might be reduced. While these small behaviors are important actions and first steps in the right direction, they are only that: first steps. To mitigate climate change and solve other environmental issues, more drastic measures will be necessary.

Focus on high-impact behaviors instead of low-hanging fruits

Some researchers, therefore, suggest to reduce the focus on the intent-based view of sustainable behavior (e.g., environmental attitudes or motivations) and rather take a more impact-based perspective (8). In that case, the actual environmental effects of certain behaviors and actions are assessed in the form of, e.g., emitted greenhouse gases or ecological footprint calculations. An impact ranking of sustainable behaviors can then give insightful information, which behaviors to give priority.

A recent study found, e.g., that a change towards a vegan diet has the potential to mitigate up to 14% of European carbon emissions, whereas a change towards exclusively purchasing organic food has the potential to mitigate 2% (9). While this certainly does not mean that organic food products are not important and we should stop buying them, a focus on them will not suffice to reduce our greenhouse gas emissions significantly.

This change in perspective is not only important for consumers themselves, but also for companies, research and policy. While, e.g., an EU-wide ban of single-use plastic or company initiatives to eliminate plastic bags in some supermarkets have a considerable positive impact on the problem of plastic pollution, it is by far not enough.

Even though the probable consequences of climate change are well known and already start to become apparent, countries and governments still fail to adopt effective measures to reduce greenhouse gas emissions (10).

An enhanced focus on high-impact behaviors and actions can help political institutions, research organizations and consumer education strategies achieve their sustainability goals. While it is certainly necessary to address small and easily implementable changes, they should not distract us from tackling the big consumption challenges (11).

About the author

Laura Krumm is a PhD fellow at the Department of Management, Society and Communication and part of the Consumer & Behavioural Insights Group at CBS Sustainability. Her research interests lie in the fields of sustainable consumption behaviour and policy.

References

(1) Hertwich, E.G. and Peters, G.P., 2009 – Carbon Footprint of Nations: A Global, Trade-Linked Analysis, in: Environmental Science and Technology, 43(16), 6414-6420.

(2) Kollmuss, A. and Agyeman, J., 2002 – Mind the Gap: Why Do People Act Environmentally and What are the Barriers to Pro-Environmental Behavior?, in: Environmental Education Research, 8(3), 239-260.

(3) Huddart Kennedy, E., Beckley, T.M., McFarlane, B.L. and Nadeau, S., 2009 – Why We Don’t “Walk the Talk”: Understanding the Environmental Values/Behaviour Gap in Canada, in: Human Ecology Review, 16(2), 151-160.

(4) Carrington, M.J., Neville, B.A. and Whitwell, G.J., 2010 – Why Ethical Consumers Don’t Walk Their Talk: Towards a Framework for Understanding the Gap Between the Ethical Purchase Intentions and Actual Buying Behaviour of Ethically Minded Consumers, in: Journal of Business Ethics, 97(1), 139-158.

(5) Young, W., Hwang, K., McDonald, S. and Oates C.J., 2010 – Sustainable Consumption: Green Consumer Behaviour when Purchasing Products, in: Sustainable Development, 18(1), 20-31.

(6) Bilharz, M. and Schmitt, K., 2011 – Going Big with Big Matters, in: GAIA, 20(4), 232-235.

(7) Gatersleben, B., Steg, L. and Vlek C., 2002 – Measurement and Determinants of Environmentally Significant Consumer Behavior, in: Environment and Behavior, 34(3), 335-362.

(8) Moser, S. and Kleinhückelkotten, S., 2018 – Good Intents, but Low Impacts: Diverging Importance of Motivational and Socioeconomic Determinants Explaining Pro-Environmental Behavior, Energy Use, and Carbon Footprint

(9) Vita, G., Lundström, J.R., Hertwich, E.G., Quist, J., Ivanova, D., Stadler, K. and Wood, R., 2019 – The Environmental Impact of Green Consumption and Sufficiency Lifestyles Scenarios in Europe: Connecting Local Sustainability Visions to Global Consequences, in: Ecological Economics, 164, 106322.

(10) UN Environment Programme, 2019 – Emissions Gap Report

(11) Centre for Behavior & the Environment, 2018 – Climate Change Needs Behavior Change: Making the Case For Behavioral Solutions to Reduce Global Warming

Photo by Markus Spiske on Unsplash

AI: A new culprit in missing the sustainability mark?

Lara Anne Hale

Artificial intelligence (AI) is championed as being the future driver of business: everything from human resources to surgery is supposed to become perfectly effective. But what if AI actually becomes a culprit blocking the way forward for sustainability?

Bias in AI

An example, to get us started:

Bob and Joe are colleagues. They are work friends, and they share many of the same worldviews – as well as biases. They are jointly programming the algorithm for machine learning that will train an AI to behave as they expect it should. In a number of ways that are difficult to detangle: Bob and Joe’s Biases → Machine Learning → AI.

In a recent article in The New York Times, AI professionals explored how to push back against social bias, as it “can be reflected and amplified by artificial intelligence in dangerous ways, whether it be in deciding who gets a bank loan or who gets surveilled.” As Ola Russakovsky points out in the article, there are all kinds of bias in AI because it reflects the way our world already is. I’m here to point to one of those different kinds of bias – more specifically, institutional bias.

AI for Sustainable Building

In my day-to-day research, I’m regularly confronted with one such institutional bias in the building industry: cost savings and energy efficiency are more important than human well being. This long standing bias persists, despite whole cities filled with buildings that are harmful to health, hardly last beyond 25 years, and still do not achieve the desired energy performance. In trying the avoid dealing with lovely but complicated human beings, the building industry gets in the way of sustainable building.

After all, it’s only human. Or is it? There is increasing pressure for AI to be integrated into systems for both building construction and facilities management, though both applications perpetuate the bias for economic and energy efficiencies. Not surprisingly, this is what AI is meant for: to do what we already do, but better. So how can we innovate AI that does something that we don’t already do – for example, to consider more comprehensive sustainability?

Urban Tech and Co-Innovation

Yet, society is not fixed, and there are inspiring efforts to continuously innovate our industrial systems by bringing together established businesses and startups for problem solving. One well known example of this is the BMW Startup Garage in Germany. Last year, we saw the advent of such a program for the built environment here in Copenhagen, called Urban Tech, which will run three cycles from 2019 through 2021.

In the process of working with the 2019 VELUX Group – Foobot team on innovating AI for better indoor air quality, I was surprised to find that same institutional bias reflected from Foobot. The implications were that instead of training the AI to respond to people, their health and their needs – as academic and industrial research have indicated is critical for sustainable building – they focused the AI on energy efficiency. But ultimately, I found this to be an exercise of optimism.

Co-innovation gave us the opportunity to unhatch hidden elements of AI bias and to work together to figure out the next steps forward for bringing digitization and sustainability together in the built environment.

Sustainability Training for AI

Although there are calls to remove AI bias and to set up regulatory mechanisms to control for it, I wonder if either of these are feasible (a pondering shared in this WIRED Magazine article). AI is, after all, what we make of it. Though we cannot do what is not feasible, we can ponder what is desirable. In line with the voluntary integration of sustainability into corporate reporting, as well as building standards, what if we integrated sustainability considerations into frameworks for training AI?

Well, an android can dream…

Join and discuss these and related AI topics at the Reshaping Work’s AI@Work Conference in Amsterdam 5-6 March 2020. Lara will be presenting her work on “Faster horses: Collaborative AI innovation between incumbents and startups.”

About the author

Lara Anne Hale, Ph.D., M.Sc., Assistant Professor, Industrial Postdoc Fellow with CBS and VELUX. Lara conducts transdisciplinary research on sustainability in the built environment, including aspects of digital transformations, circularity, user-centered design, and systems thinking. Her current project focuses on business model innovation for smart buildings in the BLOXHUB Science Forum ‘Smart Buildings & Cities’ research group, supported by the Danish Innovation Fund and Realdania.

Female entrepreneurs & reward-based crowdfunding: Offline inequality and online equality?

By Kristian Roed Nielsen

Traditional sources of entrepreneurial finance tend to favor men, while female entrepreneurs are often bypassed. Thielst, G.H. (2019), for example, found that Danish investors tend to be more skeptical towards female entrepreneurs and place higher demands on them for details, numbers, and forecasts. However, with the emergence of reward-based crowdfunding we are witnessing an outcome contrary to this offline gender inequality, that women are systematically more successful than men (Gorbatai & Nelson 2015, p.1). Let us explore why.

Reward-based crowdfunding – how does it work?

Reward-based crowdfunding is an increasingly common source of finance for a diversity of entrepreneurs and creative projects, where individuals invest a pre-defined amount of money with the expectation that if successfully funded, they will receive a tangible (but non-financial) reward often in the form of a product or service.

In reward-based crowdfunding hitting ones funding target is thus of critical importance as the campaign, as otherwise the pre-invested (or pledged) money would be returned to the backers.

Reward-based crowdfunding, like other forms of crowdfunding, is thus dependent on the successful interaction between a number of actors including the central organizing platform, a number of content providing campaigns, and a large diverse group of funders/backers.
(Nielsen 2018)

The growth of reward-based crowdfunding has moved it beyond a niche phenomenon exemplified by the fact that in the past decade it has resulted in more than $10 billion in pledges from over 75 million backers (Blaseg et al. 2020) and has thus rightly captured researcher attention.

Female founders and reward-based crowdfunding

A diversity of studies into the antecedents of success in a reward-based crowdfunding context have all observed similar results – that women are significantly more likely to achieve their funding goals as compared to men (see Gorbatai & Nelson 2015; Marom et al. 2016; Greenberg & Mollick 2016; Nielsen 2019). Some of the reasons we have uncovered thus fare include differences in funding goals, communication styles, and activist female backers.

Both my recent research into crowdfunding in Denmark (Nielsen 2019) and the work by Marom et al. (2016) find that women tend to ask for less and thus also subsequently raise less through successful campaigns as compared to men.

For example, in a Danish context women had an average funding goal of 23.746,00 DKK as compared to men who set it at 27.960,00 DKK. Men therefore also experienced, when successful, more financial support earning on average 6.000,00 DKK more than women.

However, these differences in funding goals also mean the women are significantly more likely to actually hitting their funding goal and thus actually being financed. Women’s financial expectations of what they can raise through crowdfunding thus seem better aligned with reality. However, these differences in funding goals only account for parts of the overall picture.

In addition, Gorbatai & Nelson (2015) found that the communication style of women on crowdfunding platforms trended towards more inclusive and emotional language which in turn is positively associated with funding success. They thus propose that “the institution of crowdfunding may reduce gender inequalities in the fundraising arena by benefitting the communication style of women.” (Ibid, p.1).

Finally, both Marom et al. (2016) and Greenberg & Mollick (2016) found that female backers showed a significant preference for supporting women-led projects. Moreover, Greenberg & Mollick (2016) suggest results from “activist choice homophily” where “women are more inclined to fund women entrepreneurs because of perceived shared structural barriers that come from a mutual social identity.” (Leitch et al. 2018, p.110). They find this trend especially strong in industries in which they are least represented (e.g. technology industry).

Reward-based crowdfunding favors female founders

Thus, unlike many other forms of financing (Sorenson et al. 2016), women appear to benefit from reward-based crowdfunding for the noted reasons: communication style, activist female backers and not least financial expectations that are better aligned with crowdfunding as a financing tool.

However, as with all other research, these initial findings are not universal nor have many of them been validated by follow-up studies and the results are therefore far from conclusive. Nonetheless, we can with a certain degree say that reward-based crowdfunding contrary offline source of innovation finance systematically favors female founders.

About the author

Kristian Roed Nielsen is Assistant Professor at Copenhagen Business School and visiting researcher at Mistra Center for Sustainable Markets at Stockholm School of Economics. His research focuses on consumer behaviour, crowdfunding, sustainable consumption & innovation and user innovation. He strives to examine what, if any, potential role the “crowd” could have in driving, financing and enabling sustainable entrepreneurship and innovation. Seeking to uncover what role the consumer could have in enabling and financing sustainable innovation.

More about crowdfunding

Reward-based Crowdfunding for Sustainable Entrepreneurs: A Practitioner’s Guide

Crowdfunding for Sustainability: Creating a platform for sustainable ideas

The Winners and Losers of Reward-based Crowdfunding

Photo by Authority Dental

Teaching (and doing) anthropology in a business school

By Matthew Archer

For a while now, the discipline of anthropology has studied relatively marginalized or dispossessed people and communities, often in developing countries or poor parts of developed countries. What this means is that anthropologists are often critical of powerful organizations like governments, banks, and multinational corporations.

For the past year, I have tried to integrate these critical perspectives into my teaching at Copenhagen Business School. Although CBS is not a typical business school in the sense that it is not primarily an MBA-granting institution, many of my students are pursuing careers in finance and consulting that are typical of business school graduates.

Challenging business students

For young professionals who have been trained in both their classes and their internships to simplify and synthesize difficult concepts, it can come as a bit of a shock to be asked to read an essay about climate change adaptation in Guyana or vanilla bean farming in Madagascar, and unpack the theories and methods to think about how they relate to questions of corporate sustainability and sustainable finance.

But while this may be challenging, I’ve found that students often find it exceedingly valuable.

One of the hardest things to deal with as a young professional is often the tension between personal, ethical values and the pressures a company puts on you to increase profits.

The critical theories that anthropologists use to make sense of the world help students make sense of their work, especially those who are planning to go into sustainability-related careers. Understanding the way humans have navigated the relationship between nature and culture across time and space turns out to be a key piece to the puzzle of how the financial system or tech companies mediate that relationship in more familiar contexts.

Critical thinking

Just as important, it helps them learn to critically reflect on their choices as consumers, investors, citizens, and the numerous other social roles they inhabit, roles that tend to evolve fairly dramatically over time (for example, after they graduate, after they get their first promotion, after they’ve started families, etc.). This kind of reflection is key to building a more just and sustainable society.

Thinking about the role of emotions in determining who has access to clean water in Bangladesh, for example, might seem far removed from concerns here in Denmark about pension funds and money laundering, but as we’ve learned in my classes over the past few semesters, emotions like hope and anxiety play a big role in the way financial resources are distributed and accessed.

Anthropological theories and methods might seem far removed from the quantitative approach to management that defines contemporary sustainability. But to understand the role of businesses in society, the study of societies has to be taken at least as seriously as the study of business, and anthropology is a fruitful way of introducing this perspective in business schools.

About the author

By the same author: Sustainability’s Infrastructure

Photo by José Martín Ramírez C on Unsplash

Football and the Meaning(lessness) of Management Concepts

By Esben Rahbek Gjerdrum Pedersen

Romanticized management concepts often seem to fall short in capturing actual management practices in today’s corporate world. Experiences from other types of organisations may help deepen the understanding of the concepts and the phenomena they are trying to portray.

Romanticized concepts

The management literature is full of concepts, which indicate passion, engagement and community. Internally, terms like corporate culture, values, karma, spirituality, passion and even love and religion express a deep symbiosis between the individual and the organization. Externally, corporate communication is soaked in references to sustainability, citizenship, social responsibility, and community engagement.

If we are to believe the “About Us” sections, corporations today are more about benevolence than business.

There is a problem though.

What happens if you compare the rosy picture of business with harsh business realities? One illustrative example is the talk about management commitment. How does it go along with the fact that the average tenure of CEOs is steadily decreasing? And how do you combine talks about commitment with the recurrent discussions about bonus schemes? It seems like an awful waste of money to approve exorbitant compensation packages to CEOs if they were driven solely by an inner sense of duty and dedication to the job.

What all these management concepts have in common is that they try to give business personality, heart, spirit, and soul.

However, if we are interested in concepts like commitment, passion, and loyalty, today’s corporate world is perhaps not always the right place to look. Probably more than ever before, these concepts seem more meaningful in private life and collectives rooted in the local community.

Like community football…

As part of a survey among Danish football clubs (supported by a UEFA research grant), I asked club representatives a simple, open question: – What is the main reason to be engaged in the club? A few quotations are found at the bottom of the text and well illustrate some of the differences between the corporate world and community sport. A few examples:

Stickiness. Commitment means being in it for the long haul. It is not unusual that volunteers are members of football clubs for 20, 30, and 40 years. When managers drift from one company to another, it serves as proof that they are committed to their career. Not the organisation.
Obligation. The quotations from the survey indicate that commitment to community sport is often linked to an obligation to support the local community and paying back for own experiences as active players.
Community. In community sport, commitment has roots. You are committed to something: – the sport, the people, the club, and the community. It is probably no coincidence that local club names usually refer to a city or a region, whereas the corporate names are mostly faceless abstractions referring neither to activity nor geography.

The real motives

The point is not that club volunteers are all saints dedicated to the greater good of society. Most volunteers probably start off with instrumental motives when they become engaged in club life; either because they play themselves and/or have children in the club. However, for some volunteers club life gradually becomes part of one’s identity and network.

The question remains, however, why the management literature seems so eager to wrap business in romantic rhetoric about commitment, loyalty, authenticity etc. when these concepts often seem to reflect what has been lost rather than what can be found in today’s corporate world. Of course, part of the management vocabulary can be passed off as organizational bullshit, but even the disregard of truth may reveal some truths about our society.

Maybe the abundance of romantic management concepts reflects a dream about relationships in a market characterized by transactions.

A seek for passion in a highly professionalized work life. Longing for a community when people have all become individuals. Whatever the reason, a researcher should restrict the use of concepts to organisations where they have not yet become emptied of meaning.

Like community football…

Table 1: Respondents about the main reasons for being active members of the football club (Translation from Danish)

– ”Make a difference in my local community and support my interest in grassroot football. Jeg am a club person and believe voluntary work should be a ”citizen duty” (…)”
– ”After a whole life as active in the club, also as trainer and board member, it was natural to continue (…) and give something back. I think it is fun to work with kids and people, who also give me a lot I can use in the work life”.
– ”I like the social life in the club and want to help others in getting the same experience”.
– ”I have played football from when I was a kid and had wonderful experiences that I like to hand over to the youth”
– ”Because I love football and like to give something back for all the years when I was more on the field than outside. Moreover, it is important that somebody do something in the associations in our community”.
– ”Because my kids play in the club and because I think you should make an effort in the associations in the city. And not least because I like to be part of making a difference in the local associations.
– ”Have been an active football player all my youth, where I met engaged trainers and leaders. So it is probably to give something back”
– ”Help our city in having a place where children, young and elderly can play football under good conditions”
– ”Funny, I have asked myself the same question:-) I have been an active player from when I was 8-9 years old, to league player, to old boys – so it is simply paid back time for all the experiences (…) to all the people who made it possible.”
– ”Always been involved in football. Somebody helped me when I was playing myself. Think that you have to give something back.”
– ”Payback to the club which has given me a lot of good experiences. My contribution to Danish associations – the voluntary brigade!”
– ”Lifestyle after more than 30 years of voluntary work. Help young athletes to get a good future. This has been my goal throughout the years and has given me a lot of good experiences”
– ”Voluntary work helps in creating a well-functioning local community. For children, it is important to promote active living. And it is also developing you personally. Unity and identity”
– ”For many years, I had children in the club and therefore I am involved in the work. I have enjoyed playing football and would like to give others the same experience. ”
”As a child, I experienced a lot of good things. Now when I have the opportunities, I feel obliged to give something back.” ”Have always been a volunteer in community sport and for more than 50 years. Nice to see things grow and do something good for a lot of people. Not least the social element of the club. And you get to know a lot of people and build some friendships for life”.
– ”Have been involved in football for 45 years. Good friends and good network. Be part of making a difference on a voluntary basis”.
– ”For 20 years, I have played football in the same club. To have a good club I also have to take responsibility”
– ”The community and the joy of working with other people who love football”.”Football has always meant a lot to me and I think you have an obligation to contribute to the continuation of football. Every community needs a football club. Everyone should have an opportunity to do team sport which can also be a great foundation for your future life.”

Learn more about our research on football and CSR here: https://www.tandfonline.com/doi/full/10.1080/16184742.2018.1546754

About the Author

Esben Rahbek Gjerdrum Pedersen is Professor at the Department of Intercultural Communication and Management at Copenhagen Business School. He researches CSR, Corporate Sustainability, Non-financial Performance Measurement, Supply Chain Management and Process Management.

By the same author: The Business (and Politics) of Business Cases

Photo by Click and Boo on Unsplash

How SDGs help us see buildings through a different lens

By Ingrid Reumert

Despite a lot of focus on climate change recently, the impact of one ‘hidden climate’ on people’s lives often goes unnoticed – the indoor climate. And the indoor climates in the buildings that we normally feel most comfortable in – our homes – are much worse than we are aware of.

Safe and sound at home?

Our homes are traditionally seen as places where we recharge our batteries. They are where we seek shelter and refuge from the hustle and bustle that we often experience in our everyday lives when away from them. As we wind down at the end of a busy day in the comfort of our homes, we take it for granted that we can relax, knowing that our health is not at risk when inside.

However, there’s increasing evidence that although we might arrive home safe and sound, the time we spend at home might not be safe and sound after all.

As ‘safe as houses’?

The saying ‘it’s safe as houses’, which is used to describe things as being completely safe, cannot be used about many homes in Europe. We know from our Healthy Homes Barometers, an annual research-based report designed to take stock of Europe’s buildings, that one out of six Europeans lives in unhealthy homes. For children in Europe, it’s worse, with one out of three being exposed to health risks in their homes. And the health risks are not just isolated to our homes. The same also goes for the environments inside buildings where we work and learn.

Furthermore, we know that people spend 90 percent of their time indoors, where the air can be up to five times more polluted than outside. The potential risks to people’s health and wider society are not insignificant, with poor indoor climates directly leading to conditions such as asthma or allergies, due to dampness and mould.

Ongoing dialogue and modified solutions

For years we have been using such well-documented research to engage in dialogues with legislators, housing professionals, building owners and industry representatives to push for steps to make buildings healthier. In recent years, we have also modified our solutions, which bring daylight and fresh air through roofs, to be more automated and also compatible with digital technologies and the internet of things, and thereby make creating healthy indoor climates hassle-free.

Using SDGs to push harder for healthier indoor climates

At VELUX Group, it is our strong belief that if indoor climates are not good for our health, then we’ll see problems for individuals and for society. Now, with the help of the United Nations Sustainable Development Goals, we have an extra toolbox to support our efforts to address this.

