Reflecting on 2018: complexity, messiness, progress

December is an excellent time to reflect on the year, and 2018 requires more reflection than most. Wherever one looks, 2018 was messy, from politics (consider, for very different reasons, Brexit endgame, “gilets jaunes”, or Korean denuclearization) to how we deal with major issues: picture 30’000 COP24 delegates in Katowice, surrounded by coal mines and coal dust, struggling to put in practice the good intentions of the 2015 Paris Agreement.

2018 was a year of extraordinary progress of knowledgeTo illustrate:

In February, Steven Pinker set the tone with his well-researched book “Enlightenment Now: The Case for Reason, Science, Humanism, and Progress”, demonstrating the spectacular improvement of human wellbeing on 15 dimensions, including health, safety, and happiness, using data to dispel common myths.

This was followed by one of the most important scientific publications ever, the IPCC 1.5°C report. For the first time, we know exactly what to do to limit warming to avoid the worst consequences (simplified: reduce CO2 emissions by 58% by 2030, replant forests).

 

Report October 2018

Source: IPCC 1.5°C Report, October 2018

Scientists from the University of Leeds scaled these limits to a per capita level in their paper “A good life for all within planetary boundaries” (Phosphorus 890 g, Nitrogen 8.9 kg, material footprint 7.2 t). They introduced a new indicator eHANPP (embodied human appropriation of net primary production), representing biomass harvested or killed for human use, with a suggested limit of 2.62 t per person per year.

Why don’t we act as needed? Knowing exactly what to do is only a first step, but it’s not very useful if we don’t act. So, we need to ask, why are most of what we do “business as usual”? Why do we keep collectively creating outcomes most of us don’t want, like environmental destruction, broken communities, lack of trust, financial crises, millions of refugees, malnutrition, or obesity? This includes individual, company and government action, often pulling in the same (wrong) direction.

Part of the answer lies in the way our socio-economic system has evolved, with its stocks, flows, buffers, positive and negative feedback loops, rules, parameters etc. A simplified example: debt payments require growth, which requires cheap energy, meaning burning fossil fuels, leading to pollution and many other problems.

A bigger part, however, is probably linked to the way we think about the economy: as an independent system, following its own mechanistic rules (remember supply and demand curves from Econ101), separate from the environment and partly detached from society. At its core is money, as a benchmark, behavior driver, store of value, in addition to being a means of exchange.

Without this cultural baggage, an independent observer would see a still beautiful planet with a threatened biosphere; closed material flows but open energy flows powered by the sun; a dominant, individually smart but collectively stupid species obsessed with power and money; a highly complex human society and civilization as a subset of the biosphere; an economy as a subset of society and sub-subset of the biosphere, completely dependent on ecosystem services it is busy undermining.

Outlook: Looking back as far as our data will allow, with Steven Pinker’s help, suggests hope. The progress of knowledge in 2018 reinforces this hope, in spite of the rising complexity of today’s issues. The next blog will examine how we as educators can contribute.

Sascha_NICKAuthor: Sascha Nick, BSL Professor

Five steps to make Company Value Statements work

A friend of mine said recently to me:

“I never understood why companies publish value statements. I cannot imagine that this has any effect.”

If I look at many corporate values statements I have to admit that he is right: empty word bubbles on glossy paper, that present an organization that does not exist in reality. Cliché values like teamwork and integrity are overused and are not get specified what they really mean for that given company. In consequence values statements like this cannot create any emotional appeal. And finally, very often nothing happens in the company after the value statement is published. It stays a dead piece of paper with no link to real-life behavior.

What a pity! What a waste of time and energy! I think this situation can be explained by the fact that companies tend to underestimate the complexity of managing values in a credible way and overestimate the power of publishing policies and written statements.

There are tons of studies that show that companies with a strong values-based culture are more successful because connecting your people to a purpose that goes beyond the profit motive is extremely powerful and motivating. Humans want to be part of something that is bigger than themselves, where they can have impact, appreciation and pursue common positive goals. Values can be like wings that lift us to do amazing things together.

So what do you need to do to avoid the 4 apocalyptic riders of bad value statements?

The 4 apocalyptic  riders of value statements:

  • Too general
  • Not authentic
  • No emotional appeal
  • No link to behavior

1. Make values specific to your company

The first step towards a values statement that works is putting extra effort into the choice and wording of values in order to develop values that are specific for the respective company.

Instead of simply picking the usual suspects of over-used values like the above (excellence, integrity, and communication) or the equally commonplace client orientation, teamwork or trust, you need to find out what really defines the culture of your organization. Choosing client orientation, teamwork and trust is the lazy way out. Nobody can be against them. All companies need client orientation, teamwork, and trust because without them they would soon be out of business.

You need to do some more heavy thinking and find out how exactly e.g. do you serve your customers. How do you do it differently than your competition? What is unique about a clients’ experience with you?

A good example of specific values comes from Ikea. Their values are: Humbleness and willpower, leadership by example, daring to be different, togetherness and enthusiasm, cost consciousness, constant desire for renewal and accept and delegate responsibility. They have defined values that really fit their culture and could not be used by almost any other company.