We believe that by embracing this common global language of SDGs, we can leverage our efforts to make buildings healthier.

More specifically, we use three SDG goals to help people see the world through a different lens and to reveal the possible negative effects on their health from the ‘hidden climate’ – the indoor climate. We do this by showing how good indoor climates and healthy buildings can safeguard good health and well-being (SDG 3) and also how this can contribute to more sustainable cities and communities (SDG 11), with the help of partnerships for the goals (SDG 17).

Revealing what’s right under our noses for a more sustainable future

With much of the current climate change and sustainability focus on natural renewable energy sources or companies’ steps to reduce their carbon footprints, the climates inside our homes and other buildings, and their potential negative effects on our health and well-being continue to be ignored. That’s why the VELUX Group will persist with research and activities to boost indoor climate awareness and continually improve our products, to address what’s right under our noses but often overlooked – the indoor or hidden climate. By improving indoor climates to help make buildings healthier, we are confident that we will contribute to a more sustainable future.

About the Author

Ingrid Reumert – VP, Global Stakeholder Communications & Sustainability at VELUX Group

Photo by Timothy Buck on Unsplash

Consumers fall for food products with nutrition claims – what about you?

By Meike Janssen

In a recent study, colleagues from the University of Kassel, Germany and me discovered that consumers fall for food products with nutrition claims on the package front.

Nutrition claims?

Nutrition claims are short claims highlighting a particular beneficial nutritional property, e.g. fat-free, high protein, or rich in vitamin C. In the study, we sent consumers shopping in a laboratory supermarket with real products on the shelf. The interesting fact: Consumers could choose between three orange juices with identical nutritional profiles; only that one orange juice carried the nutrition claim rich in vitamin C. And this was the orange juice most consumers bought, even though the other two orange juices contained the same amount of vitamin C (for details about the experiment, which claims were tested, and how the claims rotated across the brands, see the end of this post).

Interestingly, all types of consumers fell for the orange juice with the nutrition claim: consumers seeking for healthy products as well as consumers not caring about healthy products; consumers who knew a lot about nutrition as well as those who knew relatively little about nutrition.

Source: Johann Steinhauser; Meike Janssen; Ulrich Hamm (2019)

You might wonder: Is it allowed to prominently highlight, on the package front, an ingredient that is typically included in all products of a certain type? For vitamin C in 100% orange juice, the answer is yes.

The good and bad news

The good news is: EU law stipulates the conditions under which nutrition claims are allowed. So nutrition claims can generally be considered trustworthy. The bad news is: A nutrition claim does not mean the product is overall healthy. A nutrition claim only refers to a single ingredient.

>>**For instance, it is allowed to label candy containing high amounts of sugar as fat-free. If you ask me, that is a problematic issue.** <<

Are consumers stupid or irrational?

How come consumers can be ‘manipulated’ so easily, by simply highlighting one beneficial ingredient that is, in fact, in all 100% orange juices? Is it because consumers are stupid and know little about vitamin C in orange juice? No, that would not explain why even consumers with a high nutrition knowledge fell for the product with the nutrition claim. Then is it because consumers behave irrationally when they do grocery shopping? Again, the answer is no.

Consumers look for simple heuristics when choosing between similar food products. When grocery shopping, we are confronted with a lot of information. Since most of us do not want to spend hours in the supermarket comparing several products and reading all information on product packages, we use ‘cues’ that help us navigate through the information jungle.

Every consumer has his/her own cues that he/she uses, often subconsciously. These cues simplify our choice tasks and allow us to make quick decisions. And the important thing is: in the end, we are usually quite happy with our product choice. Most of us walk out of the supermarket and do not worry about whether we really made the best possible choice. So in that sense, relying on simple choice heuristics and using cues like ingredients, brand and price makes perfect sense for us, at least when we do grocery shopping. There is nothing irrational about it.

Take-home message: Better check nutritional information

Whether or not you want to use nutrition claims as one of ‘your cues’ when choosing food, remains your own decision. Just bear in mind the following: Only because one brand highlights that the product contains a beneficial ingredient, does not mean other similar products do not have the same benefits. And only because a product carries a nutrition claim, does not mean the product is healthy – it might contain high amounts of other unhealthy ingredients.

If you are really interested in buying a nutritious product, better check the nutritional information on the back of the package and compare several products. You might find a product with better nutritional properties without a nutrition claim on the front.

Details about the experiment

The study participants were recruited in the pedestrian area in the city of Kassel, Germany. The 156 participants went shopping in a laboratory supermarket. They could choose between three orange juices, each of which labelled with a claim:

taste claim ‘simply delicious’,
health claim ‘Vitamin C contributes to the normal function of the immune system’, or
nutrition claim ‘rich in vitamin C’.

To make the purchase simulation as realistic as possible, existing brands and products were offered on the shelf. We only added the claims. The products were from other German speaking countries (Austria and Switzerland) so that the participants were not familiar with them. We wanted to rule out strong brand effects. Across the sample, the three claims rotated among the three brands.

The study results are published in two journal articles:

About the Author

Meike Janssen is Associate Professor for Sustainable Consumption and Behavioural Studies, CBS Sustainability, Copenhagen Business School

Photo by Joshua Rawson-Harris on Unsplash

Further reading: Let Me Lend You a Hand: How Behavioural Economics Can Restore Trust in Science

Social Enterprises = Sharing Economy Organizations?

By Johanna Mair, Nikolas Rathert and Georg Reischauer.

Sharing Economy Organizations

Uber, Airbnb, and Lyft are frequently cited and popular examples of new organizational forms operating in the sharing economy, which is growing at a stunning pace. One way to make sense of the sharing economy is to conceive it as a web of markets in which individuals use diverse forms of compensation to transact the redistribution of and access to resources (Mair & Reischauer, 2017).

These transactions are mediated by a digital platform run by an organization that focuses on the governance of these transactions (Reischauer & Mair, 2018a, b). Besides the focus on platform-enabled business models, the sharing economy has also spurred discussions about the implications of the sharing economy for society. Many commentators have argued that the sharing economy can become key in making modern societies more environmentally sustainable (Frenken & Schor, 2017) and inclusive (Etter, Fieseler, & Whelan, forthcoming). This debate parallels the debates on another important organizational form, social enterprises (Mair & Rathert, 2019).

Social Enterprises

Social enterprises encompass a diverse set of legal and organizational forms that use market means to effect social change (Mair & Marti, 2006). They address a range of social problems on different scales, including local communities and countries, and target societal groups that usually remain outside the reach of both commercial markets and state-run welfare schemes (Mair, Wolf, & Seelos, 2016). Social enterprises use a variety of commercial activities, including the selling of products and services, and include beneficiaries in various stages of the value creation chain (Mair & Martí, 2006; Mair, Battilana, & Cardenas, 2012). As this discussion suggests, social enterprises might have much in common with sharing economy organizations.

Social Enterprises = Sharing Economy Organizations?

Social enterprises and sharing economy organizations are both alternative forms of organizing that have developed to overcome the deficiencies of contemporary capitalism (Mair & Rathert, 2019). But what are the similarities and differences of these forms, especially with respect to dimensions that have been identified as relevant for both forms, community (Fitzmaurice et al., forthcoming; Venkataraman, Vermeulen, Raaijmakers, & Mair, 2016) and growth (Mair & Reischauer, 2017; Seelos & Mair, 2017)?
We shed light on this question with a comparative analysis of a sample of German social enterprises and sharing economy organizations, which we surveyed in 2015/2016 (social enterprises) and 2018 (sharing economy organizations). This sample encompasses 108 social enterprises and 233 sharing economy organizations that can be meaningfully compared along several indicators, including age and profit orientation. These organizations span a variety of activity fields (e.g., health care and education in the case of social enterprises, or mobility and accommodation in the case of the sharing economy).

Social Enterprises ≠ Sharing Economy!

Our analysis provides first insights that social enterprises and sharing economy organizations are, in fact, quite different animals when it comes to community and growth.
Asking both about the role of community for improving existing products, the community seems more relevant for social enterprises (Figure 1). In fact, on a 7-point scale, social enterprises’ score is over 6 on average, compared to 3.9 for sharing economy organizations. This difference remains significant after controlling for age, profit orientation, and activity field.

Figure 1: Role of Community for Product Improvement

There are also differences when asking about the role of community for entering new markets. As shown in Figure 2, sharing economy organizations use the community for this purpose to a slightly greater extent (using a yes/no variable whether or not they use the community for this purpose, with the difference being statistically significant). At the same time, the salience of the community for this purpose appears as overall lower than for product improvement.

Figure 2: Role of Community for New Market Entry

There are notable differences when it comes to growth orientation. While 79% of the surveyed social enterprises have a strong growth orientation, this is only true for 36% of sharing economy organizations. When we regress growth orientation on profit orientation and fields of activity, we find that the lack of growth orientation appears to be driven by membership in the field of room sharing, while the fields of mobility, development and housing, and health appear to be associated with a greater growth orientation.

Besides, not all growth challenges are the same (figure 3). Our analysis suggests some that some growth challenges are specific to sharing economy organizations and social enterprises, respectively. Social enterprises are more worried about three aspects: preserving program quality, securing capital, and managing growth internally. Sharing economy organizations, in contrast, care more about fidelity to the mission and managing growth internally. When accounting for profit orientation, we find that those who are profit-oriented worry about securing capital, while those that are not worried about fidelity to the mission as they grow.

Our analysis further identifies the variation concerning geographical growth (Figure 4). Sharing economy organizations are not looking to change their geographical scope. At most, some are considering changing from a local orientation to a regional orientation. Social enterprises are more ambitious here, often looking to scale their model to a national scale or even beyond.

Figure 4: Aspirations for Geographical Growth

Embracing Alternative Organizational Forms

Our comparison of sharing economy organizations and social enterprises for the role of community and growth indicates that alternative forms of economic organizing differ in various ways. We take this as a positive sign that also reflects a societal ability to nurture and institutionalize alternative forms of organizing that can potentially overcome well-known deficiencies of capitalism. Future research will tell how these two forms will develop, create impact, and contribute to a more sustainable society.

Acknowledgements

This research was funded by the German Federal Ministry of Education and Research (Grant Number 01UT1408C) and the European Union Seventh Framework Programme (Grant Agreement 613500).

About the authors

Johanna Mair is Professor of Organization, Strategy and Leadership at the Hertie School of Governance, Germany. She is also the Co-director of the Global Innovation for Impact at the Stanford Center on Philanthropy and Civil Society and the Academic Editor of the Stanford Social Innovation Review.

Nikolas Rathert is Assistant Professor for Organization Studies at Tilburg University.

Georg Reischauer is a postdoctoral research associate at Vienna University of Economics and Business (WU) and at Johannes Kepler University Linz (JKU).

References

Etter, M., Fieseler, C., Whelan, G. forthcoming. Sharing Economy, Sharing Responsibility Corporate Social Responsibility in the Digital Age. Journal of Business Ethics, doi: 10.1007/s10551-019-04212-w.
Fitzmaurice, C. J., Ladegaard, I., Attwood-Charles, W., Cansoy, M., Carfagna, L. B., Schor, J. B., & Wengronowitz, R. forthcoming. Domesticating the market: moral exchange and the sharing economy. Socio-Economic Review, doi: 10.1093/ser/mwy003.
Frenken, K., & Schor, J. 2017. Putting the sharing economy into perspective. Environmental Innovation and Societal Transitions, 23: 3-10.
Mair, J., Battilana, J., & Cardenas, J. 2012. Organizing for Society: A Typology of Social Entrepreneuring Models. Journal of Business Ethics, 111(3): 353-373.
Mair, J., & Martí, I. 2006. Social entrepreneurship research: A source of explanation, prediction, and delight. Journal of World Business, 41(1): 36-44.
Mair, J., & Rathert, N. 2019. Alternative organizing with social purpose: Revisiting institutional analysis of market-based activity. Socio-Economic Review, doi: 10.1093/ser/mwz031.
Mair, J., & Reischauer, G. 2017. Capturing the dynamics of the sharing economy: Institutional research on the plural forms and practices of sharing economy organizations. Technological Forecasting and Social Change, 125: 11-20.
Mair, J., Wolf, M., & Seelos, C. 2016. Scaffolding: A process of transforming patterns of inequality in small-scale societies. Academy of Management Journal, 59(6): 2021-2044.
Reischauer, G., & Mair, J. 2018a. How organizations strategically govern online communities: Lessons from the sharing economy. Academy of Management Discoveries, 4(3): 220-247.
Reischauer, G., & Mair, J. 2018b. Platform organizing in the new digital economy: Revisiting online communities and strategic responses. Research in the Sociology of Organizations, 57: 113-135.
Seelos, C., & Mair, J. 2017. Innovation and scaling for impact: How effective social enterprises do it. Stanford, CA: Stanford University Press.
Venkataraman, H., Vermeulen, P., Raaijmakers, A., & Mair, J. 2016. Market meets community: Institutional logics as strategic resources for development work. Organization Studies, 37(5): 709-733.

Photo

Photo by Markus Winkler on Unsplash

Are we trying to solve climate change, or are we merely playing the “blame game” on social media with the future of the Earth at stake?

By Daniel Lundgaard.

The climate change debate is something that is on the minds of most people these days. The most recent elections in Denmark have been dubbed “climate-elections”, and we have recently seen massive demonstrations throughout the city of Copenhagen, and all around the world. These demonstrations take place both offline and on social media, where the #FridaysForFuture-movement recently has had a central role in inspiring engagement, especially among the younger generation.

The central role of social media as a platform cultivating a pursuit for social change is not something new. Recently #Metoo became a viral phenomenon with millions of people contributing worldwide, and a few years back we saw the rise of the Black Lives Matter-movement – as well as the Arab spring.

Civil society is associated with responsibilities for contributing to solving the problem rather than “playing the blame game”

However, while it is widely acknowledged that social media is used to discuss societal issues, there is so far little knowledge about how these discussions associate global issues such as climate change with the question of responsibility. Based on an analysis of around 3 million “climate change”-tweets – tweets mentioning either “climate change” in the text, use the #Climatechange-hashtag or share a link containing “climate change” in the headline, I dove in to the climate change debate on Twitter, and explored how the issue of responsibility was discussed. I was in particular curious about how the question of responsibility was framed, and how this question was associated with various actors. As I emerged from the data, three trends could be identified:

1. The issue of causing climate change is associated with the fossil fuel industry

Tweets referring to the issue of causing climate change are to a large extent explicitly referring to the fossil fuel industry, oil companies or similar, arguing that “the fossil fuel companies are responsible for causing climate change”. An argument emphasizing society’s responsibility also appeared, although not in the way that I would have assumed. The attempts to frame climate change as something caused by society was raised, but quickly dismissed, and instead used to emphasize the role of the fossil fuel industry, e.g. by linking to a report on how just 100 companies are responsible for 71% of global emissions, while stating “please keep this in mind if you feel personally responsible for climate change”.

2. Responsibilities for remedial activities is associated with society as a whole

Despite corporations being “blamed” for causing climate change, a lack of trust in these actors’ ability to change their ways was expressed in the tweets. Interestingly, one of the primary ways of framing the issue of solving the problem was that while corporations can be blamed for causing the problem, and we (civil society) should not feel personally responsible for what has happened until now, it was emphasized that we need to stop pointing the finger at corporations. We need to stop blaming the fossil industry for what has transpired, and instead re-think our way of living, and consider the daily choices we make e.g. “Swap your car or plane ride for a bus or train” or “stop eating meat”. Thus, civil society is associated with responsibilities for contributing to solving the problem rather than “playing the blame game”.

3. The debate is highly politicized

Finally, while corporations are blamed for causing the problem, and consumer behavior is emphasized in terms of solving the problem, the politicization of the debate permeates these trends. In relation to both trends, I found multiple references to political actors, emphasizing their contribution to the problem. This was often identified in tweets referred to the issue of climate denialism, but also in relation to how politicians haven’t sufficiently regulated the oil industry or that politicians in some cases even protect the fossil fuel industry – often related to discussions about money. Interestingly, while the politicization permeates the debate, the tweets discussing the role of political actors also emphasized the responsibility of civil society. An example of this is the argument that civil society have voted for these individuals, and that we need to consider our actions, and consider who we vote for in the future.

What can we learn?

Reviewing the way that climate change is discussed on social media, there is a general agreement that politicians and – in particular the fossil fuel industry – is to blame for what has happened. However, as the debate unfolds, there is a highly valuable argument in that playing the “blame-game” doesn’t solve any problems, and instead we, as a global society, need to think about our ways of living, and consider how we can be part of the solution.

About the author

Daniel Lundgaard is a PhD Fellow embedded in the Governing Responsible Business research environment and part of CBS Sustainability at Copenhagen Business School. His research is mainly focused on how communication on social media shapes the ways we think about organizational responsibilities, and how responsibilities become associated with emerging issues, as millions of citizens, politicians, NGOs and corporations engage in highly fluid debates.

By the same author:

Fake news and what it means for discussions about CSR-related issues

Is Social Media Redefining the Pursuit of Social Change?

Image

Photo by Con Karampelas on Unsplash

We Need To Pay More Attention To Business Associations

By José Carlos Marques.

Despite their key role in both national and international affairs, business associations remain strangely absent from academic discourse, teaching and research on corporate responsibility and sustainability. We clearly need to pay more attention to business associations.

The prominence of business associations

Business associations play an important role in promoting corporate responsibility and sustainability. One need to look no further than the events of recent weeks for evidence of their prominence and influence. At the UN summit in Katowice, Poland, national institutional investor associations – representing some of the planet’s largest asset managers, pension funds, and insurers – sent a clear message to the world’s governments: we need to end fossil fuel subsidies and introduce substantial carbon taxes if we want to avoid both environmental and financial calamity [i].

Recent headlines also point to how business associations may work to inhibit progress. Just before the UN summit began welcoming delegates, a number of fossil fuel trade associations, led by the American Fuel & Petrochemical Manufacturers, were busy lobbying the U.S. government. Their objective? Ensure that the U.S. Senate and Congress kill any hopes of reviving the federal tax credit for electric vehicles (EVs). That’s the same EV credit that helped Tesla grow its market share in the U.S. and is similar to programs that boosted EV usage in numerous other countries [ii]. While the credit program is a tiny fraction of what the fossil fuel industry receives in subsidies, it represents an obvious threat [iii].

Ensure that the U.S. Senate and Congress kill any hopes of reviving the federal tax credit for electric vehicles.

These are just some of the more visible examples of the considerable influence exercised by business associations. Countless other business associations lobby governments, develop self-regulatory programs and engage in a variety of activities that both advance and impede progress on a variety of key social and environmental issues including human rights, labor rights, climate change and inequality. Some have become highly prominent and visible in international circles – take the World Economic Forum (WEF) and the World Business Council on Sustainable Development (WBCSD).

What is a business association?

Business associations are membership organizations composed of, funded, and governed, by firms with shared interests. They represent and defend the interests of their organizational members to outside parties and frequently offer services to their membership base (Schmitter & Streeck, 1999; Lanzalaco, 2008; Barnett, 2013). Associative action is distinct from other forms of business collective action such as alliances, business groups, networks and multi-stakeholder initiatives. It is also one of the most common forms of inter-organizational business activity. There are thousands in the U.S. alone. Every industry and sub-industry has one or several associations and most companies are members of one or several associations – a trade or industry association, a chamber of commerce, an employers’ association, a sustainability coalition, a lobby group, an economic club, etc.

The peril and promise of business associations

As the examples in the introduction illustrate, collective action via business associations can serve multiple ends. In some cases, they operate as special interest groups and rent-seekers whose narrow, self-serving objectives benefit only the industries or coalitions they represent… or even a small subset of member firms within the association. As such, business associations may stall or undermine sustainability efforts and capture regulators and legislators. In these cases, they are detrimental to society and must be countered and contained by markets, governments and social movements (“peril”).

In other cases, their interests are aligned with broader social goals, and as such, they serve as powerful, well-resourced advocates for mobilization and pro-social change. Under certain conditions, business associations may also exert normative pressure upon its membership, mediate member interests, and operate as effective self-regulatory institutions, resulting in beneficial social outcomes (“promise”).

The need for more research

The idea that companies who compete in the economic sphere can also collaborate to address social and environmental concerns has taken hold in both academic and practitioner circles. However, scholarship from various disciplines suggests that achieving the institutional conditions conducive to beneficial social outcomes is difficult and that more research on business associations, and the broader topic of collaboration amongst competitors, is required. Depending on the theoretical grounding and audience, the phenomenon is being addressed under a variety of labels: trade associations, green clubs, meta-organizations, pre-collaborative collaboration, coopetition and self-regulation. Clearly, there is a strong need and there are growing opportunities to address the prominence, peril and promise of business associations.

[i] Carrington, D. (2018, Dec 10). Tackle climate or face financial crash, say world’s biggest investors: UN summit urged to end all coal burning and introduce substantial taxes on emissions. The Guardian. Retrieved from https://www.theguardian.com/environment/2018/dec/10/tackle-climate-or-face-financial-crash-say-worlds-biggest-investors?CMP=share_btn_tw

[ii] Lambert, F. (2018, Nov20). Oil companies officially ask Republicans to kill effort to extend electric vehicle tax credit. electrek. Retrieved from https://electrek.co/2018/11/20/oil-companies-republicans-kill-electric-vehicle-tax-credit/

[iii] Nuccitelli, D. (2018, Jul 30). America spends over $20bn per year on fossil fuel subsidies. Abolish them. The Guardian. Retrieved from https://www.theguardian.com/environment/climate-consensus-97-per-cent/2018/jul/30/america-spends-over-20bn-per-year-on-fossil-fuel-subsidies-abolish-them

The Author

José Carlos Marques is Assistant Professor, Strategy, Corporate Responsibility and Sustainability, at the Telfer School of Management, University of Ottawa, and Visiting Research Fellow (Governing Responsible Business) at the Copenhagen Business School. His research program, at the intersection of strategic management, sustainability and transnational governance, examines the drivers and organizational strategies of inter-organizational coalitions that address social and environmental challenges – these include business associations, multi-stakeholder initiatives and business-state interactions. His work has been published in MIT Sloan Management Review, Organization Studies, Journal of Business Ethics and Journal of World Business.
contact: jc.marques@telfer.uottawa.ca
twitter: @jcmarqz

Bibliography

Aldrich, H. E. (2017). Trade Associations Matter as Units of Selection, as Actors Within Comparative and Historical Institutional Frameworks, and as Potential Impediments to Societal Wide Collective Action. Journal of Management Inquiry, 27(1), pp.21-25.
Barnett, M. L. (2013). One Voice, But Whose Voice? Exploring What Drives Trade Association Activity. Business & Society, 52(2), 213-244.
Buchanan, S. and Marques, J.C. 2017. How Home Country Industry Associations Influence MNE International CSR Practices: Evidence from the Canadian Mining Industry. Journal of World Business, 53(1): 63-74.
DiVito, L., & Sharma, G. (2016). Collaborating with Competitors to Advance Sustainability: A Guide for Managers. Network for Business Sustainability (NBS). London, ON. Retrieved from https://nbs.net/p/guide-collaborating-with-competitors-to-advance-sustai-a95dc170-b857-49f4-82ba-42033c09b6cc
Grayson, D., & Nelson, J. (2013). Corporate responsibility coalitions: The past, present, and future of alliances for sustainable capitalism. Redwood City, CA: Stanford University Press.
Lanzalaco, L. (2008). Business Interest Associations. In G. G. Jones & J. Zeitlin (Eds.), Oxford Handbook of Business History (pp. 293-318). Oxford: Oxford University Press.
Marques, J. C. (2017). Industry Business Associations: Self-Interested or Socially Conscious? Journal of Business Ethics, 143(4), 733-751.
Nidumolu, R., Ellison, J., Whalen, J., & Billman, E. (2014, April). The Collaboration Imperative. Harvard Business Review. Retrieved from https://hbr.org/2014/04/the-collaboration-imperative-2
Potoski, M., & Prakash, A. (Eds.). (2009). Voluntary Programs: A Club Theory Perspective. Cambridge, MA: MIT Press.
Rajwani, T., Lawton, T., & Phillips, N. (2015). The “Voice of Industry”: Why Management Researchers Should Pay More Attention to Trade Associations. Strategic Organization, 13(3), pp.224-232.
Schmitter, P. C., & Streeck, W. (1999). The Organization of Business Interests: Studying the Associative Action of Business in Advanced Industrial Societies – MPIfG Discussion Paper 99/1. Cologne, Germany: Max-Planck-Institut.

Photo by Sebastian Bednarek on Unsplash.

The CBS Sustainability (re-) Launch

This is blog post one of two throwbacks providing key insights from the speakers.

By Oliver Laier.

On Monday, December 3rd, a new centre was officially launched at Copenhagen Business School’s Management, Society & Communications department (MSC), located in Dalgas Have.

A crowded lobby in Dalgas Have, when the participants got their name tags. With fruit and coffee, the guests had a chance to chat and mingle, before the event began.

CBS Sustainability

New? Not quite. From 2002-2018, there was cbsCSR, a centre for Corporate Social Responsibility; and for five years starting 2011, the Business in Society (BiS) Sustainability Platform. Insofar the launch was more the rebirth of the phoenix than something completely new. The “masses of success” from the two mentioned formats are now continued and expanded in a new suit that acknowledges the plethora of themes and issues under Sustainability, which have long gone beyond merely corporate aspects.

Research and teaching will of course remain the core features of the centre. But CBS Sustainability is also a platform. In this function, it is going to focus on outreach and inreach also, as Steen Vallentin (lecturer and director of the centre, see photo) explained in his opening talk to the event.

CBS Sustainabilitiy’s focus areas:

Corporate social responsibility
Government and governance of responsible business
Behavioural public policy
Sustainable consumption
Sustainable development
Social innovation/ entrepreneurship
Corporate communication
Business and human rights

The new centre is precisely about research beyond corporate social responsibility, and rather about working with a broader sustainability agenda. It is about defining both solutions and problems, and to find critical and constructive approaches. CBS Sustainability will be focal point for resources at CBS and outside, but at the same time platform for dialogue, connection and coordination in the diversified field which now ranges from governance across behavioural science to human rights.

Being sustainable, or becoming less unsustainable?

Henrik Schramm Rasmussen from Danish Industy (aka. Dansk Industri or simply: DI) joined as a speaker from the business world. Representing DI, he had an unmistakable notion of the sustainability theme and the global goals in particular: the UN SDGs as business driver. They bare the capacity to offer a growth strategy including market opportunities, drive innovation and are therefore linked to economic growth.

Henrik Schramm Rasmussen from Danish Industry (DI).

The global development goals are per definition common, since we share the planet; and although they are not exactly written in business lingo, they are clearly formulated, underpinned by specific targets and come with a network offering advice and inspiration.

Companies should engage for several reasons Henrik claims: firms can harvest new market opportunities, attract workforce, brand and license themselves to operate in sustainable business. Needless to say, this is no walk in the park, neither for small, nor for large or established companies. DI has therefore launched a page (in Danish), introducing the goals to firms and explaining how they can strengthen a company by providing guidance and exemplary cases. With member companies covering the most diverse fields, from architecture, over production, to consumer goods to event management (yes, I refer to Roskilde Festival!), there is already a rich collection of inspiring cases.

There is a shift going on among the businesses: from rather passive, preventive and risk reducing compliance, to active and courageous creation of business opportunities and development. The new way involves customers and partners, R&D, sales and communication, but of course also risk. However, ambitious goals can also foster innovation and competitive power – and this is what to aim for.

Henrik’s key take-aways:

SDGs are about innovation and new business models.
Sustainability must be owned by top leadership, not compliance managers!
It’s about innovation, sale and a rethinking of companies’ purpose.
Sustainability starts with a bold mission statement about the company’s contribution to a sustainable world.

Current issues in Business and Human Rights: report from the 2018 Annual Forum in Geneva

By Karin Buhmann.

‘Building on what works’ was the key topic for the annual Forum on Business and Human Rights that took place in Geneva on 26. to 28. November. With more than 2000 participants, the Forum has become the world’s largest gathering of practitioners, academics, civil society, governments and just about anyone else with an interest in the field of business and human rights. The sessions were streamed online, making the Forum accessible also for those not able to attend in person in Geneva.

Now in its seventh year, the Forum is organized by the United Nations (UN) as a multi-stakeholder event to take stock of and advance the implementation of the UN Guiding Principles on Business and Human Rights (UNGPs), and to discuss other issues related to this fast-evolving field. The UNGPs build on three ‘pillars’:

The state duty to protect human rights against infringements caused by companies;
the corporate responsibility to respect human rights; and
enhanced access to remedy for victims of business-related human rights infringements.

Each year’s Forum has a special topic, and the Forum is organized to seek to involve relevant stakeholders in bringing relevant issues, dilemmas, challenges and opportunities to the foreground. It is intended to help building knowledge of how companies, governments, civil society and others can help advance business respect for human rights.

Prior to the 2018 topic, for example, the 2017 Forum addressed the issue of ‘access to remedy’, and previous Forums have addressed, for example, leadership and leverage in regard to human rights in the global economy. Some topics are recurrent at the Forums, such as the role of institutional investors, and the implementation and effectiveness of human rights due diligence.

’What works’ and how human rights impact on the economies of companies

In line with the ‘What works’ topic, this year’s Forum featured a special ’snapshot’ track. Here, a large number of individual companies and managers took turns to share their experience on their work to advance the corporate respect for human rights in their own organisations, in their value chains, and with stakeholders. Other tracks featured, for example, the connection between climate change and business responsibilities for human rights; and debates on the human rights implications of the tech-industry, ICT and artificial intelligence. Reflecting other debates during the past year, human rights issues highlighted in the ICT and AI contexts included risks to privacy, the freedoms of communication and information, free and fair elections, and jobs. Increasing attention is also paid to human rights and sports, for example in regard to mega-sporting events and related construction projects, such as those for the 2022 FIFA football world cup in Qatar.

Not surprising, from an academic perspective one might sometimes wish for a broader discussion that could engage more with the strategies adopted and help challenge managers to further deepen their efforts to respect human rights. However, the ‘snapshot’ presentations along with the many other sessions jointly did confirm the extensive and important implications of human rights for many core business activities and areas: the Forum’s tracks and debates confirmed that human rights issues are increasingly significant in relation to business communication, due diligence and risk management, human resources and labour, supply chain management, finance, public procurement, non-financial reporting and beyond.

For example, the expansion on mandatory non-financial reporting in the EU and elsewhere that has taken place in recent years is strongly connected to and related to the development of the risk-based due diligence approach that is at the core of the UNGP. However, there is a persistent risk that regulators’ emphasis on formal disclosure after an activity takes place, results in too limited focus on preventing harm before or during an activity.

Academic networking

Aiming to benefit from the presence of a large number of individuals from regions around the world, several academic events take place at the Forum or, particularly, back-to-back with it. Advancing teaching and research on business and human rights was the topic of a half-day meeting at the University of Geneva, featuring a multi-disciplinary group of scholars and universities from many countries.

Organised by the CBS-hosted BHRights Intiative for Interdisciplinary Research and Teaching on Business and Human Rights (BHRights), a global research workshop gathered 25 scholars presenting their research on various topics of business and human rights. The presentations covered a range of very diverse topics, such as for example what national institutional factors condition business respect or dis-respect for human rights, corporate reporting on business and human rights in various countries, dilemmas around socially responsible green transitions, the rights of nomadic Sami reindeer herders, and the prospective international treaty on business and human rights.

UN Forum 2018 – Roundtable: Academic Networks in Conversation with Stakeholders (KB).

For the first time, the Forum organisers decided to include a specific session for various academic networks on business and human rights. Jointly organized by some of these networks, the session prioritized interaction with stakeholders from business, civil society and other organisations to stimulate mutual collaboration and understanding of the connections between theory and practice of business and human rights.

The 2019 Forum is currently scheduled to take place in late November 2019. Registration is expected to open in mid-2019.

The Author

Karin Buhmann is professor at Copenhagen Business School where she is charged with special responsibilities in business and human rights. Appointed by the Danish Minister of Commerce upon nomination by Danish Civil Society, she is also a member of the Danish National Contact Point to the OECD set up under the OECD Guidelines for Multinational Enterprises. Professor Buhmann was a member of the Danish delegation to the 2018 UN Forum.

Corporate contributions to United Nations’ Sustainable Development Goals

By Amanda Williams.

The days of corporate greening are over. Many companies kicked off their sustainability strategies decades ago by picking the low-hanging fruit. But there is nothing left within arm’s reach to pick. Now we expect companies big and small to demonstrate their contribution to broader societal and environmental sustainability challenges beyond firm boundaries.

The United Nation’s Sustainable Development Goals (SDGs) are arguably the most pertinent framework for corporations to demonstrate commitment to broader sustainability goals. The SDGs were adopted in September 2015 by 193 world leaders. They offer a comprehensive agenda of pressing economic, social and environmental issues. The goals are for everyone—governments, nonprofits, businesses, universities—everywhere—in all countries.

What are Companies Doing?

Encouragingly, the SDGs are showing up everywhere on corporate websites and reports. However, all this hype around the goals may not necessarily translate into more sustainability action. Many companies are taking advantage of the SDGs to repackage their existing sustainability initiatives. For example, let’s say a beverage company has a water stewardship program to increase access to clean water in the countries that they operate. It is easy for the beverage company to demonstrate a contribution to SDG 6, Clean Water and Sanitation. But this approach does not leverage the full potential the SDG framework nor business contribution to the goals.

“All this hype around the goals may not necessarily translate into more sustainability action.”

More ambitious companies are taking the SDGs as an opportunity to embed sustainability across the firm and improve their sustainability strategy. This goes beyond using the SDGs to highlight existing sustainability efforts. It requires an in-depth analysis of business operations against the goals to identify positive and negative impacts. Then it requires setting ambitious goals and developing a strategy to achieve those goals. It requires radical changes in the way the business operates. Companies that are taking the goals seriously have much to gain. Research by the Business Commission for Sustainable Development finds that there is over $12 trillion in market opportunities created if the goals are achieved by 2030.

Challenges of Implementing the Goals

Despite the potential benefits of engaging, implementing a corporate strategy that truly aligns with the goals is not easy. Many managers express that the SDGs are too complex. With over a 169 targets, it is no wonder that some sustainability managers might feel overwhelmed.

In addition to complexity, another challenge is language. The SDGs are a political framework and working with the framework requires some work to translate them into actionable business strategies and targets. It may be tempting to prioritize and identify a handful of SDGs that are most material for the company without going into much detail. But the goals were designed as a holistic agenda to capture connected economic, social and environmental issues. For the beverage company, that means they have to consider how their operations and supply chain positively and negatively impacts all the SDGs, not just singling out the positive contributions to SDG 6 through their water stewardship program.

Overcoming the Challenges

There are many success stories out there to show that making a meaningful contribution to and aligning corporate strategy with the SDGs is possible. Here are some tips for making it happen:

1. Partner

The goals are broad and complex. To help cut through some of the complexity, managers can collaborate with international organizations or universities. Many international organizations offer services related, helping companies understand the complexity of the SDGs. Collaborating with scientists can give you access to specialized and local knowledge about SDG issues and help set firm specific goals that are based on science.

2. Engage the entire company

The goals are not just for the sustainability department. They are for the entire company. Sustainability managers might take the lead on engaging with the SDGs but involving the entire company helps to create a culture of sustainability and embed sustainability across the firm. Safaricom, Kenya’s largest mobile phone operator, provides a best practice example. They embedded the SDGs into their purpose statement and each one of their business units made a specific commitment to the goals.

3. Use tools

Don’t start from scratch. Luckily, many tools are out there to help managers formulate a strategy to achieve the goals. The SDG Compass offers advice on how to deliver on the goals and is a large database of commonly used business indicators to measure and report on contribution to the goals. Also, the World Business Council for Sustainable Development runs the SDG Business Hub, a large inventory of all the resources related to business and the goals.

Author

Amanda Williams is a Senior Researcher at ETH Zurich in the Sustainability and Technology Group. She recently completed her PhD from Rotterdam School of Management, Erasmus University. Currently, she is a part of Copenhagen Business School’s Governing Responsible Business (GRB) World Class Research Environment Fellowship program.

Photo by Caitlyn Hastings on Unsplash.

Three Ways to Integrate Sustainability in Business Schools

By Jeremy Moon and Rieneke Slager.

Bring sustainability into the business school mainstream by aligning with schools’ existing practices: technical, political, and cultural.

Sustainable business has been taught and researched in business schools for decades. For nearly as long, proponents have warned about barriers to genuine integration of sustainability in business schools.

Sustainability Centres in Business Schools

In a recent article, we and our co-authors Sareh Pouryousefi and Ethan Schoolman looked at the role of sustainability centres in achieving this fit. Our analysis drew on a survey of directors of sustainability centres and interviews with ten of these centre directors. We found that leading sustainability centres seek to achieve three types of fit between their own practices and those of their business schools, in order to promote integration.

The types of fit are:

Technical. Centres achieve technical fit — i.e. alignment with existing organisational structures- by ensuring that sustainability topics are taught in a mix of core and elective programmes in different disciplines.
Political. Centres achieve strong political fit by aligning with the interests of school leaders in order to develop sustainability practices as a brand for the school.
Cultural. Centres achieve cultural fit — i.e. alignment with the cultural values of the wider organisation — somewhat counterintuitively. They do it by not defining terms such as ‘sustainability’ or setting fixed boundaries around their work; instead, they interpret research themes loosely to include colleagues with related research interests.

A centre may pursue one kind of fit, but because these types of fit are highly interrelated, actions in one area (technical, cultural, political) will affect the others.

On the one hand, they can positively reinforce each other towards better integration. The existence of cultural and technical fit will encourage collaboration. The presence of cultural and political fit will boost legitimacy. Political and technical fit will strengthen resources devoted to sustainability.

The challenge of fit

Centres that manage to achieve higher levels of fit across domains feel more secure about the long-term prospects of their centre. None of the centre representatives we spoke to felt that they had a complete alignment in all three areas of fit. But centres saw benefits when they had a good degree of fit in two or more areas, or were working towards fit in multiple areas. In these cases, directors felt that their centres’ purpose transcended the individuals associated with them, guarding them against future political headwinds, such as lack of interest from senior management.

Barriers to fit remain even at leading schools. This is because sustainability centres usually present some challenge to assumptions of others at business schools — often including Deans.
Our research shows that lack of fit in one domain may also impact the other domains. For example, a centre might have a high level of political fit through support from the Dean, but low cultural fit because it tightly defines sustainability in contrast with wider business school values. That centre may also struggle to achieve high levels of technical fit.

These elements are important even for sustainability centres that purposefully avoid integration with those wider business school practices which they deem wholly antithetical to sustainability. These centres can still attend to issues of political, technical and cultural fit as they choose strategies for carrying out their teaching, research, and engagement activities.

The Authors

Rieneke Slager is Assistant Professor at the University of Groningen.
Jeremy Moon is Velux Professor of Corporate Responsibility at Copenhagen Business School.

Full article

Slager, R., Pouryousefi, S., Moon, J., & Schoolman, E. 2018. Sustainability centres and fit: How centres work to integrate sustainability within business schools. Journal of Business Ethics. Retrieved from https://doi.org/10.1007/s10551-018-3965-4

Thanks

This article is a courtesy of the Network for Business Sustainability, ‘a network of over 6000 researchers and managers who are committed to advancing sustainable business’. Read more about who they are and what they do here.

Pic by discosour on flickr.

Sustainability’s Infrastructure

Ethnographies of the global value chain of certified tea (SUSTEIN)

By Hannah Elliott, Martin Skrydstrup and Matthew Archer.

Why SUSTEIN?

Currently, the world’s tea industry is on a race with time to source tea sustainably before 2020. But what is “sustainable tea” and how do we know if tea is sustainable or not? This project entitled SUSTEIN (SUStainable TEa INfrastructure) will focus on this question by way of looking at localized translations of transnational sustainability standards in Kenya, United Arab Emirates and corporate headquarters in Europe. We aim to advance our understanding of the global value chain of certified tea.

3 Research lines

The theoretical objective is to venture beyond the notion of global value chain by reinterpreting sustainable supply chain management through the concept of infrastructure, a notion anthropologists and other social scientists have deployed in recent years to emphasize the political and temporal aspects of networks such as transnational supply chains. We hope that this concept will allow us to better comprehend how sustainable certification schemes manifest in global value chains.
SUSTEIN consists of three sub projects, which each address a core question posed by the project:

How does certification shape agrarian production in the form of cultivation and factory processing, and vice versa? Who benefits from which sustainability standards? (Line A)
How does certification influence the valuation of tea, assessed in terms of taste, grade and price? How is the value of certification performed and capitalized? (Line B)
How do corporate professionals and independent auditors distinguish between “sustainable/unsustainable”? What lines of evidence are recognized? (Line C)

Each of these questions will be answered by the corresponding research line:

tea plantation — Tea plantage in Kericho; one of SUSTEIN’s field sites.

Research line A

explores agrarian questions, enquiring into the ways contemporary drives towards sustainability shape and are shaped by modes of tea production in Kenya. The research focuses on the institution of the tea plantation and its associated factories and outgrower farms, all key components of the infrastructure of sustainable tea. The tea plantation has been described as having a “dual character” (Besky 2008: 1); it has its roots in British colonialism while being contemporarily positioned in international markets for certified sustainable commodities. This research line enquires into what ‘sustainability’ comes to mean and materialise within this apparently contradictory setting. How do contemporary measures seeking to ensure sustainable tea production, such as certified standards, affect the way tea is produced in the context of the plantation? And to what extent do longer-standing modes of plantation production endure through the present, in turn shaping contemporary sustainability ideologies and practices? The research line addresses these questions through ethnographic inquiry. The researcher will spend time with the people working on tea plantations and in factories certified by different certification bodies and on the farms of outgrowers contracted to supply the companies owning plantations with supplementary sustainable tea. Through interviews and participant observation, the ethnographer will enquire into the social, political and ethical worlds surrounding sustainable tea production in contemporary Kenya.

Research line B

will follow through on the plantation and factory sites to the auction sites in Mombasa and Dubai. Ethnographic fieldwork will be conducted in the Jebel Ali Free Zone in Dubai with no tax regulations, no strict labor laws nor import/export duties, making it the perfect infrastructural hub to blend and pack tea according to corporate logic. Likely as an outcome of this, the Dubai Tea Trading Centre has since its establishment in 2005 risen to re-export 60% of the world’s tea production. These volumes are predominantly traded on virtual platforms.
In contrast, the Mombasa Tea Auction holds two weekly auctions under the auspices of the East African Tea Trade Association (EATTA), which conforms to national regulations (Tea Act of Kenya & Tea Board of Kenya). Recently, this auction site voted “against the mouse and for the hammer,” maintaining the tradition of the Dutch auction style vs. virtual trading. The ethnography for this research line will move between these two sites, following tea blenders who purchase in Mombasa vs. Dubai and investigating tea expertise and technologies as it pertains to the valuation of certified tea.

Research line C

builds on these ethnographies of production and exchange to try and understand the relationship between corporations and standards/certification regimes. There is a tension between these groups of actors whereby standards organizations such as the Rainforest Alliance and Fairtrade International need to appear independent in order for their certifications to remain credible while at the same time remaining sensitive to the financial obligations of for-profit corporations in order to promote “buy-in.”
This research line will draw on interviews with people working in these organizations and participant observation at sites where they interact, including industry conferences and trade fairs. These are the sites where sustainability is negotiated as both a concept and as a set of practices. With that in mind, interview questions will focus on, among other things, the extent to which specific agricultural and trading practices are integrated into broader definitions of sustainability and their manifestation in different certification regimes, the challenges of maintaining a critical distance between certifiers and corporations, and the way standards govern markets and, crucially, vice versa.

The grant

SUSTEIN is made possible by the Sapere Aude Starting Grant (meaning “dare to know”), awarded by the Danish Council for Independent Research (DFF). The Sapere Aude program “is aimed at younger, very talented researchers, who at the time of the application deadline and within the last eight years have obtained their PhD”. The Sapere Aude program targets “top researchers who intend to gather a group of researchers, in order to carry out a research project at a high, international level.”

Reference

Besky, S. (2008) ‘Can a plantation be fair? Paradoxes and possibilities in Fair Trade Darjeeling tea certification’. Anthropology of Work, XXIX: 1, pp. 1-9.