2. Only authentic values are credible

The second step towards good value statements is ensuring that they are authentic. This is best achieved by developing them in a combination of a top-down and bottom-up approach. This helps to avoid the common pitfall of coming up with a list of unauthentic and unrealistic values that reflect the wishful thinking of top- management. In fact, it is often hard for the people at the top to know what the culture and climate of the rest of the company look like. In general things tend to look rosier from the top.

Does that mean you should start with a couple of employee focus groups to come up with your new company values? That depends on your situation and your corporate culture. The danger of starting with a bottom-up development is the fact that you create expectations with coworkers that might get disappointed by the top management.

When I work with clients on value statements I usually like to start with a first input from the top management that is then specified and modified by a series of bottom-up workshops. In these workshops, we discuss questions like:

“What do this values really mean to us?”

“Could we do without this value?”

“What are positive stories about this value?”

“What do we still need to do to realize this value?”

With the material from these workshops, it is much easier to come up with a first draft for a value statement that is both authentic and specific. In addition, you gain employee buy-in from the very beginning.

3. Aim for the hearts

The third step toward good and credible value statements is making them emotionally appealing. The Bavarian Bank Sparda is a thought-provoking example of how to do this in a courageous and unusual way. Unlike most companies, they did not initiate their values management process with a top-down process but with a focus on the individual coworker. The banks visionary and charismatic CEO, Helmut Lind, Sparda wanted to change the bank by shifting everybody’s attention to the strengths of every coworker.

On a voluntary basis, coworkers filled out an online questionnaire and participated in workshops that helped them identify their natural talents. This created an enormous emotional traction, credibility, and trust because suddenly the men and women in the bank felt seen in their own special characteristical strengths. A deep desire that every human has. It also became much easier to appreciate diversity, because the value of difference was made transparent in the workshops.

I am deeply impressed by this approach that really starts with the people in the company. On the basis of this appreciative process that emphasized the different strength of coworkers the next step was to look for agreement and unity: What should be the values that we all could agree to for our company?

Helmut Lind had the courage to give up his leadership control and put his trust into the collective intelligence of his people by giving them all a say in the development of the banks value statement. The fact that an amazing number of 74% of all coworkers volunteered to participate in the process, shows the high level of engagement the strength-focus process had created.

The values that were the result of this process were robust, credible and emotionally appealing. They were strong enough to enable the bank to decide not to invest in e.g. in risky speculations into currencies or food because it contradicted their value of justice and sustainability. A contested strategy before the financial crises of 2008, a wise decision afterward. And while the banking sector, in general, did not do very well after 2008, Sparda Bank continued to be successful.

4. Link values to behavior

The fourth step towards a successful value statement is making a systematical and constant link to behavior and the management’s relentlessly communication about the values.  We find a positive example of the constant implementation and communication of company values at the hotel chain Ritz-Carlton.
Their 12 service values all start with “I” which expresses personal responsibility and they are all very action oriented and specific for the hospitality business:

Service Values: I Am Proud To Be Ritz-Carlton

  1. I build strong relationships and create Ritz-Carlton guests for life.
  2. I am always responsive to the expressed and unexpressed wishes and needs of our guests.
  3. I am empowered to create unique, memorable and personal experiences for our guests.
  4. I understand my role in achieving the Key Success Factors, embracing Community Footprints and creating The Ritz-Carlton Mystique.
  5. I continuously seek opportunities to innovate and improve The Ritz-Carlton experience.
  6. I own and immediately resolve guest problems.
  7. I create a work environment of teamwork and lateral service so that the needs of our guests and each other are met.
  8. I have the opportunity to continuously learn and grow.
  9. I am involved in the planning of the work that affects me.
  10. I am proud of my professional appearance, language and behavior.
  11. I protect the privacy and security of our guests, my fellow employees and the company’s confidential information and assets.
  12. I am responsible for uncompromising levels of cleanliness and creating a safe and accident-free environment.

Source: http://www.ritzcarlton.com/en/about/gold-standards

But their implementation and communication effort does not stop here: already when recruiting new employees the values fit is tested. Once hired every new employee gets trained on these values for two days and has to present them by heart in front of their colleagues. In order to integrate the service values in the day-to-day work every morning in every Ritz-Carlton Hotel around the world, a 15-minute work meeting takes place: the round-up. During this meeting the priorities of the day get communicated, the service values get discussed and positive “wow” stories of exceptional examples of customer service are shared. This is the Ritz-Carlton way of using the emotional power of storytelling.

They also go one important step further: They empower their employees to deliver great service by granting every employee a discretionary spending of $2,000 (per incident) to satisfy a customer.

Sounds a bit extreme? Maybe… But Ritz-Carlton seems to be very successful with this highly structured approach for creating a values-oriented corporate culture: Employee turnover is at a very low – 18% versus the industry average of 158%.

5. Leaders must relentlessly communicate and implement values

The fifth and final step towards an effective value statement is making everybody – and especially leaders – accountable for the consistent implementation and communication of values.  The main responsibility for making a values statement fly, lies with managers, of course.

An inspiring example comes again from the CEO of Sparda Bank, Helmut Lind (yes, I admit it, I am a fan….). Since one of the company values is mindfulness, he is giving mindfulness seminars to his coworkers on 24 days every year! A great example of how you can continuously show your coworkers that you are serious about your company values.

Unfortunately, often the leadership of a company comes up with some fancy words and then expect that somehow magically their coworkers will adopt these values and use them as a guideline for their behavior, while top managers hide in the shadow. This is a very efficient way to quickly lose coworkers buy-in into the company values.