Hannah Elliott is a post-doc in the Department of Management, Society, and Communication at Copenhagen Business School, having recently finished her PhD at the University of Copenhagen. She is responsible for research line A.

Martin Skrydstrup is an associate professor in the Department of Management, Society, and Communication at Copenhagen Business School and is the principal investigator of SUSTEIN. He is also responsible for research line B.

Matthew Archer is an assistant professor in the Department of Management, Society, and Communication at Copenhagen Business School and is responsible for research line C. He recently completed his PhD in environmental studies at Yale University and is interested in corporate sustainability and sustainable finance.

Closing remarks

In a year we hope to update BOS readers about how far we are with answering our research questions. In the meantime, we invite you to swing by our offices at Dalgas Have for a cup of tea.
The SUSTEIN project runs from 1 July 2018 to 30 June 2020.
For further information about the project, please contact the principal investigator, Martin Skrydstrup, at msk.msc@cbs.dk.

“Publish or Perish”

by Luisa Murphy

In academia -especially for young researchers- there seems to be only one way to the top: publish frequently and in well-regarded journals. This pressure however may sometimes come at the expense of academic quality. As with other things, good research sometimes just needs time. Unfortunately, infrequent publishing might be followed by less recognition, and funding might be more difficult to obtain in the short-term. Eventually, one might lose the opportunity to move up the career ladder. In a nutshell: Publish or perish.

The pressure of frequent publishing

My experience is that the phrase seems to ignite a range of emotions from rage to acceptance among academics. This can be a conversation starter or something that inevitably comes up in conversation. The dilemma is also at the epicenter of different symposia, conferences and other scholarly debates. The woes of the publish or perish dilemma are manifold. To name a few, ‘salami slicing’ e.g. taking one idea or dataset and reusing it in various papers, disillusionment with the publishing process and lack of creativity. Yet, few researchers investigate the publish or perish dilemma and why it endures (de Rond & Miller, 2005). In essence, is it the publish or perish dilemma that is the problem, or are we?

Below, I briefly introduce the birth of ‘the publish or perish’ dilemma and then delineate a few points on what I call the short-term pleasure dilemma of the publish or perish dilemma. I conclude with a few questions to consider what a ‘publish or perish’ free world would look like. I suggest that paradoxically, we might enjoy the publish or perish dilemma because it provides short-term gratification in a long-term context. In this age of publish or perish, I should note that I am by no means a gratification theory scholar and raise these questions based on my own personal experiences in academia for further research purposes.

To publish or to perish

The idea behind the publish or perish dilemma is often traced back to two studies by the Carnegie and Ford Foundations in the mid-1950’s which looked at the state of business education in the US. The findings of the studies deplored the lack of intellectual relevance and dynamism, analytical prowess and lack of high quality journals in organization sciences (de Rond & Miller, 2005, citing Gordon & Howell, 1959, pp. 355, 379). As a result, research which had been on the backburner compared to teaching endeavors became the hallmark, or at least of equal significance, to teaching in academic organizations (ibid). The idea also traveled to Europe with similar studies conducted in the UK and France in the 1960s and 70s and has since spread like wildfire globally. In essence, with the prevailing publish or perish idea, there has been a focus on publishing in top-tiered peer reviewed journals, citation impact factors and tenure rewarded as a result of publications. This has led to the criticism that scientific quality e.g. innovation and intellectual inquiry has come at the expense of publishing expeditiously to move up the career ladder. One example of these costs is the phenomena of “rogue publishers” or journals which offer to publish (often younger scholars) at a fee thereby abusing the peer-review system.

Short-term gratification?

Taking this into consideration, I suggest some areas that require further research (to do at another time due to the publish or perish dilemmaJ) which suggest that the publish or perish system endures because it provides short-term gratification in a long-term academic game.

Publishing frequently

While it has been argued that publishing frequently comes at the expense of originality and innovation, academics also cite deadlines such as paper calls and conferences and the review process itself as means to work through ideas and enable them to come to fruition. This suggests that there may be some short-term gratification that results from publishing often as opposed to waiting years for a high-quality idea to emerge and be published. On the contrary, if the idea might not amount to something publishable, the review process may be a way to root it out. Clearly, the inverse is also true e.g. that great ideas and theories are obviously not developed in a day but short-term gratification might be attained from delivering frequent outputs.

Publishing in top-tiered peer reviewed journals

Publishing in top-tier peer-reviewed journals has been a source of great contention as many argue that the process forces publications into certain conversations and might prize certain discourses, that the metrics which rank journals are problematic and that the peer-review process itself is rife with transparency, bias and time allocation issues. Yet, publishing in top-tiered journals also provides scholars with a sense of pride, inclusion into an academic conversation and sense of accomplishment. Again, there seems to be a sense of short-term gratification related to publishing in top-tiered peer reviewed journals: scholars develop a certain prestige, are able to network and communicate with others in the community and use a yardstick to measure their progress. Given that senior scholars do not need to prove themselves to the same extent that junior scholars do, it can be argued that gratification might be more of a short-term benefit.

Moving up the career ladder

Publishing frequently and in top-tiered peer reviewed journals is the ticket to advancing in academia. But once you move to the top, there is likely less gratification received from publishing in top-tiered journals and publishing frequently. Therefore, it is likely more gratifying in the short-term to publish frequently and in top-tiered journals because they can lead to career advancement.

The short-term publish or perish pleasure dilemma or an alternative?

Taking these factors into consideration, the question remains as to whether this short-term gratification is at the expense of the long-term. This raises the question as to what the alternative would look like. Presumably, it would involve publishing less frequently, in journals of the author’s choice and using other metrics for evaluation. What do you think? Is this what the new generation of academics should strive for or should we continue to play the game and enjoy the short-term gratification / pleasure dilemma like eating a Snickers bar?

Reference

De Rond, M., & Miller, A. (2005). Publish or Perish: Bane or Boon of Academic Life? Journal of Management Inquiry, 14(4), 321-329.

Luisa Murphy is a PhD Fellow at Copenhagen Business School and supported by the VELUX Endowed Chair in Corporate Sustainability. Her research examines governance for anti-corruption. She brings a human rights and business background from the University of Oxford and legal experience from the Antitrust Division of the United States Department of Justice.

Photo by Simson Petrol on Unsplash.

A framework for assessing the potential of behaviour change for global decarbonisation

By Kristian Steensen Nielsen

Addressing climate change requires an urgent implementation of far-reaching solutions. Policy-makers and natural scientists have mainly offered supply-side solutions to solving the climate problem, such as widespread adoption of new or innovative technologies. While of critical importance, strictly prioritising supply-side solutions is unlikely to deliver the necessary greenhouse gas (GHG) emissions reductions within the desired time frame. An often-overlooked demand-side solution is behaviour change, which can offer both immediate and long-term reductions in GHG emissions.

There is an urgent need for rapid decarbonisation to reduce the magnitude of climate change. The Paris Agreement reflected this urgency in its formulation of ambitious goals to keep the global temperature increase below 2°C and preferably 1.5°C. Since the Paris Agreement, researchers—often affiliated with the Intergovernmental Panel on Climate Change (IPCC)—have with accelerated frequency been building scenarios for potential pathways to reach the temperature goals.[1] These far-reaching—and arguably radical—pathways involve urgent transitions to renewable energy sources and the majority assumes the use of carbon dioxide removal (CDR) technologies, such as afforestation or bio energy with carbon capture and storage (BECCS). Neither of the pathway scenarios take behavioral changes into account despite the fact that studies have shown its potential to reduce GHG emissions. For example, Thomas Dietz and colleagues (2009) found that a national implementation of behavioural changes in the United States could reduce U.S. households’ direct emissions by 20% within 10 years (representing 123 million tons of CO₂). Although not sufficient single-handedly, behaviour change can help speed up the decarbonisation of societies.

Three dimensions of behaviour change

To identify the potential of behavioural changes to reduce GHG emissions, it is critical to consider three dimensions[2]:

the technical potential (TP) of a behaviour, or the emissions reduction achieved if an individual or a target population collectively adopted the behaviour;
behavioural plasticity (BP), or the proportion of the technical potential achievable through the most effective behavioural interventions; and
feasibility of initiatives (IF) to induce change, which refers to the likelihood that the most effective interventions are achievable within a target population.

Focusing exclusively on either of the three dimensions will result in skewed analyses from which only imperfect interventions can be developed. For example, substituting a GHG-intensive behaviour with a less GHG-intensive alternative (e.g., flying to Bermuda on vacation versus vacationing in one’s own country) will promise a high TP but the extent to which people are willing to make such a behavioural substitution may be less promising (BP) and so might the feasibility of achieving the behavioural change across a large population (IF). Conversely, a behaviour could be easy to change (e.g., getting people to shut off lights in unoccupied rooms) and feasibly be implemented in a large population, yet hold a very low TP and therefore even in the aggregate fail to reduce emissions by much.

Identifying the most promising target behaviours

The task of researchers (across disciplines) in collaboration with policy-makers and companies is to identify the behaviours with the highest potential to reduce GHG emissions while considering all three dimensions in cohesion. Making such calculations is no easy task—as the dimensions may vary substantially between and within countries—but neither is adopting innovative technologies at a massive scale. However, focusing on both supply- and demand-side solutions will heighten the likelihood of achieving the Paris goals.

[1] Rogelj et al., 2018.

[2] Dietz et al., 2009; Vandenbergh & Gilligan, 2017.

References

Dietz, T., Gardner, G. T., Gilligan, J., Stern, P. C., & Vandenbergh, M. P. (2009). Household actions can provide a behavioral wedge to rapidly reduce US carbon emissions. Proceedings of the National Academy of Sciences, 106(44), 18452-18456.

Rogelj, J., Popp, A., Calvin, K. V., Luderer, G., Emmerling, J., Gernaat, D., … & Krey, V. (2018). Scenarios towards limiting global mean temperature increase below 1.5° C. Nature Climate Change, 8(4), 325.

Vandenbergh, M. P., & Gilligan, J. M. (2017). Beyond Politics. Cambridge University Press.

Kristian Steensen Nielsen is a PhD Fellow in environmental behaviour change at Copenhagen Business School. His research interests are self-control, behaviour change, and environmentally significant behaviour.

Pic by Duncan Harris, Flickr.

CSR: When High Aspirations Go Low – and How to Avoid it

By Peter Winkler & Michael Etter.

Managers’ public claims to improve CSR can have self-persuasive effects on corporations and their members. However, sometimes such “aspirational talk” can have the opposite effect. We explain why this may happen and how to avoid it.

“Green washing” or “smoke and mirrors” are labels that are often attached to the promises of managers who publicly claim to improve CSR. CBS researchers have challenged this sceptical view and argue that “aspirational talk” by managers, by raising public expectations and scrutiny, can make corporations and their members live up to these aspirations.

Sometimes, however, we argue that even the best-intended aspirations can have opposite, even detrimental effects. In the following we provide some reflections on the conditions, under which high CSR aspirations may “go low” and we suggest some ideas how to prevent such outcome.

From persuasive to provisional aspirations
Aspirations are helpful to direct and motivate employees. However, the last thing managers need on a mission towards substantial corporate responsibilisation are “blind believers”. Employees, who simply rely on a visionary manager and do not voice, where current business conduct impedes aspired CSR, will contribute little to change. Hence, we propose that managers should avoid getting too persuasive and creating “corporate cultism” around aspired CSR. Rather, managers should signal that visions are provisional and that employees, who critique contradictions between vision and reality, are the true driver of change.

From insistent to revisable aspirations
We suggest that managers should not stick too closely to their initial CSR aspirations. As innovation research tells us, insistence on initial ideas is never a good advisor to affect change. In contrary, managerial insistence on initial CSR aspirations may prevent that different ideas about future CSR by employees develop. Hence, managerial willingness to revise their aspirations in accordance to what employees consider responsible practice is crucial. After all, it is the employees who enact CSR in their daily work.

From broad to locally grounded aspirations
Aspirations, by nature, have a bias when it comes to envisioned scope and gravity. Dreams are larger than life. On a managerial mission towards better CSR, hence, the goal cannot, and maybe should not be to live up to managerial ideas. Rather, we suggest that corporate responsibilisation is about local grounding and depth of CSR in situated understandings and practices. In other words, CSR is less a question of reaching an aspired scope, but about winning depth and grounding in corporate practices.

Our ideas should by no means discourage managers to think big and speak out about CSR. However, we suggest that voicing CSR aspirations is only the first step. In a second step, managers might need to modify or sacrifice these aspirations for locally committed CSR practices.

Peter Winkler is a FH professor at the FHWien der WKW – University of Applied Sciences in Management and Communication, Vienna, and guest professor in organizational communication at the University of Salzburg, Austria. He is interested in sociological approaches to organizational and management communication research. In 2015/16, he was a research fellow at the Governing Responsible Business Research Environment at CBS.

Michael Etter, Ph.D., is a Marie Curie Research Fellow at Cass Business School, City University of London. He is interested in CSR, new ICTs, and social approval of firms. He tweets about media, technology, and business & society issues @MichaelEtter_.

Pic by Nick Fewings, Unsplash.

Banking on the Future – Driving Responsibility and Sustainability in the Financial Sector

By Lavinia Iosif-Lazar.

While the world seems to have moved on from the last financial crisis, one can only wonder if banks and financial institutions have learnt something from it that could steer them away from repeating the experience. From the educational side, we also have to consider whether business schools are able to instill in their graduates the values and norms to navigate financial institutions into clearer waters.

100 Years CBS – Time to Rethink Finance
During a CBS conference in the late months of 2017, academics and practitioners within the finance and banking industries alike had come together to think and “rethink the financial sector”. The purpose of the event was to bring to light the issues and opportunities of responsibility and sustainability within the financial sector, and create an agenda for future research and teaching in business schools, like CBS.

Over the course of the event, the ambition was to develop a dialogue with stakeholders from the banking and finance industry and to challenge the current attitude towards banking and its future with “responsibility” being the word of the day. The hope was that this dialogue would ignite new ideas and develop an agenda for future research and teaching in business schools towards 2117.

During the three tracks focusing on society, business models and the individual, with responsible banking being the overarching theme, participants heard speakers address issues spanning from the role Fintech and disruptive technologies like blockchain and cryptocurrencies play in industry innovation to different religious perspectives on banking and finance.

To Rethink Finance, we need to Rethink Education
When it comes to financial education, the focus was set on bringing it in sync with the new developments and real life challenges, while at the same time stressing the need for a business model based on valuation and normative principles. In crisis situations, the clear-cut modelling learnt in school no longer represents the norm. Education plays a major role in securing that the new generations of graduates have the capabilities needed to identify and understand people and their needs, rethink and modernize local banking and be attuned to the technological developments that can pave the way to a more responsible banking sector – centered on people instead of money.

Lavinia is project coordinator at CBS PRME. You can visit the PRME Office at Dalgas Have 15, Room 2C.007 & follow CBS PRME on Twitter, Instagram and Facebook.

Pic by Markus Leo (Unsplash), edited by BOS.

Can Your Green Building Rub Off On You?

By Lara Anne Hale.

How can the standardization of green default rules influences those living in or working with buildings?
Both the green and performance gap can be bridge through choice architecture within building infrastructure, thus facilitating sustainable consumption.
Counter to prior literature on default rules, my research finds that one key aspect of how design affects people is through awareness.

Approximate reading time: 2-3 minutes.

The Green Gap and the Performance Gap
There has been a wealth of research into sustainable consumption suggesting that individuals may value protecting the environment, but then not make green purchases, known as the “green gap” (Barbarossa & Pastore, 2015; Johnstone & Tan, 2015; Gleim & Lawson, 2014). At the same time there is a discrepancy between the way green buildings are built to energetically perform and how they perform in reality, known as the “performance gap”. Theorists, practitioners, and policy makers alike have sought to tackle the green gap with choice architecture, designing the way choices are framed to increase the likelihood of some choices over others (including choosing green products over standard ones) (Thaler & Sustein, 2008). And in recent years, there has been a demonstrated shrinking of the performance gap when learning from buildings as they are used, and then using these learnings to improve building performance predictions (Menezes et al., 2012). But what if these two strategies came together?

Closing the Gaps: Design for Awareness
As outlined in my recently published article “At Home with Sustainability: From Green Default Rules to Sustainable Consumption” (Hale, 2018), choice architecture within building infrastructure can be the starting point to sustainable consumption; and buildings designed this way can work towards reducing both the green and performance gaps. The article examines the building demonstration projects using the Active House standard and how the standardization of green default rules – choice architecture that sets the default choice for settings, such as temperature, lighting, water pressure, etc. (Sunstein & Reisch, 2013) – influences those living in or working with the buildings. Counter to prior literature on default rules, the research finds that one key aspect of how the design affects people is through awareness. By experiencing the Active House buildings and then later experiencing a contrast in a different built environment, they gained an appreciation for the conveniently designed way with which the buildings helped them to live better and consume fewer resources.

From green defaults to sustainable consumption through standards (Hale 2018)

A “Learning by Living” Approach to Sustainable Consumption
These positive effects work both ways. On the one hand, the very real impact of living in a sustainable home can generate an interest in seeking a green lifestyle in broader ways. For example, while living in one of the demonstration homes named Maison Air et Lumière, the Pastour family’s youngest child did not experience asthma attacks and was even able to stop taking his medication. However, upon moving back to a standard house, his attacks resumed. This poignant change in their child’s health drove the Pastour family to testify for the significance of sustainable living (Pastour, 2013). On the other hand, the standard makers learn from the experiences of those living in the demonstration buildings and can adapt and improve upon the building projections so that there is a better match between expectations and reality, and so that the buildings are better designed with people at the center.

Maison Air et Lumière. Pic by Adam Mørk for VELUX.

Altogether there are promising avenues for combining choice architecture and sustainable building design that make more healthy, comfortable indoor spaces for people, while basically offering a “learning by doing”…or “learning by living” approach to sustainable consumption.

Lara Anne Hale is an industrial postdoc fellow with VELUX and Copenhagen Business School’s Governing Responsible Business World Class Research Environment. The 3-year project is part of Realdania’s Smart Buildings & Cities cluster within BLOXHUB’s Science Forum. It builds upon her PhD work on experimental standards for sustainable building to look at the business model innovation process in organizations’ adaptation to the smart building business. Follow her on Twitter.

Pic by Kate Ausburn (Unsplash), edited by BOS.

CBS Hosts 6th Biennial International Symposium on Cross-Sector Social Interactions in June 2018

How can business, government, and civil society interact to better address societal challenges such as climate change, immigration, social exclusion, and poverty?

The 6th biennial International Symposium on Cross-Sector Social Interactions (CSSI 2018), hosted by Copenhagen Business School (CBS) on June 10-12 2018, will bring together researchers and practitioners to understand and address this question. The event is a meeting point for the fast-growing research community on cross-sector interaction and collaboration.

Under the theme of “Collaborative Societal Governance: Orchestrating Cross-Sector Social Partnerships for Social Welfare”, academics and practitioners will present and discuss new and innovative ideas for organizing and managing cross-sector collaboration. How can current and future approaches, systems and tools foster cross-sector collaboration and create societal impacts?

The event will include keynote speeches, panel debates and workshops related to cross-sector collaboration and partnerships. Topics to be addressed include, but are not limited to the following:

Cross sector collaboration and the Sustainable Development Goals (SDGs)
Communicating collaboration and partnerships
The role of partnership brokering
Financing cross-sector collaboration and partnerships
Formal and informal governance of cross-sector collaboration
Tracking the impacts of cross-sector collaboration
Cross-sector collaboration for the circular economy
The changing role of the state in the partnership society

Call for Extended Abstracts and Full Papers
The organisers of CSSI 2018 Symposium invite scholars and practitioners to submit papers linked to the overall theme ”Collaborative Societal Governance”. The aim of the Call is to open up collaborative societal governance as a new multi-disciplinary area of research by inviting contributions on the nexus of public administration, social policy, management and sociology. See the full Call text here.

CSSI 2018 Special Issues
Papers presented at CSSI 2018 can be submitted to either a symposium issue of Nonprofit and Voluntary Sector Quarterly (NVSQ) on “Collaborative Societal Governance” or to a special issue of Business and Society entitled “Collaborative Cross-Sector Business Models for Sustainability”. More information about special issues and other publications will be uploaded on the CSSI 2018 website.

Doctoral Consortium
The CSSI 2018 event will begin with a Doctoral Consortium, where PhD students will present and discuss their research with senior researchers from the CSSI community. Participants will also get new insights on theories, methodologies and tools for research on CSSI-related topics. The Doctoral Consortium will be held Sunday, June 10, 2018. You can read more about the Doctoral Consortium on the CSSI 2018 on the CSSI 2018 website or click here.

For more information visit the CSSI 2018 website.

Copenhagen Business School Centre for Corporate Social Responsibility (cbsCSR) is responsible for the organization of CSSI 2018. Questions and comments regarding the conference should be sent to: CSSI2018.info@cbs.dk. The CSSI 2018 event is organized with support from The Danish Chamber of Commerce, the GRB Research Environment and The Carlsberg Foundation.

Entrepreneurship: The Solution to Africa’s Youth Unemployment Crisis?

By Thilde Langevang and Katherine V. Gough.

Small-scale entrepreneurial activities currently provide livelihoods to a large proportion of the youth population in sub-Saharan Africa
In spite of a promising rise of entrepreneurship, we should be careful not to celebrate youth entrepreneurship uncritically

Approximate reading time: 3-4 minutes.

Africa is teeming with business activity managed by young people. In cities and towns, young traders are touting their goods in traffic jams, trying to sell everything from phone credits and toilet paper to drinking water and Christmas decorations. Alongside streets and pathways, young people sell a variety of items and foodstuffs from table tops or shacks. In neighbourhoods, women operate hairdressing salons and dressmaking shops often from their homes, whilst young men carve wood and fix electrical equipment. In the busy market places, young women and men trade a variety of goods including locally grown fruits and vegetables, imported new and second-hand clothes, shoes, mobile phones, and housewares. Some young people offer inventive services as and when the need arises; young men fill in potholes on the roads, hoping that passing vehicles will acknowledge their work with a token payment, while others rent out gumboots to pedestrians who seek to pass flooded streets. Others again act as ‘traffic police’ when narrow roads become jammed with cars, motorbikes and minivans.