Somehow leaders seem to forget too easily that they are under constant observation by their coworkers. If their coworkers do not see that their managers fully embrace the companies values, role-model them continuously, talk about them frequently and convincingly, everybody will forget about the values and follow the cues that the leaders’ actual behavior shows them.

As always also in value management actions speak louder than words. You cannot expect that your coworkers will embrace the value of reliability if you are e.g. notoriously late for meetings.

Furthermore, leaders need to step in if their coworkers disregard company values.  If one of your company values is “Appreciation” and you have a manager who constantly mistreats his coworkers you have to take action, even if this abusive manager happens to be economically successful or a friend of your boss. But holding others accountable for company values and role-modeling them should not only be done by managers but by everyone in the organization.

Summary

In conclusion, even though value statements at the first glance seem to belong in the soft, fluffy and everybody-knows-how-do-it category of management tools, they require in fact rigorous thinking, honest soul-searching, and consistent implementation and communication.

Everybody can come up with a list of nice sounding company values. But if a value statement is not specific to the companies culture, business model and strategy the value statement will not create positive effects like orientation and motivation for employees.

If value statements are not authentic, they will not be credible and create more harm than good. At best, they will be quickly forgotten.

If company values are not emotionally appealing they will not win peoples’ hearts – which actually is the core aim of a value statement.

If company values are not constantly communicated and linked to behavior, nobody will take them seriously.

If managers are not shining examples of living and enforcing the company values, nobody else will do so.

So, yes, you should absolutely have company values and if done correctly your company will profit enormously from such a process, but you have to know that you will open a Pandora’s box if you do not do it with care, conviction, and authenticity.

Related links:

https://culture-officer.fr/5332

https://www.userlike.com/de/blog/unternehmenswerte

https://rctom.hbs.org/submission/the-ritz-carlton-ladies-and-gentlemen-serving-ladies-and-gentlemen/

https://enorm-magazin.de/ein-banker-geht-aufs-ganze

https://www.ecogood.org/de/gemeinwohl-bilanz/unternehmen/portrats-sparda-bank-muenchen-eg/

Prof.-Bettina-PalazzoAuthor: Dr. Bettina Palazzo, BSL Professor

Four Reasons why Corporate Value Statements don’t work

« Excellence », « integrity » and « communication » These seem to be the most popular buzzwords in corporate value statements.

I roll my eyes as soon as I see these values anywhere. Why? I will give you four reasons why they make me nervous:

1. One size does not fit all

First of all, values like excellence, integrity, and communication are way too generic. They could be adopted by any organization. Who would be against excellence, integrity, and communication? But are they really specific for the company and its culture or business model? Probably not! Excellence can mean many things to different people. It certainly makes a difference what we mean by excellence whether you are working in a bank or a hospital.
Integrity? It means that you always stick to your moral principles no matter what the benefit might be if you break the rules. This value, too, needs a lot of definition and soul searching before a group of people like a company can agree what it really means to them: When is a gift a bribe? How do we deal with confidential information?  Can I be friends with a supplier? Etc.

Pic Blog Corporate Values prt1 Yes, way too often value statement are empty word bubbles! Please avoid that. Photo by rawpixel on Unsplash 

 

2. The true colors are always shining through

Second, often companies succumb to the temptation to choose values that sound appealing but are too far away from their corporate reality and somehow hoping that the simple act of proclaiming that value it will become a reality in the organization. For example, when companies put “communication” in their value chart they wish to express with this value, which is not even a value but an activity, that they want everyone in the organization to cooperate effectively and openly with as little political power play as possible. Wishful thinking in many cases!  Of course, the people in the company know this and react with cynicism.

You cannot declare that your company cherishes collaboration, open communication, and teamwork when in reality your corporate culture is driven by fierce internal competition, politics and monetary incentives only. What we need is an inside-out approach. You have to do your internal cultural homework before you go into the world and brag about what a wonderful company you think you are.

Values statement will never work, if they are only the icing on the cake, they have to be the very foundation of a corporate culture. Within the icing-on-the-cake approach, the top management comes together and agrees on some fancy sounding words that are then communicated to the lower ranks. This does not work. It is like putting on makeup without washing your face. Or like learning some moves and gestures to appear more self-assured without doing the hard internal work of personal development.

France Telecom had to learn this the hard way in 2008, when they got hit by a series of over 30 employee suicides: victims stabbed themselves in the middle of company meetings, jumped out of the window at work and left goodbye letters that clearly stated that they killed themselves because of the pressures and fears at work. At that time France Telecom was in a difficult transition from a state-owned company to a player in the highly competitive and dynamic international telcom market and could not fire employees with a public servant status. Therefore, CEO Didier Lombard had introduced a merciless shake-out project that aimed at demoralizing employees in order to make them leave the company “voluntarily”.  As a reaction to the suicide series, Lombard said that this “fashion” of suicide should stop and that the media coverage created an effect of contagion. The waves of public outrage went high, Lombard had to leave and is still today on trial for harassment. Of course, at the same time, France Telecom had a value statement that said that the well-being of their employees was very important to them.