Everyday Forms of Entrepreneurship
Such entrepreneurial practices might seem mundane, trivial, or insignificant when compared to instances of high-growth and high-tech entrepreneurship in the global North. And some might even dispute whether these types of income-generating activities should at all be labelled entrepreneurship. Yet such “everyday forms of entrepreneurship” (Welter, 2017) are significant since they currently provide livelihoods to a large proportion of the youth population in sub-Saharan Africa.

In the book ‘Young Entrepreneurs in Sub-Saharan Africa’ (Gough and Langevang 2016), we examine the rates, characteristics and experiences of young entrepreneurs in Ghana, Uganda and Zambia. Drawing on surveys conducted by the Global Entrepreneurship Monitor, we show how African youth are the most entrepreneurial in the world with around 40% of young people in Ghana, Uganda and Zambia being involved in “early state entrepreneurial activity” (which includes young people aged 18-35 setting up a business or running a business less than three and a half years old). These levels are equal to or higher than the adult population in their respective countries, and much higher than their youth counterparts in other regions of the world where average rates range from just 9% in Europe to 18% in Latin America.

Youth Entrepreneurship in Africa – Promises and Limitations
At first sight these high rates of youth entrepreneurship might look encouraging for African governments and international development organisations, which are increasingly promoting youth entrepreneurship as a solution to the mounting youth unemployment crisis. Whilst Ghana, Uganda and Zambia, together with a number of other African countries, have experienced high and sustained economic growth rates during the last two to three decades, the growth has not generated adequate, decent jobs. In a situation of very limited wage employment, and a rapidly growing youth population, young Africans are increasingly encouraged to change their mind-set from being ‘job seekers’ to becoming ‘job creators’ and are hard pressed into using their entrepreneurial ingenuity to start their own businesses as a means of creating livelihoods for themselves.

When looking closer at the statistics and listening to the experiences of young people, however, the picture is mixed. While entrepreneurship rates are high and the attitudes to business start-up very positive, a common characteristic of African young entrepreneurs is that their businesses stay at the micro-level and are concentrated in the informal economy, hence lie outside the protection and regulation of the state. Their businesses are concentrated in a limited number of vocations, with the majority engaged in trading or providing similar services. Competition is, therefore, cutthroat and earnings minimal. Noticeably, the majority of young entrepreneurs have no or only a small number of employees, which means they contribute little to job creation apart from self-employment, have low expectations for growth, and their businesses close down at a high rate.

Consequently, we should be careful not to celebrate youth entrepreneurship uncritically. It is important to acknowledge that not all young people have the skills or resources required to pursue viable entrepreneurial ventures. Indeed, most young people in Africa currently appear to be poorly equipped to become successful entrepreneurs in the sense of establishing durable businesses and growing them. There is also the risk that an excessive focus on entrepreneurship becomes a way to blame young people themselves for their misfortunes and provides an excuse for states not to deliver welfare services and ensure decent jobs (Jeffrey and Dyson, 2013).

No Silver Bullet for Tackling Youth Unemployment in Africa
So far the strong policy discourse on entrepreneurship in Africa has not been backed by adequate support measures. While the book reveals that the three African countries have all witnessed a similar mushrooming of entrepreneurship promotion schemes initiated by governments, NGOs and international development organizations, the general picture emerging is that youth entrepreneurship promotion is characterized by many uncoordinated schemes, which tend to have limited uptake and scope. Moreover, there tends to be a quite narrow focus on promoting business start-ups through providing finance. While more holistic approaches to entrepreneurship promotion are clearly needed it is equally vital that entrepreneurship is not singled out as the only solution to the youth unemployment crisis but rather is seen as just one element of broader labour market policies, which cannot themselves be separated from wider policies aimed at stimulating job-generating, inclusive, and sustainable economic growth and development.

Thilde Langevang is Associate Professor of Entrepreneurship and Development Studies at Copenhagen Business School.

Katherine V. Gough is Professor of Human Geography at Loughborough University.

Pic by Thilde Langevang, edited by BOS.

Need an SDG Solution? Hack it.

By Lara Anne Hale.

November 16 – 18, 2017 marked the beginning of a student-driven innovation era at Copenhagen Business School. The Student Innovation House – in collaboration with Oikos and PRME – hosted their first major event, the Sustainable Campus Hackathon 2017.

A Hackathon for more campus sustainability
Having received an impressive 120 applications to participate in the event, 66 students from universities across Denmark were invited to join an intensive 2.5-day spree of hacking sustainability ideas in four UN Sustainable Development Goal areas: Green Infrastructure, Healthy and Sustainable Food, Diversity and Inclusion, and Human Well Being and Mental Health. The goal? To come up with an idea that is feasible, implementable, scalable, and imparting a big impact; and the winning proposal will be further developed and implemented on the CBS campus next year.

Not all SDGs are created equally…
Perhaps not surprisingly, one of the first challenges was that not all SDGs are created equally, at least not in terms of student interest. Fully half of the students formed groups competing in the Healthy and Sustainable Food area, leaving Human Well Being and Green Infrastructure perfectly fitted with teams, but Diversity and Inclusion completely empty. I can’t help but wonder what this says about what is being integrated into students’ curriculum, especially in regards to sustainable development. Many students, during our “speed dating” for forming teams, remarked to me that they had recently had some courses relating to food systems and circular economy, and that this inspired them to innovate in this arena. Are we not giving gender equality the sustainability context – or even the examples of success and impact – that attract students to think critically and generate solutions for the future? Perhaps this in part is a reflection of Denmark’s rapid slide down the rankings.

Hacking the SDGs – with dedication, creativity & open minds
But by and by, teams drew from a hat, and we were sorted out. The next 36 hours involved input from experts, brainstorming, drafting, brainstorming again, and ultimately “hacking” the SDGs. My group’s subject area was Human Well Being and Mental Health, and my teammates hailed from Danish Technical University and Roskilde University. Their approach to the task was impressive: on the one hand they were hard-working and dedicated; and on the other hand they were playful with ideas and throwing around true creativity. It didn’t seem to bother them that the winning proposal would not directly, or at least immediately affect their universities. Rather, they were there to work on inspiration, on their own knowledge, and on collaboration. Beyond opening minds within teams, individuals across teams chatted over breaks, and mentors circled around, getting to know the breadth of people and ideas represented.

A playful approach to raise awareness around gender (in)equality
The hackathon was set up so that teams first presented for four minutes in a “heat”, and then were judged if they would be one of four teams proceeding to the finals. Notably, one of my favourite presentations was within the Diversity and Inclusion category. The team proposed circulating a quiz concerning “How much will you earn after your degree?” Respondents would enter their degree programs, age, experience, and so forth, and then be presented with their expected monthly wages. But then a pop-up would ask the user’s gender. If the response was male, the quiz would say “Sorry! We were mistaken. You will actually earn more than those who are not male!” and if the response was female, “Sorry! You will actually earn less than that, and less than your male counterparts.” This quiz idea is indeed a clever way to promote critical awareness, and hopefully more discussions concerning gender equality on campus (especially at CBS, where more than 80% of full professors are male).

And the winner is… Everyone!
Ultimately, the winners of the hackathon were Team Supo, who propose a student card-linked electronic point system for registering and incentivising sustainability actions, such as choosing to cycle to campus. Team Supo will be sent on a trip to New York, where they will expand upon their idea to the head office of PRME. Indeed I look forward to the implementation of their idea, but truth be told, the brilliance of a hackathon is the way it cracks open so many ideas, and brings together so many people. Supo will not be the only reason I’ll be back at Student Innovation House, as there are many more hacks – formal or informal – yet to come.

Lara Anne Hale is a former PhD student at Copenhagen Business School’s Governing Responsible Business World Class Research Environment. Her PhD focused on Experimental Standards in Sustainable Building as part of the EU Innovation for Sustainability project with VELUX. Follow her on Twitter.

Pic by Aafke Diepeveen, edited by BOS.

’Make Feminism Radical Again’

By Jeremy Moon.

Approximate reading time: 3-4 minutes.

’Make Feminism Radical Again’ – An unlikely fashion choice in some quarters but, yes, a fellow passenger at Copenhagen airport was donning a T-shirt bearing just this slogan.

The wearing of political slogans always sets off questions in my mind, as I try to imagine what goes through the wearer’s mind.

‘What shall I wear today? Ah yes, I’m flying, I think that the fellow passengers need a dose of radicalization’. ‘Wednesday: shall it be women’s rights or animal rights?’
‘I need a white T shirt with these jeans. Ah well, this is the only clean one left in the drawer. It will do.’

Or maybe they are really committed and wear one of these shirts every day?
Or maybe they just don this shirt without a second thought?

The questions in my head wouldn’t stop.

‘When was feminism radical?’
‘What does she mean by radical?’
‘What would it mean for women?’
‘What would it mean for society?’
‘What would it mean for me?’

Gender – a salient concern in CSR and business ethics literatures?
As it happens Kate Grosser, Julie Nelson and I had just put the finishing touches to an essay on the place of gender in the business ethics and corporate social responsibility academic literatures over the last quarter of a century.

So it was really great to see this topic that we had been weighing up in our usual academic ways was ‘out there on the streets’… or at least in the security check area…

Kate, Julie and I had found that the subject of gender had enjoyed some status in this literature (as measured by the number of articles published on the subject in the leading business ethics and corporate social responsibility journals).

The de-radicalization of feminist theory to an empirical variable
On closer analysis we were struck that, whereas the original debates in these literatures about gender had been inspired by the core of feminism (notably the concerns with gender relations and gender equality) this focus had subsequently appeared to get weaker. Only 20% of the papers in our study focused on this feminist core, and the remainder used gender as a variable in studies of attitudes towards social, environmental or economic issues, or of ethical dilemmas.

Moreover, we were surprised that only 15% of the studies addressing gender issues in the business ethics /corporate social responsibility literature were theoretical papers (and the majority of these referenced theory from outwith feminism). While empirical papers are clearly a vital part of the literature, theorization is necessary for evaluation of empirical work, and for framing the way academic subjects, in this case feminism, are thought about and studied in the empirical work.

We also noted that the empirical literature was overwhelmingly focused on countries in the ‘Global North’ despite many of the greatest challenges in gender relations and equality being in the ‘Global South’.

Reflecting on our academic journey into feminism, I wondered if what my fellow passenger meant by wearing that slogan was … ’Make feminism radical again by focusing on gender relations and equality’. But when I had finally plucked up the courage to ask her… she had gone.

P.S. My friend Lauren tells me that there are other feminist T-shirts available
… but none are quite as to the point as that on my fellow traveller…

Jeremy Moon is Velux Professor of Corporate Sustainability at the Centre for Corporate Social Responsibility, CBS. He has written widely about the rise, context, dynamics and impact of CSR. He is particularly interested in corporations’ political roles and in the regulation of CSR and corporate sustainability. Jeremy is the author of Corporate Social Responsibility: A Very Short Introduction (2014 Oxford) and co-author of Visible Hands: Government Regulation and International Business Responsibility (2017 Cambridge).

Pic by Jonathan Eyler-Werve, edited by BOS.

Really Fake

By Glen Whelan.

With generative technologies on their way to maturity, ‘Fake News’ may soon reach a whole new level of ‘realness’
No less than the authenticity and credibility of video and audio footage is at stake
Verified identities might help, but come with their own problems

Approximate reading time: 2-3 minutes

As little as five years ago the idea of ‘fake news’ referred to satires like The Daily Show or The Colbert Report. Now, fake news refers to phenomena that are ‘really fake’: i.e., news or events that are fabricated to appear real. Recent examples include those that place a target or puppet – such as Obama or Françoise Madeline Hardy – under the control of a puppeteer who directs the puppet’s facial expressions, speech, and so on.

Technically faking reality
Whilst we have long been told not to believe everything we see or read, and whilst photoshop and fashion and hip-hop and auto-tune have gone hand in hand for a while now, current developments look like a step change. One key technology behind these changes is Generative Adversarial Networks (GANs). A sub-field of deep learning (which Facebook, Google, and Microsoft all have a major interest in), GANs work by pitting two algorithmic models – a generative model and an adversary – against each other.

The generative model can be thought of as analogous to a team of counterfeiters, trying to produce fake currency and use it without detection, while the discriminative model is analogous to the police, trying to detect the counterfeit currency. Competition in this game drives both teams to improve their methods until the counterfeits are indistinguishable from the genuine articles. (Goodfellow et al., 2014: 1)

Although currently limited, machine learning expert Ian Goodfellow – who has a PhD from the University of Montréal, but now works for Google Brain – suggests that “the generation of YouTube fakes that are very plausible may be possible within three years”. Where all this is heading gives rise to two concerns.

Was it you?
The first concern is that our ability to distinguish between the fake and the real regarding other people is undermined. Once generative technologies hit a certain level of advancement, it will be prima facie impossible to tell whether or not a given piece of audio or video is a fake generated by a puppeteer, or a true piece of documented experience. When one realizes that this does not just apply to the powerful and famous, but to our partners, children and friends as well, the full extent of the problem becomes clear.

The second and related concern is that generative technologies might increase the likelihood of people raising doubts as to whether or not documented footage or recordings, of themselves, are true. A person filmed engaging in something embarrassing, unsavory, or outright criminal, could suggest that the footage in question is a fake generation, and not a real documentation of any actual event. Whereas the first concern relates to the ability to identify truths about other people, the second concern relates to people potentially escaping, or avoiding the consequences of, truths about themselves.

To be or not to be (verified)
In light of such, an increased push towards verification should be expected. Verified identities are already central to platforms such as Facebook, AirBnB and Twitter, and Amnesty International is involved in creating verification processes for ‘citizen media’ images or video that are relevant to human rights considerations.

In and of itself, this seems a good thing. But the fact that verification processes need to be organizationally controlled suggests prudence is warranted. It is not, for example, difficult to imagine one of the current tech giants coming to monopolize the world of verified interactions in both our private and public lives. As the threat of fake realities become ever present, then, we should remind ourselves that an increasingly verified existence would likely come with its own, all-encompassing, problems.

Glen Whelan teaches at McGill, is a GRB Fellow at CBS, a Visiting Scholar at York University’s Schulich School of Business, and the social media editor for the Journal of Business Ethics. His research focuses on the moral and political influence of corporations, and high-tech corporations in particular. He is on twitter @grwhelan.

Pic by EtiAmmos, Fotolia.

The Risks of Intuitive Thinking in Environmentally Friendly Clothing Consumption

By Kristian Steensen Nielsen & Wencke Gwozdz.

Clothing behaviors might be well-intended, but they do not necessarily reduce environmental impact
Environmentally friendly clothing in one geographical location may not be environmentally friendly in another
Our judgments are likely influenced by prevailing options of environmentally friendly clothing consumption, which may overshadow less known but more effective behaviors

Approximate reading time: 4-5 minutes

The production, purchase, maintenance, and disposal of clothing carry a heavy environmental burden. To reduce this burden, we need to change our clothing consumption behavior. An increasing number of consumers accept this notion, but what does it actually imply to make our clothing consumption more environmentally friendly? Should we purchase products made from organic cotton, reduce our clothing consumption, rent and share clothing, or all of the above?

In the preparation of a recently published research article (Gwozdz, Nielsen & Müller, 2017), we were confronted and puzzled by exactly these questions. What we came to realize was that all we really had was a bunch of intuitive judgments and assumptions about what actually constituted environmentally friendly clothing consumption. Relying on intuition is, however, a potentially risky route to take to reduce the environmental impact of clothing consumption.

Environmental Risks
While our intuitions sometimes serve us well, they can also lead us astray (Kahneman & Tversky, 1973). If behavioral scientists (or policy-makers or industry or NGOs) depend on intuitively-generated solutions to environmentally friendly clothing consumption, three immediate risks emerge.

The first, and most potent, risk is to identify environmentally friendly clothing behavior that are in fact not so environmentally friendly. This implies that, although the identified clothing behaviors might be well-intended, they do not reduce the environmental impact. For example, favoring wool-based clothing products over products made from other materials (e.g., cotton or polyester) may appear more natural and environmentally friendly, but may actually be worse for the environment due to its emission of the highly potent greenhouse gas methane.

Sheep Wool, Pic by Brett Neilson

The second risk is to universalize environmentally friendly clothing behaviors. What might be an environmentally friendly behavior in one geographical location may not be environmentally friendly in another. The reason is that the environmental impact of a clothing products and its maintenance can vary significantly in production method, energy supply systems, transportation distance and channel, or whether personal transportation is involved during the acquisition phase. For instance, clothing libraries can be a good alternative to acquire clothing items, but its environmental benefits depend on the mode of transportation during the acquisition phase (Roos et al., 2017). In cases where walking, biking or public transportation is used to come to a fashion library, its impact will be lower than conventional consumption alternatives. The environmental benefits of fashion libraries will, however, evaporate if the acquisition entails private car driving (unless supplied with renewable energy).

Transportation matters, Pic by University of Exeter

The third environmental risk of relying on intuitive judgments is that these judgments are likely influenced by prevailing options of environmentally friendly clothing consumption, which may overshadow, less known, more effective behaviors. In other words, the low hanging fruits may not be the most effective means. For example, many people perceive organic cotton as an environmentally friendly alternative to conventional cotton, whereas fewer people perceive secondhand clothing or reducing clothing consumption as being environmentally friendly alternatives. Organic cotton is, subsequently, more likely to be identified as a viable solution despite the fact that increasing the longevity of existing clothing (i.e. reducing consumption) is a much more effective way to lower the environmental impact of clothing (Roos et al., 2017). One reason is that organic cotton production requires more land use compared to conventional cotton. But, of course, known behaviors are easier replaced with similar behaviors (e.g., replace a t-shirt made of conventional cotton with one made of organic cotton) than with completely new behaviors (e.g., buying less).

Organic Cotton Yarn, Pic by Natalia Wilson

Ways Forward
The consequence of promoting mistaken “environmentally friendly” behaviors is that well-intended efforts achieve limited benefits for the environment. In some instances, they can even undermine the prospects of environmental progress. One approach to counteract the potentially detrimental consequences of misguided behaviors of environmentally friendly clothing consumption created through intuitive judgments is to shed light on the true environmental impact of clothing behaviors. Another is to send clear messages (see e.g. bioRE; respect-code) to consumers of which behaviors are environmentally superior to others. Informational systems have a strong influence on consumers’ ways to consume more environmentally friendly. If recommendations for misguided behaviors originate in the scientific community or amongst policy-makers and NGOs, we can actually take on the responsibility and change that through promoting more interdisciplinary collaborations between natural and behavioral scientists where we as behavioral scientists learn about the actual environmental impacts instead of making intuitive judgments. The identification of research-based target behaviors is of critical importance before undertaking behavioral campaigns or policy interventions.

Kristian Steensen Nielsen is a PhD fellow in environmentally friendly behavior at the Department of Management, Society and Communication, CBS. His main research interest is how self-control influences environmental behavior change.

Wencke Gwozdz is Associate Professor at the Department of Management, Society and Communication, CBS. Her main research focus is on transformative consumer research and sustainable consumption including public policy research, social marketing and quality of life research.

Pic by Studio Grand Ouest, Fotolia.

Behavioral Insights All Over the World: A New Study from cbsCSR, CBS GRB and Harvard University

By Cass R. Sunstein & Lucia Reisch.

Worldwide, officials are employing behavioral insights to improve policies in areas that include health, finance, highway safety, employment, discrimination, the environment, and consumer protection. Some of these policies take the form of mandates, incentives, and bans, but a prominent set of behaviorally informed tools involves information, warnings, reminders, social norms, and default rules. Insofar as they steer people in certain directions without imposing significant costs, tools of this kind are called “nudges”, a term coined by Cass R. Sunstein (a CBS Honorary Professor) and Richard Thaler, one of the leading US economists about a decade ago.

Do people like nudges?
Today, more than 150 governments worldwide make use of behavioral insights and “nudges” to influence consumer behavior and consumer choices. A recent OECD report published in March 2017 presents more than a hundred examples of how they work in practice. However, not much is known about whether citizens approve of these nudges as governmental policy tools. Some work has been done in the United States and in several nations in Europe, including our own study on “Do people like nudges?”, published 2016. With the aim to provide policy makers and the public debate with empirical evidence on public attitudes towards some of these nudges, we explored the reactions from a diverse array of citizens and began to “map” people’s views across the globe. One result is that the world’s nations fall into discernible categories.

Current literature on public acceptance of nudges offers five general lessons:

First, citizens in diverse nations generally approve of nudges, at least of the kind that have been adopted or under serious consideration in recent years.
Second, citizens do not approve of nudges that they perceive to be inconsistent with the interests or values of most choosers such as a default rule by which men’s last name would automatically change to that of their wives.
Third, citizens do not approve of nudges that are perceived as having an illicit goal, such as religious or political favoritism.
Fourth, citizens object to manipulation, but they define it quite narrowly, as in the cases of visual illusions to reduce speeding and subliminal advertising (the latter does not qualify as a nudge, though).
Fifth, and quite surprisingly, political affiliation is generally a weak predictor of citizens’ reactions to the tested nudges.

With respect to cross-national differences, there seems, thus far, to be only one major fault line. In an impressively wide array of democratic nations, including the United States, the United Kingdom, Italy, Germany, France, and Sweden, all five lessons apply (with relatively minor variations), and citizen evaluations are unexpectedly similar. But in two nations, approval rates are significantly lower. These nations are Denmark and Hungary. To be sure, majorities in both nations do tend to approve of the tested nudges, but the level of approval is consistently lower, and in some cases, approval rates fall below 50 percent. A full explanation for these lower approval rates has yet to be provided, but greater distrust or fear of government undoubtedly provides part of the picture.

Behavioral insights all over the world
In our most recent survey from November/December 2016, we offer results from Australia, Brazil, Canada, China, Japan, Russia, South Africa, and South Korea. These nations were chosen in order obtain a broad sample of countries with diversity along several lines. We conducted representative online surveys, providing data from about 1,000 respondents per country, who were asked whether they approve or disapprove of 15 selected nudges. In order to be able to compare and enlarge the overall data set, we used the same survey instrument and largely the same methodology applied in our earlier European study.

A general lesson is that majority support for nudges cuts across many nations with diverse cultures, political inclinations, and histories. At the same time, we find that the nations of the world can be provisionally grouped into three categories.

The first, consistent with the existing U.S. and European data and including several of the nations studied here, reflect all of the five lessons sketched above. Of the nations for which data are available, this is the largest group.
The second category, consistent with data from Denmark and Hungary, shows significantly lower approval rates; Japan now joins this category.
The third category, identified for the first time here, consists of nations with massively high approval ratings. China and South Korea are the current examples.

Lessons learned
For public officials, the major lesson is simple and positive: So long as the underlying end is legitimate, and so long as nudges are consistent with people’s values and interests, most citizens are offering an enthusiastic permission slip or green light. They are hardly troubled by nudges as such. Notably, the level of public support is likely to be significantly lower for mandates and bans, though of course the relevant subject area is important (people do not object to prohibitions on murder and assault).

Public approval – necessary but not sufficient
It is important to emphasize that surveys hardly tell officials everything they need to know. A full evaluation of the welfare effects of nudges, and of the underlying ethical issues, would be necessary to decide whether and how to nudge. A nudge might receive widespread public approval even though it would do little good and considerable harm – and even if it would, on reflection, raise troublesome questions on either utilitarian or deontological grounds. But insofar as officials are concerned about public opinion, they generally need not worry, at least with respect to the most of the nudges tested here.

Cross-national differences – an avenue for future research
With respect to cross-national differences, much remains to be learned. For example, we do not know whether the very high levels of support in China reflect trust in government, enthusiasm about the policy goals, adaptation to the extensive use of government power, or some form of “preference falsification”, producing misleadingly high levels of support in surveys. Nor do we know, as yet, whether many countries fall within the category of overwhelmingly pro-nudge nations, now containing only China and South Korea, or whether the category of more cautiously pro-nudge nations is small and greatly dominated, in terms of sheer numbers, by the principled pro-nudge consensus among democratic nations (as now appears). It also remains possible that some nations would show only minority support for the nudges tested here.

Read the full study here.

Lucia Reisch is a behavioral economist and full professor for intercultural consumer research and European consumer policy at the Copenhagen Business School. She is also Visiting Professor at Friedrichshafen’s Zeppelin University, Germany. She is currently chairing several German and European research projects in the field of sustainable development. The main focus of her work is on consumer, health and sustainability policy, empirical research into consumer behavior (in particular sustainable consumption and production) as well as behaviorally based regulation and innovation research.

Cass R. Sunstein is currently the Robert Walmsley University Professor at Harvard. From 2009 to 2012, he was Administrator of the White House Office of Information and Regulatory Affairs. He is the founder and director of the Program on Behavioral Economics and Public Policy at Harvard Law School. Mr. Sunstein has testified before congressional committees on many subjects, and he has been involved in constitution-making and law reform activities in a number of nations.

Follow Cass R. Sunstein on Twitter.

Dirty Oil or Green Energy in the Faroe Islands?

By Árni Johan Petersen.

These are the stories from the two divided camps in the Faroe Islands – please give your take on this dilemma. Should the Faroese explore and produce oil in the Faroe Islands that will contribute to global energy safety and stability to an ever growing global energy demand? Or should the Faroese stop this process now, and rethink the current state of the world where the Faroe Islands could become the front-runner for green solutions to statuette an example, and stop the greenhouse gasses deriving from fossil fuel energy by saying no to oil?

Background
The 4^th license round for rights to oil exploration in the Faroe Islands was May 17^th 2017, and the search for oil in the offshore subsoil in the Faroe Islands might continue if there is an interest from international oil companies to invest in the exploration. Since the first license round in 2000 there have been conducted nine drillings in the Faroese offshore subsoil without any commercial fund but results have concluded the subsoil to have a hydro-carbon active system in place.

Today, the Faroese economy is strong, unemployment rate is close to 2 per cent, young Faroese are moving back home, population has surpassed 50.000 inhabitants for the first time, salmon industry is booming (has done so for seven years), tourism is booming (four years), and the fishery is booming. A society in prosperity where the incentives to create new jobs might be vanishing because there are no Faroese to fill in the positions and foreign workforce might become a necessary solution to keep the (capitalistic) wheels going.

Pro-oil exploration Camp
The Faroese Ben Arabo, CEO at Atlantic Petroleum, argues that the Faroe Islands should explore for oil in the Faroese subsoil. The world, he argues, demands oil and gas in large quantities because the world consumes 100 million barrels of oil every day, and the demand is increasing. Oil, as a percentage of the total world energy consumption, is decreasing but the growth of energy demand is so great that the demand for oil in quantity increases every year. Currently, he continues, approximately one third of the global energy demand derives from oil, one third from coal, and one fourth from gas. The rest derives from nuclear energy, water and other renewable energy currently supplying one-digit percentage of the global energy production.

We, who live in the privileged part of the world, Ben argues, take energy stability and security for granted while other parts of the world, e.g. India, China, Indonesia etc., do not have this luxury. Ben recommends people who think they could survive without oil should examine how long time passes before they use the first object that demands oil in its production process (e.g. tooth brush). Hydrocarbon is present in a large numbers of product ranging from mountain helmet, solar panels, aspirin, and tooth paste. The wishful thinking of “no-oil-tomorrow” is based on ideology rather than technology, Ben concludes.

Resistance Camp
For the first time since the Faroese started to dream about finding oil we are observing resistance in the Faroese community. These are mainly environmentalists who have joined forces in an attempt to stop the oil exploration in the Faroe Islands. One local NGO, Ringrás, is represented by Ingmar Valdemarsson á Løgmansbø who argues:

“The context of the opening of the fourth Faroese hydrocarbon licensing round is marked by increasing ecological turmoil and biosphere degradation stemming from anthropogenic climate change and widespread habitat destruction. Fundamentally, our global society is built upon a measure of success (unrelenting growth) which, when achieved, clashes with the integrity of the interconnected ecosystems that make life on earth viable, and thus, enable civilisation as we know it.

The challenges we face, as a country and a global community, are much greater and more fundamental than the question of energy supply alone. But nevertheless, it is evident that the energy systems of the future must, by necessity, be renewable, if they – and we – are to last. Reality is catching up with our complacency and the thwarted efforts to ditch fossil fuels and racing ahead of our expectations, but luckily on two fronts:

The forecast dangers of rapid climate change are showing themselves at an accelerated, unexpected and ominous pace.
Key renewable technologies have matured to take on and render fossil fuels largely obsolete.

Focusing on the latter in relation to the former, it is entirely untimely, unnecessary and unethical for the Faroe Islands to venture into a dirty industry that would threaten the mainstays of the Faroese economy, namely the fishing industry and tourism, whilst contributing to an uncertain future in favor of very dubious short-term financial gain, prone to suffer from stranded assets as disruptive technologies coupled with global weirding and climate policy expedite the transition to a low-carbon society. This is underlined by the recent developments in India, where 14 Gt of planned coal power stations have been cancelled in May alone on account of Solar PV directly outcompeting coal.

In this environment of change, we must embrace the shift away from fossil fuels and take on the potential leading role that our national goal of 100% renewable electricity generation by 2030 promises to imbue us with. This path is what we as a country need and what the world needs and, best of all, it won’t cost the world.”

According to Ingmar the Faroe Islands, the Faroese Government, has signed the Paris Agreement (COP21) which includes lowering the carbon emission to decrease the global warming. The Faroese Minister of Industry and Foreign Affairs, Poul Michelsen, has also publically stated his support to the agreement and the Faroe Islands should be the frontrunner in the battle against fossil fuel emission adding to the fire of global warming. The long term perspective, according to Ingmar, is that this will be the sustainable solution regarding environment, society, and economics because the Faroe Islands are heavily dependent on their fisheries, salmon farming, and tourism. Oil industry will add to the carbon quantity in the natural environment and changes in the ecology will alter the livelihood of the resources in the sea. This, in turn, will negatively affect the natural resources in the Faroe Islands harming the economy and society in the long run. Exploring for oil has to stop now!

The Broader Picture
The International Energy Agency (IEA) recommends exploring for more oil in the Scandinavian area because this will provide global energy stability and security. This argument is based on the fact that the political system is transparent, and the regulation for oil activities is progressive in terms of natural environment, work processes, and overall safety. The Middle East is, according to IEA, not the most reliable nor stable area, while Scandinavian countries are triple-A-democracies, market economies and predictable partners.

Producing more oil will lower the price of oil and this automatically decreases the incentives to invest in research and development of renewable energy solutions because the energy consumer demand will, in general, follow the least expensive solution. In contrast, if the oil production is stopped the oil price will go up and the demand for alternative solutions becomes pressing and the investors will predict return on investment. This will speed up the process to develop renewable energy solutions but we will probably experience political power changes on the global arena, e.g. a stronger Middle East. The question is, for how long? The sooner the world moves to alternative energy solution the global arena will change, again, and this might be the only sustainable solution because the emission and global warming is already at a critical stage.

So, should the Faroese provide for energy stability and security, or should they be the front-runners to say “no” to oil? Could the Faroe Islands become a role model for other societies in the Arctic and beyond? And if the Faroe Islands can do this, could other countries learn from this small country? Is the Faroese political (Governmental) agenda hypocritical because of its duplicity? Or is this hypocrisy a necessary aspiration to prosper as a small society in the Arctic that might spread to other small societies in the Arctic?

Árni Petersen is PhD-Fellow at the Department of Management, Society and Communication at Copenhagen Business School. His PhD project pursues the research question: “How does future expectation of wealth deriving from the oil affect the Faroese society and the potential outcomes in the future in the Faroe Islands?” His research features an in-depth case study of the Faroese Oil Industry, including interviews, observations, and local newspaper articles about the oil industry.

You can find Árni on LinkedIn.

Pics by BSEE & Christian Reimer, edited by BOS.

How Businesses Can Profit with Purpose

By Robert Strand.

Money helps us meet our basic needs, but what about our need for meaning? Businesses will profit — not just financially — by finding their souls.

How do you motivate someone to work? For many the response is quite simple: money. Want more work? Pay more money. Economists have long instructed us that human beings are rational self-interest maximizers motivated solely by the dollar.

The discipline of economics has historically dominated business schools and management research and, it follows, that the fundamental assumption of self-interest maximization is applied to companies. As the economist Milton Friedman famously wrote “the social responsibility of business is to increase its profits.”

A more powerful motivator
However, the view that money is the way to motivate someone to work is only half correct. And it is half terribly, terribly wrong. The research is in and it is clear: For knowledge workers, one must pay enough money to take the issue of money off the table. But beyond that, money is a terrible motivator.

In fact, money can be a demotivator as incentive plans often end up encouraging employees to think more about money than the work. Instead, purpose is increasingly recognized as the greatest motivator for employees and organizing force.

Purpose grows in importance with new generations of employees who are increasingly demanding that the organizations at which they spend their precious time connect to something much bigger. Great thinkers like Daniel Pink and my Berkeley-Haas colleague Barry Schwartz have much to say in support of this.

Can a business self-actualize?
Themes like social inclusion and climate change represent opportunities for companies to connect their employees with purpose. We recently held an event to explore how companies like Adobe and Microsoft are innovating their hiring practices to make it more possible for individuals from underrepresented populations to fulfill their potentials at their firms and, ultimately, encourage greater social inclusion.

For many large, established companies, connecting employees with a sense of purpose is remarkably challenging. This is where a corporate social responsibility (CSR) or sustainability group can serve an important role. CSR and sustainability groups can identify material issues for that company, such as encouraging social inclusion or battling climate change, and bring these issues into the company. Profits are a bit to the company like oxygen is to the body: Necessary for survival but a pretty lousy thing to live for. Companies that connect their employees to a greater sense of purpose are those that will foster healthier organizations and ultimately realize greater profits.

This article was first published in the San Francisco Chronicle Late Edition, 28 June 2017.

Robert Strand is Sustainability Professor and Executive Director at Berkeley-Haas Center for Responsible Business. Follow him on Twitter @robertgstrand.

Pic by Hamza Butt.

How the Fringe is Becoming Mainstream. Or is it the Other Way Around?

By Hans Krause Hansen.

These are indeed interesting times! as one of my good colleagues recently exclaimed over a cup of coffee. Disinformation and conspiracy theories all over the place. Obama now accused of being the founding father of ISIS. Can you believe it? Politics is definitely going berserk.

Needless to say, I happened to be in complete agreement with my colleague’s diagnosis. And of course, just as confused. A few days later two fresh pieces of research arrived on my desk, helping me to make some sense of the mess. What is disinformation today? What’s its role in the new media ecology? And what are the social and political dynamics behind and implications of all this?

Media Manipulation and Disinformation Online by Alice Marwick and Rebecca Lewis from the Data & Society Research Institute investigates the spread of radical rightwing beliefs in the US. The study shows how various subcultures take advantage of the Internet to manipulate mainstream media and propagate their ideas. Michael Barkun’s Conspiracy Theory as Stigmatized Knowledge, recently published in the journal Diogenes, explores the migration of conspiracy theory from the fringe to the mainstream. Both texts provide fresh food for thought on issues that are becoming more and more important every day.

Manipulation and disinformation online
Media Manipulation and Disinformation Online is written in the spirit of “if you wish to fight disinformation, you need to know where it comes from and how it spreads.” It explores the complicated and intersecting networks of online subcultures in the US, including how white nationalists, men’s rights advocates, anti-feminists, trolls, techno-libertarians, anti-migration activists, anti-Semitists, and bored young people, amongst many others, disseminate their ideas via sophisticated techniques and countless interlinked platforms. More than anything, it demonstrates how vulnerable the Internet and mass media are to manipulation.

But at a time when the most valued content seems to be that which is most likely to attract attention – this is what the authors aptly term the “attention economy” – it may be of some consolation that mediated disinformation is actually no novelty. State sponsored disinformation if not propaganda via mass media was commonplace in modern Western democracies during the Cold War, years before the advent of the Internet. In the pre-digital age, corporate marketing campaigns and branding efforts often proved to have a relatively tensed relationship to common standards of truth, just as they do today. Sweeping claims that we have come to live in a “post-truth” society, in part due to the Internet and social media, should be taken with a big grant of salt. Things happen to be considerably more complex.

Conspiracy theory, offline
But much has of course changed, and there is a real issue today with regard to the ways in which knowledge production and circulation is authorized and validated. Especially intriguing in Alice Marwick and Rebecca Lewis’ Media Manipulation and Disinformation Online is the observation that Internet platforms have become fertile ground for the growth and spread of conspiracy theories, including that mass media “has greatly profited off the appeal of conspiracies despite their potential for harm” (p. 19).

But what are conspiracy theories? How do they thrive in the new media environment and its associated attention economy? In Conspiracy Theories as Stigmatized Knowledge, Michael Barkun describes conspiracies as intellectual constructs, which are different from actual conspiracies: covert plots, carried out by two or more people. Actual conspiracies we find since the dawn of time. In modern times, the Watergate Affair is still the case par excellence. But all countries have had their conspiracies. High politics aside, innocent but also potentially dangerous conspiracies are natural ingredients of social life in the workplace and neighborhood.

Research on conspiracy theory has a long pedigree. It bears a lot of relevance to contemporary scholarship on transparency, secrecy and suspicion, given the fact that much of this work is concerned with invisibilities, the production of truth and the always troublesome process of holding accountable the powers that be. Research on conspiracy theories is also interesting in the context of what some writers have called the “deep state theory”, according to which networks of people within the bureaucracy are said to be able to exercise a hidden will on their own.

Inspirational detours aside, a good starting point for understanding the place of conspiracy theories in today’s rapidly evolving media ecology is the fact that conspiracy theorists typically claim to have special knowledge and to speak the truth. But their claims are at odds with some official or dominant version of truth. Barkun conceptualizes conspiracy theories as stigmatized knowledge. Ignored or rejected by those institutions that, in most democracies, commonly relied on the respect to the validation and certification of claims to knowledge – government agencies, universities and the traditional mass media – stigmatized knowledge exhibits a deep skepticism towards such institutions. These are considered power centers, each with their own secrets and deceptions, which the conspiracy theorist seeks to unmask.

Conspiracy theory, online
Until recently, conspiracy theory was a fringe phenomenon and in effect largely excluded from mainstream media. There was a relatively clear boundary between what was considered fringe and mainstream in the public sphere. Gatekeepers employed by research and educational institutions, including the editors of major media, maintained and nurtured the boundary.

This situation begins to change in the 1990s. Digitization enables people, including politicians, to create individual platforms and to communicate, bypassing established media and institutions. The public sphere, if ever unitary, transforms into a globalized hydra-faced machinery with multiple access points and dark zones. Content is no longer filtered the way it was and “fringe ideas” can more easily migrate into mainstream media subject to the ruthless forces of market competition.A proliferating public mistrust of political authority – resulting from economic and financial crises, governmental secrecy and endless cases of corruption that feed public skepticism – also prompts mainstream institutions and their gatekeepers to consider non-orthodox accounts of reality more seriously.

To cut a long story short: If conspiracy theories have always been imbricated in power relations and yet to a large extent been successfully ignored, the once clear boundary between the fringe and the mainstream has eroded. And with stigmatized knowledge entering mainstream media, a process of de-stigmatization begins to take place. Established media and political institutions begin to confer pseudo legitimacy on conspiracy theories. For example, the so-called Obama “birther” story, vividly promoted by the current president of the US, gained prominence because national media first exposed it and the White House later produced birth documents in response to pressures, all of which gave credibility to what in the beginning had been nothing more than a rumor emerging from the fringe.

Today, we know that even a modest blueprinting of conspiracy theories through established mass media can co-develop with political change that brings groups of people into formal political power that were once on the fringe producing stigmatized knowledge en masse. But now mostly mainstream. Elite or not.

What’s next? That mainstream goes completely fringe? Yes, perhaps.

What’s next for me? A damn fine cup of coffee with my good colleague, quickly, please…

Hans Krause Hansen is Professor at the Department of Management, Society and Communication at Copenhagen Business School. He teaches and researches about various aspects of public and private governance, including corruption, anti-corruption and transparency regimes in the global North and South.

Pic by The Public Domain Review, edited by BOS.

Malcolm McIntosh – Tribute to an Academic Entrepreneur

By Andreas Rasche.

Malcolm McIntosh passed away on 7 June 2017. We lost, as Sandra Waddock recently remarked, an intellectual shaman – someone who cared deeply about the state of the world and who was thinking so wonderfully enthusiastic, “wild” and unconventional about corporate responsibility and sustainability.

I first met Malcolm at the 2^nd PRME Global Forum in New York in 2010. Ever since we had many thought-provoking exchanges about academic and non-academic matters, most often around the importance of health and happiness. What always struck me was Malcolm’s desire to make a difference; he not only was an intellectual shaman but also an academic entrepreneur.

He belonged to the few of us who knew how to navigate the worlds of “practice” and “academia” (whatever these labels may mean). Malcolm recognized that good research is about creating an impact; it is about changing peoples’ behavior and making them think about whatever problem we address through our scholarly work. While the academic community has recently started to discuss impact (mostly instrumentally driven by the UK REF system), Malcolm more pragmatically engaged with impact in his own way. He founded the Journal of Corporate Citizenship which until today puts practical relevance and impact high on its agenda; he created one of the first research centers on what back then was coined “corporate citizenship” at the University of Warwick; and he collaborated early on with the UN Global Compact and thereby helped to enact a global action network dedicated to corporate sustainability.

Malcolm did all this because and despite of the omnipresent pressures that surround the academic system, such as publishing in “A” journals (which usually have a quite narrow definition of impact). He published many influential books and articles on different topics related to corporate responsibility and sustainability. He co-edited the first book on the UN Global Compact titled “Learning to Talk” (Greenleaf, 2004). The book captured very well the zeitgeist of the CSR/sustainability movement – back then, it was very much about different societal actors learning to engage in meaningful discussions. Later, Malcolm looked at macro-level change when publishing “SEE Change – Making the Transition to a Sustainable Enterprise Economy” (together with Sandra Waddock, Greenleaf, 2011). The book skillfully outlined how systems-level transformations can happen and what it takes to move from organizational-level efforts (like CSR) to a reform of the whole economic system.

Malcolm’s work lives on in the work of the many people he inspired throughout his life (including my own academic work). He worked relentlessly to open doors for new ideas to take shape. He will be missed but he won’t be forgotten, because every entrepreneur leaves a trace. Malcolm left many of them…

Andreas Rasche is Professor of Business in Society at Copenhagen Business School and Visiting Professor at the Stockholm School of Economics. He can be reached at: ar.msc@cbs.dk and @RascheAndreas

Pic by Colin Poellot.

When diversity is everyone’s business

By Jannick Friis Christensen.

In April, CBS celebrated not only its centenary but also how diverse the business school has become over the years on Diversity Day 2017. If unconscious bias—along with stereotypes and prejudice—is what undermines diversity efforts in organisations, then, what difference can such a (diversity) day make? We took an experimental research approach to organising CBS Diversity Day to find out.

The purpose of CBS Diversity Day is to put a strong focus on diversity and inclusion both internally in our own organisation and in educating future business leaders. One way of supporting this double purpose is to organise events that introduce the concepts of diversity and inclusion to the 22,000 students at CBS as well as to our researchers and administrative staff. In particular, we do this on Diversity Day.

How to approach organisational diversity?

In previous years, focus has been on putting to the forefront best practices in companies that manage to use their core competencies in creating an organisation, which is sustainable both financially and socially – in other words the good business case. We believe that CBS should be perceived as an organisation committed to promoting diversity and inclusion.

We would like to acquaint the CBS community with the diversity represented by the people—for example ability/disability, sexual orientation, gender, ethnicity, religion, and nationality—who study and work at CBS and how their experiences may differ as a result of those differences. In doing so, emphasis this year was on the practical implications of how to approach organisational diversity in a way meaningful to all parties involved, including those aforementioned groups typically casted as being diverse. It was therefore not a question of defining what diversity is or if it ‘pays off’ but rather to explore how diversity issues may inspire different practices for alternative and more inclusive organising.

Researching diversity requires diverse approaches

The idea was to challenge any ‘conventional’ knowledge diversity and inclusion and we were interested in measuring the overall potential effect(s) of Diversity Day, that is, the combination of events that included logical-rational as well as emotional and action- and solution-oriented presentations. All presentations were live-streamed and recorded and can be watched via this link.