It is clear that after a disaster like that it will be very, very hard to ever make coworkers believe in the beautiful words of a value statement again. This is one point that is often ignored when companies initiate a value management project: If you screw it up, credibility is lost for a very long time, if not forever. At the same time, it is true that values can and should be aspirational. You can use values as part of a change program. But if you do that you have to make clear that you know that you are not quite there yet and prove that you have measures like training, organizational redesign or new performance standards in place to get there.

3. No Emotional appeal

Third, if values are too generic and unrealistic they do not create any genuine emotional response or connection for the men and women in a company who know the true colors of their organization all too well.  Of course, client orientation is important, but this is not a value that would deeply resonate with the hearts of employees. This is nothing that makes people get out of bed in the morning and go to work with joy and anticipation.

How can you make corporate values emotionally appealing? Not easy, but it helps to always start with a motivating overall purpose of the company that goes beyond the profit motive. Humans always yearn for meaning in their life. As philosopher and Holocaust survivor Viktor Fraenkel famously put it: “Life is never made unbearable by circumstances, but only by lack of meaning and purpose.”

This human desire for meaning is nicely illustrated by Harish Manwani’s (COO of Unilever) TED talk in which he tells the story of his first day at the company where his boss asked him why he was there. Manwani answered: “To sell lots of soap!” and his boss said: “No, to change peoples lives!”, because the original purpose of Unilever was to improve hygiene in order to help prevent contagious diseases. Clearly changing peoples lives is more emotionally appealing than selling lots of soap, right?

4. No link to everyday behavior

Forth, very often values statements are not linked to behavior. They get developed, glossy brochures rolled out, employees (maybe) read them, laugh bitterly because they are so unrealistic and cheesy and then they forget them because nothing happens that would link these values with the behavior of managers and employees. The mere proclamation of value buzz words will never, never, never influence people’s behavior. How people in an organization actually behave is the ultimate proof to the value pudding. Without this link to behavior, a value statement loses all credibility and disappoints all expectations that unavoidably come up when a company opens the value Pandora’s box.

And by the way, these three values, excellence, integrity, and communication were the corporate values of Enron. And we all know how this ended: In jail, bankruptcy, and shattered hopes. Somehow Enron had managed to win prizes for their value statement, but it definitely did not keep their top management from cooking the books and inciting their employees to cut-throat business behavior with the help of an inhumane incentive system.

In a nutshell, ever so often value statements do not go beyond orgies of humanistic prose in shiny brochures that nobody can take seriously. In extreme cases, they are a more or less random collection of buzzwords sound like this hilarious song by Weird Al: https://www.youtube.com/watch?v=GyV_UG60dD4

On the other side, of course, values are important for companies in our highly volatile, complex and ambiguous times. Old-school management that works with order and command is too rigid for this new fast-moving world. The younger generation of corporate coworkers is looking for more freedom, more fun, more autonomy and more purpose in their jobs. Here a corporate culture that is driven by values and a purpose that goes beyond simple profit maximization creates a positive appeal for future coworkers, higher levels of motivation with current coworkers and a more inspiring and more flexible way of decision making. Ideally, instead of applying rigid rulebooks, controls and processes, coworkers decide on the basis of common values.

So how can you come up with a value statement that will actually have these positive effects instead of creating cynicism and ridicule?

Stay tuned for my next blog post and on the five steps to make the value statements work.

Prof.-Bettina-PalazzoAuthor: Dr. Bettina Palazzo, BSL Professor

Responsible sourcing at Nestlé – BSL students learn first-hand about key elements of corporate sustainability

As all of us working in this field know, sustainability is highly complex, requiring an understanding of multiple disciplines, many of which rather technical. Additionally, there’s a big gap between theory and practice, especially when attempting to transform existing companies and systems that were not built with sustainability in mind.

In our case, after 5 classes of “Business Responsibility & Sustainability”, covering principles, natural and planetary boundaries, human dimensions, major programs like SDGs and MDGs, the role of businesses, stakeholder models and management, including role plays on how companies create conflict and how to resolve them – it was time to see how it all works in practice.

Early January, we were fortunate to be received by Dionys Forster (Sourcing specialist, department of corporate agriculture) and Diarmuid O’Connor (Global manager, agricultural raw materials) at the Nestlé HQ in Vevey.

Given the size and complexity of Nestlé (over 300k employees, 190 countries, thousand of brands and many more products), we had to focus, in the case of our visit on rural development and responsible sourcing of agricultural products, especially milk, cocoa, coffee. This of course means that many other topics with high sustainability relevance, such as processed food, added sugars, bottled water, palm oil, pesticides and many others, were not discussed during this visit.

What we saw and discussed was highly sophisticated, well designed and effectively implemented. Here are a few highlights:

  • Planetary boundaries and Terrestrial biodiversity were used to introduce the subject, similarly to how we started our own class two months ago.
  • Nestlé, with 1.7% world market share, is the biggest player in a highly distributed market, top 20 companies collectively accounting for only 9%. This means, to make a big difference, working with competitors is required.
  • Social media analysis reveals that people are concerned about food quality, climate change, packaging, animal welfare.
  • To make sourcing more responsible, Nestlé implemented Farmer Connect, directly sourcing from 760’000 farmers, ensuring almost total product traceability, offering training (400’000 farmers trained) and limiting price volatility (a major benefit for farmers, allowing them to better plan ahead).
  • A broad sustainable agriculture initiative (SAIN) aims to reduce waste and pollution, better use water, reduce greenhouse gases through technology dissemination, financial support for farmers, buying clubs, price stability, education, training, and advocacy.
  • RISE (Response-Inducing Sustainability Evaluation) is a questionnaire-based tool developed at the Bern University of Applied Sciences, rapidly identifying problem areas, allowing to better focus improvement efforts.
  • “Dairy for you” is an education program offering differentiated training for workers, specialists, managers, and graduates, by setting up a local institute or working with a local university.
  • At Nestlé Nutrition, baby food requires much lower limits of pesticide, lead, cadmium, mercury etc. residues – Nestlé applies the same (strictest) standards around the world, even in countries where not legally required.
  • In Ghana, to reach the majority of farmers who don’t read or write, a local theater play with characters representing good farmer / bad farmer is used to develop local community knowledge – and at the same time improve raw material quality and safety
  • A key issue in agriculture is succession – worldwide, the average farmer age is 60, in the US 65, in Japan 77; and specifically making farming attractive for the young generation. Nestlé has been working with many farmers for 2 or 3 generations, but the issue remains.

This reminds me of an excellent article published in the NYTimes “Don’t Let Your Children Grow Up to Be Farmers”, showing how the design of our food system, among many other issues, also makes farming unattractive for young generations.

Therefore we thank again Dionys Forster and Diarmuid O’Connor, not only for receiving us so well, but for doing so much to make sourcing more responsible.

Author: Sascha Nick, Associate Professor at BSL

Hacking for chocolate

“Chocothon” hits sweet spot of collaborative innovation in Ghana

Key question….what went on in Ghana last weekend that might have something to do with BSL’s vision and mission, and especially its three pillars of entrepreneurship, sustainability and responsible leadership in a context of collaborative learning?

The first Chocothon, that’s what! BSL has partnered with Google, the International Trade Center, the Future Food Institute, Crowdfooding and a host of other cool organizations to promote a “techno” focus on the sustainability and business threats around world cocoa supply. How? By holding a hackathon for chocolate (hence the term “Chocothon”). For those not yet in the know, a hackathon is an event, typically lasting a few days, in which groups of people meet to engage in collaborative computer programming. The idea of “hacking for chocolate” was born some two years ago at the Google Food Innovation Lab (where BSL partner and thought leader Dr. Aileen Ionescu-Somers is an expert participant). The first Chocothon in a series became reality in Accra, Ghana this weekend!

img_9925Threats…around chocolate? What? When you look at supermarket shop shelves today, it is hard to believe there is a problem. After all, we seem to have a plentiful supply of cheap, delicious chocolate treats. But don’t be fooled; our business system is overly short-term oriented. The economics barely work for now and benefit too few stakeholders. Long-term, if the crucial farmer producer of cocoa is not protected, then it’s a zero sum game. In other words, no supply = no business (so bad news for companies) = very expensive Easters, Christmases, Valentine’s days and Birthdays in the future (so terrible news for consumers).

Let’s focus on the challenges. Undercompensating farmers for quality cocoa ultimately leads to too low an income for farmers to bother staying in the business. It creates a rather vicious cycle: no money = low or no investment in new technologies, new trees or desperately needed training = increasingly lower yields and environmental degradation = lower quality cocoa = even less compensation. Then there are government policy threats, such as lack of knowledge and certainty about land rights and ownership leading to insecurity in land tenure. Macroeconomic issues such as inflation and defective exchange rate regimes also take their toll. So farmers in Ghana and Côte d’Ivoire and other cocoa producing countries are not only exiting cocoa farming and/or switching to other less challenging crops, but they do not want their children to stay in cocoa farming either.  Farming cocoa is a grueling task. If the economics do not work, it is even harder to make a business case to the increasingly literate children of farmers who, after all, may have other options.

So what does the Chocothon set out to do? Well, can the best of modern day high tech ingenuity contribute to resolving the problems around cocoa production? Can this be done in a context where illiteracy is widespread and access to Smartphones extremely limited? We agree…its a pretty tough call. But the technology landscape is changing rapidly. The Chocothon team figured that if we could get young Ghanaians excited about problems in their own country, through collaboration they could be empowered to focus their ingenuity on thinking forward and fixing them. After all, the problems we mention are man-made, so let’s get some man (and woman)-made solutions!

Need more convincing?  Well, if you get enough stakeholders together in one room with some hackers to work on a problem, you can literally start… hacking away at it.  So, for example, at the Chocothon, we invited government representatives to not only contribute their knowledge as “knowledge brokers” but to also raise awareness with them of the importance of increasing internet and Smart phone technology access, or of increasing institutional knowledge about land sizes, ownership and security. After all, knowing what you didn’t know makes for better decision-making. Looking forward, we can expect that young farmers in Ghana will be – as all young people are – ingenuous about assuring their own access to technology; every single trend in the world indicates that this is the case.

Therefore, the idea of designing collaborative platforms to share farming equipment or expertise to increase quality of work and efficiency and thus productivity, is not a pipe dream.  To set up systems empowering farmers to demand and get the best prices on the market is not a hallucination either. To enable mobile direct payments to farmers – faster cashless money transactions – coupled with now fast developing services like mobile insurance or other business transactions for tools or fertilizers are totally feasible future options for Africa, as they have been for other countries. Micro-financing of farmer investments, even by crowd-sourcing funds from all the chocolate lovers out there might be another possibility. Creating training platforms, or indeed tools that help young farmers with assessing soil fertility, tree age, crop diseases…all this is possible today. We can also look at optimizing transportation platforms to allow for better transport of cocoa beans – a big headache for Ghanaian farmers today. Get it? Good!