A citizen science approach was adopted prior to Diversity Day to allow the student population at Copenhagen Business School to identity the problem that will be turned into our research issue. This was done by having a random sample of students fill in a questionnaire about the diversity issues of ethnicity and religion in Denmark. This part of the study is expected to show to what degree students hold explicit bias towards ethnic and religious minorities.

To measure implicit bias and the potential impact of Diversity Day we designed clicker tests that were conducted before and after each scheduled event. We expect the results from these tests to show a reduction in latency as the day progressed, since the respondents ought to spend less time becoming consciously aware of own unconscious biases due to a heightened awareness level prompted by the critically reflexive focus on various diversity issues. The results will, however, not be able to say anything about whether this change (if any) will last or whether it I will lead to changes in behaviour – only that a momentary bias reduction can be achieved.

The final part of the project consists of focus group interviews to get an in-depth understanding of participants’ own perceptions of and experiences with Diversity Day as well as to follow up on the questionnaires and clicker tests. Due to the experimental research design we need elaborations on the various aspects from the participants’ perspectives. The interviews take place in weeks 25 and 26 so if you attended CBS Diversity Day 2017 on 27 April we would like to hear from you. Sign up via this link by adding your name + email and select the dates/timeslots that fit your calendar. The interviews will take approximately 1-1½ hours and the questions will be open-ended for you to reflect on what you got out of Diversity Day. We aim for including five to seven people in each focus group and the interviews will be anonymized.

The next big diversity event is on 19 August 2017 where CBS for the first time joins the Copenhagen Pride Parade from Frederiksberg Town Hall at 13:00. Check cbs.dk for updates.

About Diversity Day

CBS Diversity Day 2017 was co-organised by Jannick Friis Christensen and Associate Professor Sara Louise Muhr (Dept. of Organization). The specific research project discussed in this blog post is conducted in collaboration with Associate Professor Ana Maria Munar (Dept. of International Economics and Management) and Postdoc Kristian Møller Moltke Martiny (University of Copenhagen).

Jannick Friis Christensen is PhD Fellow at the Department of Organization. His research project seeks to develop new methods for intervening diversity by bridging critical performativity theory with organisational practice and managerial discourse. It explores—ethnographically—the norms of diversity practices in contemporary organisations, granting insights into how perceptions of diversity are constructed discursively, and how they govern people’s conduct. And it challenges existing practices and render them productive through continuous critical reflection on the underlying norms. You can find Jannick on LinkedIn, Instragram, Twitter and Facebook.

Pic by Lise Søstrøm (MSC)

The “sandwich trick”: How ethically questionable practices get normalized

By Dennis Schoeneborn & Fabian Homberg.

At some resort hotels in Las Vegas, it is an established practice that guests at check-in hand-over to the receptionist a ‘$20 sandwich” (i.e. a banknote slipped between credit card and ID) in order to attain a room upgrade. Such benefits can include luxurious suites, top floor rooms with views, etc. In a recent study, Dennis Schoeneborn (Copenhagen Business School) and Fabian Homberg (Southampton Business School) have examined this ethically questionable practice that can be seen either as a “tip” or rather as a “bribe”, since it is paid before any services are received and with a clear expectation of reciprocity. Their study has been accepted for publication and is forthcoming at the Journal of Business Ethics.

In their article, the two researchers present findings from analyzing users self-reports on the website Frontdesktip.com that includes numerous stories of “succeeding” or “failing” when “playing the sandwich trick”. To give one example – one guest named “J.”, staying at the Bally’s Hotel, reports: The receptionist “asked for my driver’s license and credit card. I slid the $20 sandwich over, and before releasing the sandwich I asked ‘Are there any complimentary upgrades available?’ He immediately knew what I was talking about. He nodded his head, placed my sandwich under the counter on the keyboard and began typing away. Within a few moments, […] [w]e were upgraded to a King JR Suite in the North Tower. Well worth the $20.”

By studying self-reports of playing the “$20 sandwich trick”, the researchers found that this ethically questionable practice “worked” especially when hotel guests engaged in informal interactions that allowed to avoid the social stigma of bribery, for instance, by making small talk with the receptionist or claiming to be celebrating a “special occasion” (e.g., a birthday or anniversary). Based on these findings, the study makes an important contribution to existing understandings of how typified social interactions can stabilize and “normalize” petty forms of corruption or other ethically questionable practices.

You can find the full article here: Schoeneborn, D., & Homberg, F. (forthcoming). Goffman’s Return to Las Vegas: Studying Corruption as Social Interaction. Journal of Business Ethics.

Dennis Schoeneborn is a Professor (MSO) of Organization, Communication, and CSR at Copenhagen Business School (Denmark). Fabian Homberg is an Associate Professor of Human Resources and Organizational Behavior at Southampton Business School (UK).

Pic by Max Pixel

What if unethical behavior is just matter out of place?

By Anna Kirkebæk Gosovic.

It’s always puzzled me why it is that we might share words and concepts but that the meaning we fill into these concepts is very different. Kinda like a hotdog. Danish hot dog makers enjoy to fill it with important hotdog defining ingredients such as remoulade, mustard and pickles, whereas rumor has it that Swedish hot dog makers put a shrimp-mayo substance (the horror) on their hot dogs, and American ones don’t even put ketchup (seriously, just a bread and a sausage?).

Anyways, the point is that Danes, Swedes and Americans all call it a hotdog, although they don’t agree on what it actually consists of, what is right (onions and pickles of course) and what is wrong (shrimp-mayo, obviously). Banal observation, perhaps, but don’t worry – there is a point (also, you have to bear with me, as I’m a brand new PhD student and not yet as clever as the other bloggers).

Schooled as an anthropologist, I recently started my PhD study on how to ensure ethical standards within a multinational pharmaceutical corporation. As a point of departure, and trying to map out how corporations deal with this challenge, I started consulting the literature on business ethics in cross-cultural contexts.

As I read along, I realized that scholars (and companies) actually seem rather sensitive to cultural differences, and that local responsiveness to cultural norms and practices is considered beneficial and even necessary in many aspects of business operations. However, at the same time, within the field of business ethics, what may be otherwise recognized as cultural differences to be respected and responded to, seems here to somehow transform into unethical behavior not to be tolerated.

Take for example the reciprocal systems of dinner invitations, gift giving and thorough social interaction that comprise an inherent part of establishing relationships in parts of South East Asia. This can be interpreted as a cultural practice of creating good business relations. However, in a business ethics context, most (Western) ethical standards do not allow for e.g. gifts or expensive dinners to enter business relations. In these contexts, they do not keep their cultural label as gifts form the context in which they originate. Rather, they get a new cultural label from the context www.buy-trusted-tablets.com of Western ethics as something resembling corruption.

So – how can gifts (which for most of us has positive connotations) suddenly become corruption (which for most of us has negative connotations) when entering a business relation governed by Western principles for right or wrong? The answer might lie with an anthropological classic on purity and danger.
In her famous work on dirt, anthropologist Mary Douglas argues that notions of dirt express symbolic systems within a culture. Efforts to get rid of dirt, she writes, are not governed by an anxiety to escape disease. Rather, we are reordering our environment, making it conform to an idea that we share within our culture of what is dirty and what is not.

In my early years as an anthropology student, one lecturer explained Douglas’ theory like food on the shirt. In my opinion, an amazingly pedagogical way of explaining a basic anthropological theory which I will attempt to repeat:

It’s really rather simple. It’s about food and dirt. Perhaps the aforementioned hotdog should reenter the scene here. The Danish one with all the sauces, of course. While this hotdog is in your hand, it’s food. It’s a mouth watering hotdog just waiting to be eaten. But when you drop some of it (and believe me, you will) onto your shirt, it is no longer food. It’s dirt. Thus, the entire nature of a thing or a concept can change completely according to the context in which it is located and our culturally embedded understandings of that context’s rights and wrongs (hotdog in hand = good, hotdog on shirt = bad).

Douglas introduces the concept of matter out of place, which is a conceptualization of the ways in which we interpret the things we are exposed to and the understanding of where they belong. The hotdog belongs in your hand and not on your shirt. Therefore, when the matter of the hotdog is on your shirt, it transforms its qualities from being a hotdog to being dirt. It’s matter out of place.

Tongue in the anthropological cheek, I find it interesting to ask the business ethics community: What if the same goes for business ethics? What if all the things we consider unethical are merely not conforming to an idea we share within our culture of what is right and what is wrong? What I the logic governing the notion of say, e.g. bribery is similar to the notion of food and dirt: gifts in a local cultural system = good, gifts in a business relation = bad?

And if we try to conceptualize business ethics in this way – what does that do to our understanding of unethical practice? Would that be a move towards moral relativism? Or merely an attempt open up for a more nuanced approach to business ethics where we can also explore the ethical actions that companies take which do not conform to our (Western) understandings of rights and wrongs? Would that dilute the ethical principles of corporations? Or would it break a Western ethical hegemony? Is unethical behavior really just matter out of place? And lastly, is such an approach even manageable for corporations on a practical level?

I don’t know. But I will surely think about it some more.

Anna Kirkebæk Gosovic is PhD student at the Department for Management, Society and Communication at Copenhagen Business School. She is working on how to ensure ethical standards within a multinational pharmaceutical corporation.

Pic by Pixabay

Are you choosing what you really want?

By Jan Michael Bauer.

The value of individual freedom is rarely disputed within the Western society. However, more freedom is usually accompanied with making more choices, which might not be beneficial to everyone. For instance, the act of choosing itself can be burdensome, particularly when choices are complex and we face a large number of options. More importantly, can we trust that our own decisions are a true reflection of what we really want, if we accept the reality of our cognitive limitations and a manipulative environment?

Our economic system and democracy are both based on the principle that people know what is best for them and their decisions speak through their purchases in stores and their votes at the ballot box. This principle is also at the core of the neo-classical economic model that dominated the field over most of the 20th century. The underlying assumption is that people’s actions within the market place are the result of a well-considered reflection about the best use of limited resources to maximize their own well-being.

Even though this assumption sounds intuitive, it should be no news to most people that we not always act in our own best interest. Too familiar is the feeling of regret about drinking a glass too much on the night before, eating that second piece of chocolate cake or procrastinating instead of getting started with something unpleasant but important. This reality about human decision-making has entered the field of economics over the last decades, acknowledging that people are neither all-knowing nor perfect calculators and that their decisions are influenced by their feelings, worries and believes that not always accurately reflect objective realities.

Predictably irrational

It is now well-established in economics that people sometimes behave in a seemingly irrational way and that these deviations from the rational choice are systematic and therefore predictable. For instance, people are more likely to pay a bill on time if they fear a late fee, rather than the prospect of an early payer discount of similar monetary value. A simple change in the wording of two mathematically similar choices does influence our decisions. Such biases can often be explained by the so-called dual process theory and attributed to people’s limited cognitive resources resulting in an inability of carefully evaluating each of our decisions in daily life.

Most people are unaware that their choices are subject to such systematic irrationalities, but given the sound scientific evidence, we can be quite certain that people are often myopic, overconfident, or loss avers – just to name a few from a much longer list. Even when confronted with these scientific insights, it is not easy to accept that we have such biases which deem us irrational. This is however important as these biases are not only in the way of our long-term well-being, but make us susceptible to manipulation. If the way a choice is presented to us affects our decision, the person deciding the way of presentation (sometimes named choice architect) has the ability to influence our choice.

Phishing for Phools

If we accept that people are susceptible to influence, tend to make bad decisions under stress, and can be fooled, we might not be surprised that some people aim to exploit those weaknesses to make profits. A notion highlighted by “Phishing for Phools”, a recent book by Nobel Prize-winning Economists George Akerlof and Robert Shiller. They argue that the free market, despite all its contribution to today’s prosperity, is a place for profit oriented individuals to fish for fools and where those prevail who capitalize best on exploiting human weaknesses. Food choices are an excellent example where companies try to seduce us with their tempting products and benefit from our failure to stick to a healthier diet. Fishing in the political landscape might not be much different from the market place. With the additional help of technology, marketers and campaign managers can make increasingly use of behavioural insights to promote their product or candidate.

What can be done?

Therefore, it is essential that people obtain a deeper understanding of their own psychological weaknesses and receive guidance how and when we are most likely to be manipulable. Even though it is impossible to be constantly aware of all the hooks surrounding us, education about our cognitive biases might help avoiding at least some of them in the market place (e.g. by reading Dan Ariely’s work).

Additionally, about 180 governments worldwide, the European Union and many international organizations enrich regulation with behaviour insights by acknowledging the multiple caveats of human decision-making. Behaviorally informed policy aims to create a choice architecture where people naturally gravitate towards decisions most likely in their own long-term interest. Working as a counterforce against commercial influence, regulation can also help consumers to make informed decisions by mandating the disclosure of important information presented in a simple and meaningful way.

Designing such policies, however, requires a detailed understanding of the relevant processes involved into human decision-making. As part of the EU research project Nudge-it, we aim to increase the knowledge specifically about food choice, which might translate into novel policy tools and help tackling the obesity epidemic.

Jan is assistant professor at the CBS Department of Management, Society and Communication. His main research interests are in the fields of health economics and consumer behaviour. As part of the Nudge-it Project, he currently focuses on decision-making and fostering healthier food choices.

Pic by Windell Oskay, Flickr

The Impact of Impact: Learning experience from the UK

By Mark Learmonth.

Who are we talking to when we write our articles? Does our research make any difference to the world ‘out there’, or are we talking exclusively to fellow academics? The UK government has taken the line that too often academics have simply been talking to one another in their research papers. So they are actively encouraging us to try and make our work matter outside academia, and now measure the impact of our work officially. In this measurement exercise, impact is defined as: “an effect on, change or benefit to the economy, society, culture, public policy or services, health, the environment or quality of life, beyond academia.” Indeed, institutions are now being rewarded (both in cash and in increased reputation) for being able to demonstrate this kind of impact on the world. Here’s my own personal take on some of the key debates.

The Research Excellence Framework

Impact was measured for the first time as part of the 2014 Research Excellence Framework (REF), the UK-wide system for assessing the quality of research in UK higher education institutions. The REF is an assessment which: “provides accountability for public investment in research and produces evidence of the benefits of this investment … [it also provides] benchmarking information and establishes reputational yardsticks, for use within the higher education sector and for public information”. This means, among other things, that the quality of the research conducted in each institution – and within their different schools and departments – can all be ranked against one another using a common metric. My business school in Durham, for instance, came 20th out of the 100 and odd business schools in the UK. In other words, REF matters, and it matters a lot! Impact was a significant factor – counting for 20% of our overall score. One of the implications of REF mattering so much is that everything must be officially defined in great detail – including what counts as impact.

The impact of red-tape

I won’t bore you with the minutiae of the regulations. It’s enough to say that the way impact was measured was through schools producing case studies that had to be written according to pre-defined criteria. A key issue was to be able to demonstrate convincingly that the “effect change or benefit” we were claiming for our research was in fact linked directly to the research. This was no easy task, given how multi-faceted any such change is likely to be. Even when, in common-sense terms, research had clearly had an impact, we could not always make out story fit into the formal requirements set out for impact case studies.

The impact of impact

It is interesting to reflect on the cultural changes that the UK’s experiment with impact (and there are certainly no plans to abandon it) may have brought about. The worst effects of the nay-sayers have not come to pass. Even though impact counts for 20% of overall REF scores, the case study format (for all its faults) has at least meant that, in practice, only a relatively small handful of research articles need to have had impact in order for schools still to score highly. So, at least as far as the REF is concerned, blue-skies research can continue much as before. Furthermore, the recent Stern Review, an evaluation of REF 2014, has recommended significantly broadening the criteria used to measure impact in order to address some of the acknowledged difficulties with the current approach. And although some academics remain cynical about the whole issue, most of us are buying in to the agenda, at least to some extent. After all, does anyone really want to conduct research that never influences anything (other than, perhaps, getting a handful of other academics to agree with us)? I, along with most of my colleagues, now have a section on our curriculum vitae headed “impact” in which we suggest how our research might matter to the wider world.

Would I recommend “impact” for Denmark?

Personally, I’ve changed my views about impact since 2009. Like a lot of other academics, I’m naturally suspicious of governments imposing anything on us. Still, overall, I am now pretty positive about the impact of impact. The doomsday scenarios about the end of blue-skies work and neo-liberal appropriation have not come about. And on a more positive note, the impact agenda has helpfully raised the question of why we do the work we do, and made us think about who might be interested in it. I now find myself turning some of my academic articles into blogs for a general audience, in part, as a potential “pathway” to impact. Here’s an example. So, as long as it’s done sensitively and in consultation with the academic community, I don’t think you have much to fear about the impact of impact were something similar ever to be introduced in Denmark.

Mark Learmonth is Professor of Organisation Studies/Deputy Dean (Research) at Durham University Business School. He spent the first 17 years of his career in management posts within the British National Health Service. Prior to taking up his post in Durham he has worked at the universities of Nottingham and York. You can follow him on Twitter.

Pic: own

Sustainable Business Model Research –Time to Leave the Twilight Zone

By Dr. Florian Lüdeke-Freund.

Research on sustainable business models, or “business models for sustainability (BMfS)”, is still a niche topic in both the business model and sustainability communities. BMfS researchers often find themselves in a twilight zone, not knowing whom to address with or involve in their research. After one decade of BMfS research, it is time to develop a joint agenda to strengthen and shape this interdisciplinary field.

Leaving the Twilight Zone

Looking at seminal articles, we see that early work on BMfS deals with organisational and cultural preconditions of business models that contribute to corporate sustainability. Analysing business models is also seen as a means to overcome the technology bias of traditional eco-innovation approaches and move towards system level innovation, e.g. through product-service systems. Others see business models as tools to re-scale and re-localise monolithic industrial infrastructures, while again others investigate the links between business models and business success through corporate sustainability. Research on BMfS is often rooted in ecological sustainability, but some scholars see BMfS also as a means to address social issues.

These perspectives and topics clearly show that we need multiple disciplines, theories and methods to properly study BMfS. But reviewing the BMfS literature, which we have done in different projects and articles (Boons & Lüdeke-Freund, 2013; Schaltegger et al., 2016; Lüdeke-Freund et al., 2016), shows that we, as BMfS researchers, tend to talk to our “sustainability peers” only, in terms of how we frame and work on research problems and the journals we publish in. At the same time we are sitting somewhere in between. We are neither pure management scholars nor ecological economics veterans. We are in a twilight zone.

After one decade of BMfS research, it is time to step back and reflect on the topics we have studied, the theories we have used and developed, and the methods we have applied. We should ask ourselves, who – from outside our community – could help with the problems we are studying? Obviously, this is a multi- and interdisciplinary effort. Therefore, a joint, multi- and interdisciplinary research agenda and mutual exchange are required.

Towards a Joint Research Agenda

Our recent Organization & Environment special issue on BMfS covers a broad range of entrepreneurial, managerial and innovation issues. However, a lot remains to be done with regard to theory development and management support. Here, the original business model and the diverse sustainability communities could and should work together, develop projects and write articles that contribute to theory development and management support and are acceptable to their various audiences – including their respective journals.

The following exemplary research problems were identified in the editorial article of our special issue and could serve as a starting point for a joint research agenda for the original and the sustainability-oriented business model communities:

Theory development

How can theories on the organisational level (e.g. dynamic capabilities), individual level (e.g. responsible leadership) or on both levels (e.g. organizational learning) help explain green and social business model transformations?
How do BMfS co-evolve and trigger industry transformations both via market interaction and system transitions (e.g. evolutionary economics)?
Which learning-action networks and collaborations, but also power struggles between stakeholder groups, are involved in the creation of BMfS (e.g. stakeholder theory)?

Management support

Which management frameworks and instruments enable the management of and transition to BMfS (e.g. change management)?
Which frameworks and instruments can support innovation (e.g. design thinking, The Natural Step) and strategy implementation (e.g. Business Model Canvas) for BMfS?
How can performance and societal impacts be measured and managed on the business model level (e.g. balanced scorecard)?

These are just a few exemplary topics. But it is a starting point. It is also, or even much more, an open invitation to scholars from fields such as entrepreneurship, innovation, design, policy, and transition research, and many more, to develop a joint agenda that allows for true multi- and interdisciplinary BMfS research.

Our dynamically growing communities – e.g. Business Model Community, Sustainable Business Model Blog, Strongly Sustainable Business Model Group, Sustainability Transitions Research Network, Inno4SD – could benefit from such an agenda to progress in a more synergistic way, combining the best of these worlds: up-to-date knowledge about business model and sustainability research.

Such an agenda would shed some light on the twilight zone of BMfS research and would help to establish it as a research field in its own right.

Let’s start the conversation – now.

Florian Lüdeke-Freund is a senior research associate at the University of Hamburg, Germany. He is a research fellow at the Centre for Sustainability Management (CSM), Leuphana University, and the Governing Responsible Business Research Environment at Copenhagen Business School, Denmark. His research deals with sustainable entrepreneurship, sustainable business models, and innovation. Florian founded www.SustainableBusinessModel.org as an international research hub addressing sustainability, business model, and innovation topics.

Pic by Rod Serling’s classic anthology, The Twilight Zone (1959 – 1961)

Rising Inequality and Political Backlash

By Kate Grosser.

Widening income inequality has become the defining challenges of our time. Not only has this issue been highlighted in recent years by the IMF, the OECD, and the Economic Policy Institute, Washington, among others, but it is at the centre of much analyses of the causes of Trump’s US election victory, including Dirk Matten’s great blog on this site last week. The gap between the rich and poor is reportedly at its highest level in decades in advanced economies. While this trend has been more mixed in emerging markets and developing countries, pervasive inequities remain, and it is increasingly recognized that inequality impacts negatively upon growth, sustainability and political stability.

Contesting the Equality and Gendered Value of “Creating Shared Value” is an urgent task

So what does this tell us about our success in ‘Creating Shared Value’? It would seem we urgently need to pay a lot more attention to what we mean by ‘shared’ and, in particular, to how corporate practices impact upon inequality at all levels of society, across all stakeholder domains, and in the wider economy and polity. Notably the IMF confirms that gender inequality is strongly associated with income inequality and that this holds for countries across all levels of development. Thus we live in particularly challenging times for gender equality. How are we going to address these challenges more effectively?