So from Saturday to Sunday 20-21 January, 2017 a group of young and talented hackers – IT developers and social innovators – got together with other stakeholders at the Impact Hub n Accra, Ghana. Representatives and knowledge brokers joined from multiple organizations such as the Ghanaian government, Google, Barry Callebaut (Swiss B2B cocoa supplier), the International Trade Center and the Future Food Institute. The Chocathon team assigned the hackers to working groups and provided food, drinks, and even mattresses (yes!) for the all night hack.

img_9852-2The teams had a task of building up a prototype and uploading deliverables step by step during the hackathon. Sounds familiar? It is pretty much the techie version of what the students of BSL did by designing start-ups to tackle social issues during the last Gap-Frame week last December… Yes, this kind of collaborative learning is taking hold in more sectors than one! The Ghanaian Chocothon hackers get tempting prizes to encourage innovation and even conversion of their prototypes into working businesses, such as a co-working space for one year at the Impact Hub or for six months at ISpace, or indeed a cash prize.

Watch this space for the next blog about the Chocothon where we will tell you about some of the cool ideas the hackers came up with. This is the first of a series of Chocothons that will ultimately contribute to saving YOUR treasured chocolate from gradual extinction. Tune in to #chocothon hashtag to find out more. Even better…how about supporting our next Chocothon? Here is our crowd-funding site link:  https://www.crowdfooding.co.uk/deal/188/Chocothon

Why should you get involved? Because YOUR chocolate needs YOU!

Ionescu-AileenPICTURE-150x150Author: Dr. Aileen Ionescu-Somers

Active in thought leadership, consulting, applied research, teaching and supervising DBA candidates in sustainability & responsibility.

African Handmade Shoes

African Handmade Shoes” is a start-up created by one young guy, Paul Burggraf, from Lugano in 2013.The company fairly employs thirty shoemakers from Cape Town, South Africa, to produce shoes (espadrilles) sold worldwide. It is an innovative project as well as a supportive business idea that creates a bridge between South Africa and Ticino, Switzerland.

The idea is very simple: producing handmade shoes in Africa and sell them online in Switzerland and worldwide. In addition, the project is characterized by an ethical attitude that provides fair wages and optimal operating conditions for the thirty artisans working in the Cape Town laboratory, differentiating it from other shoe manufacturers who exploit their workers through poor working conditions and with low wages. Nevertheless, “African Handmade Shoes” are fully aware of these problems and they are ready to make the difference.

In 2007, Paul Burggraf made his first of many trips to South Africa. Since then, he has fallen in love with South Africa – a colourful country, incredible, so full of potential.
The idea of “African Made Shoes” was born through meeting Arnold – a young South African craftsman who ran a small shoe shop. Paul was immediately interested and impressed by his work and his products. He realized there was serious potential for fashion export. Thus “African Handmade Shoes” was born.

student-blog

They started with a Facebook page collecting orders and received good feedback. They subsequently figured out the brilliance of their idea. They now have a thirty-man strong workshop in Cape Town, a website through which the product reaches around the world and a logistics base in Ticino: https://africanhandmadeshoes.com/.

The main sales channel is e-commerce, however, it is also possible to find temporary stores during festivals and events such as the “Locarno Film Festival” and so on. Currently there are a few stores in Ticino and Switzerland, it is even in the most prestigious Bahnhofstrasse in Zurich.

Transparency and fairness are very important; in spite of the few resources available,
social media has been key to make them known. Through these channels they have decided to completely document what was going on in the workshop of Cape Town. In short, the complete manufacturing process is documented for final consumers to see.
Pride in their craftsmanship, dignity and self-worth in their employees, respect for workers, earn a living wage, multicultural and happiness are values important for the brand. Workers are simply local people, they are friends and they are also neighbors.
Trusting workers is important to get maximum quality for the final product.
They have also helped to maintain a trade, that of the shoemaker, which globally is disappearing. Those who learn this profession with them can support themselves in the future. In the African social reality, in which education and apprenticeship training are lacking, giving people a future by learning a job is a huge added value.

Finally, they believe in African culture as well as the promotion and growth of the African economy. Therefore, the company is conducting a competition for local entrepreneurs called “Startaboom”: Three projects of local entrepreneurs are presented on the website of “African Handmade Shoes”. The public chooses what business will get financial support by voting on the website. The entrepreneur who receive the most votes will get the 10% of 2015 profit of “African Handmade Shoes” in order to help the project grow.

The success of “African handmade Shoes” is very simple: The colours and fabrics of these shoes make a product with a long cultural history, tradition known globally. Companies like these show us that business does not have to about profits only, but can be economically successful by helping to solve social problems and making people in Switzerland and South Africa proud of what they do.

Here a few links for more information:

Video presentation
Founder speech about local entrepreneurs (new start-up)
One of the three local entrepreneurs

Author: Riccardo Bonfitto, Master in International Business student, 2016

“Don’t Learn to Do, But Learn in Doing”

I was recently asked to speak at the Impact Hub Zurich’s event on the future of education: trends and opportunities. I am no educationalist but I am educator, so I decided to speak on what I was comfortable with, my own experience in teaching that I have worked out through trial and error over the last 10 years. I cut my teeth teaching in Singapore to Executive Masters students who would come in the evening for 3 hours of lecturing after a full day at work. They were understandably tired and so I peppered my lectures with as many case study examples as I could in order to demonstrate the real-life applications of corporate social responsibility and sustainable development, especially in a place and time when CSR and SD were still very much theoretical ideas and not a day to day reality.

And so to my current class of Masters students at BSL, I continue to try and make my lectures as relevant to real life as I can, knowing that business students need all the practical tools they can to be competitive when they head into the workplace.

This term I decided to use the theme of food and agriculture to discuss as many facets as possible of sustainability and business responsibility, and there is no shortage of material in this sector – from farming practices, (labour, pesticide use, GMOs, animal welfare), to processing (use of palm oil, high fructose corn syrup), transport (carbon footprint), marketing (obesity, fast food, veganism), to food distribution and scarcity.

To learn by doing, I asked my students to interview someone who had something, anything to do with the food sector and get their take on sustainability issues. It could be a restaurateur, it could be their uncle who likes cooking, a farmer, a winemaker, an eminent professor or their mate who likes eating…I look forwards to sharing some of these interviews with you which they have written up in blog form (of course, as the blog is another practical tool the students must master).

And how best for students to learn than to meet people who are “doing”, who can speak with confidence about their career paths and what it’s like to be at the coalface of an organisation. So we were privileged to have some time with Mr Diarmuid O’Connor (Global Agrimaterials Sourcing Manager at Nestlé Nutrition) who captivated us because he didn’t give us the blarney but told us what he did and why, and how sustainability made business sense and that he’d been working for over 20 years to support farmers in producing high quality materials for Nestlé.

I’m looking forwards to some more straight-talking guest speakers coming into the classroom over the coming weeks including Mme Isabelle Chevalley, conseillère nationale in the Swiss parliament who will speak to us about GMOs in Switzerland and Mr Sebastien Kulling who is working on a start-up in the food sector.

Prof. Marina CurranAuthor: Marina Martin Curran PhD,
Professor at BSL

The Panama Papers

If in the past two months you haven’t heard about the Panama Papers then you must have actually been living under a rock.

The Panama papers are the largest leak in the history of data journalism. 11.5 million documents, 2.6 terabytes of data, have been leaked to the journalists of Süddeutsche Zeitung, a German daily newspaper. There was so much data that the journalists shared the information with the ICIJ, the International Consortium of International Journalists, who in turn shared it with 400 journalists from 80 different countries. What is surprising is they managed to keep the information under raps for a whole year while they sifted through the data. Only in April did the first articles start being published regarding the Panama Papers. These documents exposed the rich and powerful who use an intricate network of offshore companies to hide their wealth from authorities and the public eye.

Almost everyone who is famous or powerful were implicated. From Lionel Messi to Putin, from European politicians to the Middle Eastern ruling class. Some of the most interesting stories don’t involve despots or dictators but democratically elected politicians from Europe. There is the case of David Cameron who owned shares in his late father’s offshore investment company or Sigmundur Gunnlaugsson the prime minister of Iceland who failed to disclose that his wife’s offshore company owns bonds from three defunct Icelandic Banks that his government is negotiating with, a clear conflict of interest. He was the first casualty of the leaks as he was forced to resign last month. There is now a famous interview of him walking out when a journalist asks him about his wife’s company.

Fans of Real Madrid can rejoice that at least their golden boy, Cristiano Ronaldo, wasn’t mentioned in the Panama Papers unlike his counterpart in Barcelona who has been mired in tax evasion court cases since last year. Messi was already in trouble with the Spanish tax authorities. He is accused of evading tax in the tune of 4.5 million Euros that he owes the Spanish Government. The Panama papers reveal just how he managed to hide his money. It was shown that from 2005 Messi sold his image rights to offshore companies situated in different South American countries. If any company is interested in using Messi in their advertising, then they will have to pay the fees to these offshore companies and the Spanish Government can only look on. Of course, Messi and members of his family own these offshore companies so essentially Messi sold his image rights to himself.

But some of the leaks show a very dark side to offshore companies. Documents showed that from 2011 to 2013 the Syrian government was using offshore companies, provided by Mossack Fonseca, to avoid sanctions and purchase fuel needed by the Syrian air force. Mossack Fonseca’s response “We did not know that Assad and his allies were using and abusing our services”. The Panama Papers also exposed a scheme by Heritage Oil Corp; a US based Oil Company, to avoid paying taxes to the Ugandan Government. In 2010 Heritage Oil sold 50% of its stake in Ugandan Oil fields to a local company for $1.5 billion. Under Ugandan tax law, Heritage Oil owes the Ugandan Government $400 million in Capital Gain tax. So what does Heritage Oil do? Thanks to Mossack Fonseca all it took to avoid paying its Capital Gain tax was the switch of an address from the Bahamas to Mauritius who does not have a capital gains tax. The Ugandan government has been in courts trying to force Heritage Oil to pay what its due ever since.

Will the Panama Papers spell the end of offshore tax heavens? Now don’t get me wrong, establishing an offshore company is a completely legal practice. But the leaks showed that 95% of Mossack Fonseca’s business was to help its clients hide assets from the tax collector.