Corporations have been shown to rely on gender and other forms of inequality as a resource, exploiting women’s low pay globally, and especially in supply chains in developing countries for example, and relying upon invisible and unpaid care work, done mostly by women, to sustain workers and organizations. However, it is also true that business has the power to make changes that can impact huge numbers of women, as well as men, in positive ways through new business models and new approaches to responsible business. Yet, corporate claims to be advancing equality MUST be investigated and evaluated by feminist scholars, and others working on different forms of inequality, in collaboration with the so called ‘beneficiaries’ of CSR, to assess progress in this regard.

Emerging research on CSR, gender, and other forms of inequality – what are we learning?

Among the growing research outputs on inequality issues and CSR, including those addressing gender, development, and indigenous studies, many have raised questions about the nature of shared value. They have also frequently suggested ways forward on this issue, including the need to listen to, and act upon, knowledge that comes from the ‘margins’ of our field, and of mainstream society. However, while such research in CSR is more critical than ever, the impact of this work, in terms of research and practice, will depend to a large extent on levels of interest among CSR scholars in addressing inequality in our midst. A quick review of feminist scholarship for example, reveals that this routinely develops alongside, rather than as part of, mainstream theory and research, such that it is effectively ignored, its implications overlooked and its insights missed (e.g. Shanley and Pateman, 1991). In our own field Janet Borgerson (2007) finds that feminist ethics has been consistently overlooked, misunderstood, and improperly applied within business ethics. In our new edited collection on Gender and Responsible Business: Expanding CSR Horizons (Editors: Kate Grosser, Lauren McCarthy and Maureen Kilgour, Greenleaf 2016), Laura Spence points to low citations of feminist research, even that by the leading professors in our field such as Ed Freeman. Craig Prichard (2013) proposes that ‘uncitation’ does not prove that a paper is of poor quality, but rather that it is separated from the ‘dominant co-citational coalitions’ of a particular group of powerful scholars and journals. He suggests we seek out uncited papers to find new areas of importance to our field. In sum, advancing CSR research on gender and other forms of inequality will require all of us to:

Support and mentor those who write from the margins of our field, including women academics from a variety of backgrounds and parts of the world
Explore, support and cite scholarship on inequality and CSR, including feminist research;
Contribute to investigation of how masculinity dominates CSR research, discourse, organization and practice; and how inequality and neo-colonialism shape our field.
Bring the issue of rising inequality centre stage in business and society research of ALL kind

New voices on inequality and CSR

Our new book forms part of the growing literature which aims to bring new voices and perspectives to CSR. Contributions come from people in business, NGOs, as well as academia. Many chapters bring to the foreground the intersection of gender inequality with race and class inequality in global value chains and production networks. One of the strengths of these contributions is that they not only reflect feminist critiques, but also feminist engagement with CSR, including examples as to how we can do more to interrogate and improve CSR impacts with respect to equality. For example, Sofie Tornhill’s chapter provides a rare glimpse into on the ground experiences of the women ‘beneficiaries’ of corporate women’s empowerment programs. She ‘asks what do corporations do when they “empower” women?’, and finds much to be desired in the lived experiences of the women ‘entrepreneurs’ in a South African township enrolled on Coca-Cola’s 5by20 initiative. The women in this research help us identify how we might better support gender and CSR program recipients in the future. Felicity Butler and Catherine Hoskyns report on a fair trade partnership between The Body Shop and a local sesame producer cooperative in Nicaragua that paid for care work done in the home to support the business, resulting in demonstrable benefits for women involved, and for gender equality, despite the wider institutional challenges. Elizabeth Prugl’s chapter explores how we might challenge the rise of neoliberal feminism via CSR, with its focus on individuals, and return our attention to the pressing questions of structural inequality. In line with a new focus on wellbeing inequality, as opposed to just economic inequality, other chapters extend the boundaries of CSR to interrogate Corporate Sexual Responsibility (relating to the use of strip clubs and pornography as part of business transactions, or on business travel), hegemonic masculinity, sexist culture in the gaming industry, reproductive technologies, and corporate philanthropy supporting work on violence against women. Issues of sexual harassment, such as that boasted about by Trump, perpetuate inequality and are key to a CSR agenda that extends to human rights.

Beyond the myth of “shared value”

To avoid wasting the crisis of Trump presidency as Dirk Matten suggests, we must move beyond our comfort zones and ‘business as usual’. Significantly more research is needed that specifically addresses the relationship between CSR and rising inequality in advanced economies, as well as globally. Focusing here has the potential to increase the relevance and usefulness of our field. In addition to challenging the role of private corporations in the governance of society, and the advance of privatization, we might focus more on: corporate taxation; investing much more in social infrastructure and the care economy, and fostering new forms of democracy in our own field, to name just a few. While, growing inequality is by no means the only cause of the current political backlash in the US and elsewhere, not for the first time in history, this comes with rising levels of explicit sexism, racism and xenophobia. If language is performative we are in danger of things getting worse for many people, and the myth of shared value, presented as a positive outcome for all, must be interrogated, contested and exposed more widely than Crane et al. (2014) suggest, because the data on inequality globally testify to the fact that the current system is not sharing value so much as it is extracting it. Moreover, this extraction is gendered (as well as racialised and classed) in important ways. The US election result reveals that we ignore this challenge at our peril.

Kate Grosser is a Senior Lecturer in the School of Management at RMIT University in Melbourne, and a Visiting Fellow in 2016 with the VELUX Chair in Corporate Sustainability, Copenhagen Business School. She researches gender and CSR, feminist organization theory, political CSR, feminist movements and CSR, culture and sustainability. She is on Twitter @KateGrosser and recently published a collection on Gender and Responsible Business: Expanding CSR Horizons (Editors: Kate Grosser, Lauren McCarthy and Maureen Kilgour, Greenleaf 2016).

pic by Greenleaf.

Trump, Anti-Intellectualism and the New Role for Business

By Erin Leitheiser.

For anyone who pays even vague attention to the news it is clear that this year’s U.S. election is not only continuous, but perhaps exemplifies the growing divide between truth (facts) and lies (fabrications). Politicians have a long track record of twisting and distorting facts to support their position, but Donald Trump has taken this to a new level. In just the past week he blatantly misrepresented academic findings about voter fraud, continued to promote a debunked rumor about $6 billion in missing funds from the State Department under Clinton, and has sworn to question the results of the election if he doesn’t win. Herein we see a dangerous disregard (at best) or rejection (at worst) of the truth.

Notions of Trust are Changing

Trump may indeed personify the growing divide between who and what information is trusted by the general public. Every year the PR firm Edelman publishes their annual Trust Barometer, a worldwide study which, among other things, tracks the credibility and influence of various categories of “spokespeople” (such as CEOs, NGO reps, and the like). Some of the related findings include:

There is no clear voice of authority. When asked who they would trust to provide news and information about business, about half would find a CEO credible (49%) but only about one-third (35%) would trust the government. NGOs are trusted about half the time (48%), and academics and technical experts fared a bit better with credibility rankings around two-thirds (64% and 67%, respectively). When asked about how much each institution could be trusted to address social issues, government scored even lower than business – 15% versus 26%.
Increasingly, respondents trust their peers as much or more than anyone else. Nearly two-thirds of respondents (63%) would trust information about a business given to them by “a person like yourself”. This is up from less than half just five years ago (43% in 2011). This trend is reinforced by rising rates of news consumption through social media.
Business is increasingly expected to take on a bigger role in promoting the public good. In 2015, 74% of respondents indicated that “a company can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates”. This number rose to 80% in 2016.

What do these trends mean for business?

With fact-fighting figures like Trump looming over the world of politics, it is not surprising that trust in government is low. What may be somewhat surprising, however, is the ever-growing expectation for business to take on a role in tackling societal issues.

Business thus far has risen to the occasion in a variety of ways, be it philanthropic donations to communities, like Target’s 5% give-back commitment; cause-brand alliances, like the NFL’s longstanding partnership to promote breast cancer awareness; partnerships with nonprofits to enhance the sustainability of business practices, like IKEA’s work with the WWF to better manage environmental resources; a self-regulatory role by adopting voluntary standards, like certifying timber products with the Forest Stewardship Council; or any other number of efforts. Indeed, we have entered a new era for business.

Edelman’s Trust Barometer results and several academic studies also point to instrumental benefits for business who engage in societal issues. Employees at companies engaged in societal issues report much higher levels of motivation, commitment and confidence in the company, and have lower turnover. When supply chains are closely managed, reputational and operational risks go down, like the ones we saw with the horrific 2013 garment factory collapse in Bangladesh. And, if that’s not enough, research has shown that socially responsible companies perform better financially in competitive markets than do irresponsible ones.

Takeaway

Trust is shifting and expectations of business are changing as the public’s confidence in governments and politics dwindles. The time is ripe for business to step up to the plate to take a swing at their new role. In addition to societal benefits, business can expect to see positive impacts to its performance, too.

Erin Leitheiser is a PhD Fellow in Corporate Social Responsibility and Sustainability at Copenhagen Business School. Her research interests revolve around the changing role and expectations of business in society. Prior to pursuing her PhD she worked as a CSR manager in a U.S. Fortune-50 company, as well as a public policy consultant with a focus on convening and facilitating of multi-stakeholder initiatives. She is supported by the Velux Foundation and is on Twitter.

pic by cbsnews

CSR in Asia – A Learner’s Reflections

By Jeremy Moon.

One of the most exciting features of my CSR adventures has been Asia. As a result of opportunities to travel, meet and engage with Asian academics and practitioners, I have been able to ponder, write and edit research on CSR in Asia for over a decade. However, I still think of myself as a learner. I don’t live in Asia and I don’t know any Asian languages – unless we count English!

Moreover, Asia is so large and diverse that acquaintance with one country may give little guidance to how things work in others. Scholars are relatively at ease in generalizing about national approaches in the USA and Europe (probably wrongly, but that’s another story!). In Asia this can be tricky as many countries have diverse business systems (see Witt and Redding eds. 2014). Nonetheless, Asian countries, no less than any other, do acquire national business systems and thus national studies, with appropriate cautions, are none the less valuable. My paper with Wendy Chapple on the subject (Chapple and Moon 2005) has proved a reference point for other interested scholars. Doubtless it has irritated others who would point, for example, to the diversity of business systems in, say, India, predicated on issues of culture, religion, politics, law and economic development.

We need to address the gap to non-normative theorization of CSR in Asia research

Undeterred I have pursued my appetite for CSR in Asia, most recently with Rebecca Chunghee Kim (Kim and Moon 2015). We investigated the place of CSR in Asian business and management research. Our finding was of a growth of the proportion of publications on Asian topics in the leading CSR journals, and of a growth in the proportion of publications on CSR topics in leading Asian business and management journals between 2000 and 2014. The papers we studied were overwhelmingly empirical rather than theoretical, and the empirics were increasingly of a quantitative rather than of a qualitative nature. It is to be hoped that this imbalance will be redressed particularly by greater attention to non-normative theorization of CSR in Asia research.

Whilst the growth of publications was manifest across all three geographical regions we distinguish (East Asia, South East Asia and South Asia), it was particularly strong in East Asia – largely explained by research on China. This is interesting as in our first analysis of company self-reporting of CSR in Asia conducted in 2002 – 2003 (Moon and Chapple 2005), China did not feature as we did not have a sufficient sample of Chinese companies self-reporting their CSR.

Regulation by norms dominates Asian CSR

CSR in the West has taken a new institutional turn with a shift from an emphasis to ethical norms and philanthropy to include a variety of new organizations (e.g. partnerships, multi-stakeholder initiatives) and regulations (e.g. soft rules of international standards and government reporting regulations). So Rebecca and I investigated what impact these had in CSR in Asia research? Interestingly about 40% of publications we studied had some sort of reference to institutionalization. Whilst this seems like a fairly predictable score, curiously, there was virtually no attention to the institutionalization of CSR in Asia through ‘organization’, and almost all the research focused on the institutionalization of CSR through ‘regulation’.

We investigated these papers further by distinguishing those that focused on regulation by ‘norms’, ‘soft rules’ and ‘mandate’, and whether these regulations were ‘situated’ (i.e. located in specific communities or places) or ‘universal’ (i.e. based on abstractions e.g. human rights; or international frameworks e.g. the United Nations Global Compact). Whilst there was some attention to ‘soft rules’ (e.g. the ISO 26000) and ‘mandate’ (e.g. the Indian CSR Act), the finding was of an overwhelming stress on ‘norms’. The orientation of these norms and other forms of regulation, was almost entirely ‘situated’ rather than universal.

Community as No.1 stakeholder demands ‘the right thing to do’

In this light, our analysis turned to the place of community in Asian CSR. Our review suggested that this is the No.1 stakeholder in Asian CSR, and this centrality is framed primarily in ethical terms. This ethical character is often expressed with reference to long-standing religious and other cultural conceptualisations of ‘the right thing to do’. It contrasts with the greater stress on the range of ‘primary’ company stakeholders in stakeholder approaches to CSR in the West, including employees, investors and consumers, as well as communities. Here there is greater emphasis on functional motivations for these relationships, notwithstanding Ed Freeman’s own stress on ethical and strategic reasons for managing for stakeholders (e.g. Freeman, Harrison and Wicks 2007).

The way forward

Among the questions that arise is the durability of these community orientations in the context of the increasing internationalization of business. Can Asian companies retain these grass-roots orientations as their value chains grow? Will there be a bi-furcation of CSR in Asia between its domestic relations, institutionalized by the ethics of community, and its international relations institutionalized by CSR organizations and regulation by soft law and mandate? Will CSR in Asia take on a more organizational form? How will Asian and Western forms of CSR interact in the future?

Jeremy Moon is Professor and Velux Professor in Corporate Sustainability at the Department of Intercultural Communication and Management at Copenhagen Business School. His primary research areas are corporate social responsibility, corporate sustainability, corporate citizenship, corporations and governance and business and politics.

Photo: allthefreestock

The Power of Findings

By Dan Kärreman.

One of the biggest irritations with contemporary organization and management studies is the way we are encouraged – indeed, forced – to chop, slice and mix our empirical findings in ways that support an abstract argument: the holy contribution.

Findings vs. contributions

It is rare to find someone, anyone, that tells a straight story. It is even rarer to find someone that speak out and support the telling of stories from the field in the name of finding out about social phenomenon.

Suffice to say, we can’t avoid abstractions all together. After all, our job is to speak to larger issues, as well as reporting our findings. However, at this moment in time, the larger issues are (mis)-interpreted in ways that clearly overwhelm the reporting of findings. Today we think of larger meaning as more abstract and specialized meaning, as almost devoid of broad meaning and consequence, and as a product for the consumption of a hyper-specialized tribe with its own language, set of beliefs, and rituals.

It is unusual to find a study that ponders the importance of the object under study on its own merits, in contrast to endless jockeying for positions in various hyper-specialized debates. The question hanging over the researcher in organization and management studies is rarely “what is going on here?” but rather “how can I make this to contribute to contemporary micro-debates and nano-controversies in institutional theory, critical management studies, identity theory, entrepreneurship, innovation studies, gender at work, leadership”, and so on, as if social reality neatly reflects today’s division of labor in academic work.

What is a finding?

Put bluntly, it is a fleck of empirical reality that challenges how we expect social reality to work. It is showing that a brand can be more important for organizational members than customers. It is showing subordinates managing their superiors. It is showing workers turning performance measurements to an exciting game. It is showing how cynicism reinforces rather than undermines distrusted systems. It is showing that choosing work before family in certain occupations is rational because here work provides massive material and emotional support while family life is a resource-deprived combat zone.

Showing, rather than telling, is the true advantage of a compelling finding.

In this sense, a finding compels because it is specific and concrete, rather than abstract and general. A finding speaks of larger issues not because it provides a hyper-specialized abstraction, but because it gives insight to the moment and meaning of actual social reality. It speaks to larger issues not because it reveals mechanisms and patterns, but because it shows the layered minutiae of interactions and dynamics in everyday settings. A finding speaks to larger issues not only because it can be used to fire academic controversies – although it certainly is able of doing that – but, more importantly, because it can put them to rest.

We need concepts that are attached to findings.

I think it is clear that we focus far too much on contributions, rather than findings, in organization and management studies. This is not to say that contributions, in the form of abstract concepts, vocabularies and theories, are bad or useless. On the contrary, we need them to do our job. We always should try to trade in poor concepts and theories for better ones.

However, for now we are preoccupied with creating concepts that cover less and less, and reveal almost nothing. We need to move out of this dead end. We need concepts that are attached to findings. We need methods and techniques that provide findings – findings that can give access to and insight in the strange world of business in society.

Dan Kärreman is Professor in Organization and Management Studies at the Department of Intercultural Communication and Management at Copenhagen Business School.

Pic by Pixabay

Universities as a Living Lab for Sustainability

By Jannick Friis Christensen and Kristjan Jespersen.

Thursday 25 August marked the beginning of Professor John Robinson’s adjunct professorship at CBS. To a packed full auditorium, he gave his inaugural lecture about universities as test-beds for regenerative sustainability with the clear advice for CBS: make sustainability a strategic priority.

The social contract between the university sector and society at large is shifting. It is no longer enough for universities simply to educate students and do research. That was one of the main messages that Professor John Robinson wanted to get across as he last Thursday gave his inaugural lecture as part of his adjunct professorship with the CBS Department of Intercultural Communication and Management.

A university or a business school such as CBS is increasingly expected to contribute directly to the big challenges faced by the society in which it exists and is financed. One such challenge is sustainability, and the world is – in the words of the professor – dying to engage with the university sector because it can do things that are hard to do elsewhere.

The reason for this is the shared set of characteristics of universities that make them uniquely qualified to play a living lab role in the sustainability transition, understood as encompassing both environmental and human wellbeing.

Besides educating and conducting research, universities are, by and large, single decision-makers with respect to a significant capital stock at an urban neighbourhood scale, consisting of multiple academic buildings, energy, water and waste systems, and student housing. Most importantly, universities have a public mandate and are, in a Danish context, public institutions, that can be more forgiving on paybacks, and long-sighted on returns.

No other societal institution has this mix of capabilities. Hence, the sustainability challenge is also an opportunity for universities to become test-beds for sustainability, treating their whole campus as a sand box to implement, test, research, and teach sustainability, and in that way to contribute directly to the significant changes required to reach a sustainable future.

CBS in particular has a unique opportunity due to the role of business in the sustainability transition. Professor Robinson, who shares the Nobel Peace Prize of 2007 for his work on the Intergovernmental panel on Climate Change with Al Gore, talked right into the Public-Private Platform as such partnerships are needed to increase human as well as environmental wellbeing.

Such an approach, however, calls for a reframing of the sustainability agenda from being less bad to doing more good. This is what the professor refers to as regenerative sustainability. Instead of placing limits and constraints by telling people to cut back and reduce consumption; a net zero focus, which turns out not to be a super motivating agenda, his focus is on being net positive.

Treating sustainability as a strategic academic and operations opportunity, which was Professor Robinson’s advice to CBS, will not only help to fulfil the terms of a new social contract of responsibility between universities and society, but is also likely to have real benefits to the university in terms of partnerships, funding, not to mention recruitment of students, faculty, and staff.

Click here to watch the lecture.

Jannick Friis Christensen is Research Assistant at the Dept. of Organization and Kristjan Jespersen is Doctoral Fellow at the Deptartment of Intercultural Communication and Management.

Pic by Lise Søstrøm

By Milena Bar, Ottilia Henningsson, & Dr. Kristjan Jespersen

Combatting climate change requires voluntary private sector engagement

2021 record year for new approved targets and committing firms for SBTi

Firm commitment to the Science Based Targets initiative aligns environmentally sound practices with financial viability

Stock price reaction in response to commitment to the Science Based Target initiative

Looking Ahead

About the Authors

By Alina Hofer, Lea Katharina Kasper & Dr. Kristjan Jespersen

About the Authors

By Jeremy Moon

About the Author

By Leonie Decrinis

Further readings

About the Author

By Marco Morazzoni and Dr. Kristjan Jespersen

‘Active versus passive’ debate

Insights to individual investors in ESG financial products

Regulatory considerations

About the Author

By Wendy Chapple & Jeremy Moon

About the Authors

By Lisa Bernt Elboth, Adrian Rudolf Doppler, & Dr. Kristjan Jespersen

Key Findings

Institutions are among the determinantal factors for the link

Possible explanations for such dynamics

Putting the SO WHAT into practice

References

About the Authors

By Bruna Carvalho and Lucia Reisch

Feedback loops in food production may increase future food insecurities

Mainstream food systems are designed to operate in positive feedback loops – and that’s not positive

The BEACON project explores pathways to shift to a sustainable food system

Developing a circular society

Further readings

About the authors

By Anna Sophie Hauge, Marie Haadem and Meike Janssen

Characteristics of Success

In the end

About the Authors

By Margherita Massazza & Dr. Kristjan Jespersen

To what extent are sustainability considerations included in investment decisions?

What drives investors to invest sustainably?

How can the findings help us better assess sustainable investing?

References

About the Authors

By Dr. Kristjan Jespersen, Dr. Izabela Delabre, Dr. Caleb Gallemore, and Dr. Katryn Pasaribu

Introducing No Trees, No Future – new research project

About the Authors

By Lavinia Cristina Iosif-Lazar, Jens Riemer and Caroline A. Pontoppidan

The EU Context: broadly speaking, all education needs to be green

The Danish Context: The Danish Ministry of Education and the Green Transition

The CBS Context: Green Themes in study programmes

How do Green Themes look like in a study programme at CBS?

The continuous loop: research, policy, strategy and the classroom

References

About the Authors

By Clément Brébion and Janine Leschke

A proposed model for designing algorithms

“Working with not on the unemployed”

Further readings

About the Authors

By Elizabeth Cooper

Some Examples of System 1 Nudges in Tourism

Some Examples of System 2 Nudges in Tourism

Further reading

About the Author

By Fumiko Kano Glückstad

About the Author:

By Tali Padan

About the Author

By Jan Michael Bauer

About the Author

Book Review of Saving Endangered Species: Lessons in Wildlife Conservation from Indianapolis Prize Winners

By Lisa Ann Richey

Further Reading

About the Author

By Rikke Rønholt Albertsen

1) Sustainability impact is non-linear, systemic, and complex.

2) Researchers do not have the necessary information.

Is this a problem?

What is SF₆ and why is it a hurdle for a green energy transition?

Measuring Impact of SF₆ Leaks by Offshore Wind Players