If the subject interests you, I suggest visiting Sueddeutsche Zeitung and ICIJ’s website regarding the leak. If you enjoy reading spy thrillers, works of fiction or fantasy then the Panama Papers are for you. The Panama Papers expose CIA operation in the 80’s like the Contra affair where the CIA used offshore companies to sell weapons to the Iranian government.

Are you a football fan? Other than Messi the Panama Papers exposes even further misconduct by FIFA. One member of FIFA had established alone over 400 offshore companies.

Are you a World War II buff? The Panama Papers shed light on a painting that has been missing for 52 years since the Nazi occupation of Paris. Now it has surfaced right here in the dry-dock of Port Franc in Geneva Switzerland. The painting is being held there as the grandson of the original owner sues the current owner, Helly Nahmad, the famous American art dealer.

I can continue with the story for another 10 pages but I don’t want to rob you, the reader, from that “Ooooh!” moment. Truly the Panama Papers are stranger than a work of fiction.

Author: Abdullah Kaki, Master in International Business student, 2016

 

How to negotiate for Ethics in a Crisis: The Greenpeace-Nestlé case

In March 2010 food-giant Nestlé had to learn the hard way, how to (not) react to a hostile NGO attack: Greenpeace had released a video that made the link between palm oil used in Nestlé’s Billion-Dollar-Brand KitKat and the destruction of rain forests in Indonesia that kills Orangutans.

http://www.greenpeace.org/international/en/campaigns/climate-change/kitkat/

The video was shocking and went viral in no time. Nestlé’s first reaction was to prohibit Greenpeace to show the video on the internet. A bad move in the world of social media, because this even multiplied the interest in the video. This was probably even wanted by Greenpeace because consequently the campaign gained an unbelievable momentum: Internet users kept sharing the video and as a sign of solidarity even used the logo of the Greenpeace campaign (the KitKat brand logo modified into Killer) as their Facebook profile picture.

Of course, Nestlé did not actively kill orangutans, like the video suggested. The problem was created deep down in their supply chain. Palm oil is cultivated in South-East Asia and it is an ingredient of about 50% of all products that we buy on a daily basis: Shampoo, cookies, lipstick, ice-cream. It is virtually everywhere. It is cheap, it grows fast, it does not have a strong taste, it keeps chocolate solid at room temperature. One hectare of palm oil will give you six tons of oil. In comparison: one hectare of soy only generates a yield of one ton of oil. No wonder the world’s hunger for palm oil is ever increasing. Consequently, cultivators of palm oil actually do cut down rain forests in order to set up huge mono-cultural palm oil plantations, thereby destroying the habitat of orangutans. However, they also lift people out of poverty and build schools and hospitals. Palm oil and deforestation is a classical « wicked problem », i.e. it is complex, controversial, value driven, concerns many stakeholders and spans many domains (economic, social, political, legal, ethical). This is why such problems are very hard to solve.

In my class « Business Ethics and Negotiation » I confront my students with this case and then they need to figure out in a group work what had gone wrong in this case and develop a strategy for what Nestlé should do next. I ask them to imagine that they are the top-notch Ethics and CSR consultant and that they need to convince the Nestlé board.

This spring we had the great pleasure and privilege to actually receive the debriefing for the group work form the real-life world class CSR consultant who had helped Nestlé to cope with the KitKat crisis: Scott Poynton from The Forest Trust, a non-profit organization, that helps companies to improve their supply chains.

Guest-speaker Scott Poynton

Guest-speaker Scott Poynton

Scott is a hybrid between an activist and a consultant: He had realized that fighting deforestation and other sustainability disasters was more effective with companies than against them. Consequently, he became a “critical friend” to corporations in environmental trouble. Scott has helped some of the world’s leading companies to transform their supply chains for the better.

That made him the perfect mediator for Nestlé: He understood the problems multinationals have in keeping their supply chains out of trouble and he also is a trusted person at Greenpeace.

Scott shared with us that companies when being attacked by an NGO like Greenpeace often have trouble understanding the issues. This certainly was the case when Nestlé was attacked. The Nestlé top-management tried to explain to the Greenpeace spokesperson of the campaign on the phone that the company was doing a lot for the environment. Greenpeace campaigners know this kind of reaction and they usually react by saying: « They do not get it. They need more pain. » And they did get more pain, when Greenpeace campaigners dropped from the ceiling and unfolded banners during the Annual General Meeting.

This is why Scott’s first lesson for companies under NGO attack is to really understand what the issue is and what your responsibility is.

The Forest Trust helped Nestlé produce and implement « Responsible Sourcing Guidelines » with the objective to avoid sourcing palm oil that was linked to deforestation.

It turned out that many of my students’ good suggestions for change were too long-term to really help Nestlé out of the acute crises they faced: Reforestation, finding a substitute for palm oil are all good ideas, but they take too much time. Nestlé needed to get its valuable brand KitKat out of the negative headlines quickly and reach an agreement with Greenpeace that they would give them a break in the campaign.

In order to do this Scott’s second lesson is: Find common ground. This is easier said than done. The worlds and mind-sets of NGos and companies are often quite contrary. A company fighting to save the profits of very successful brands like KitKat notoriously have trouble seeing the ethical issue hidden somewhere in the product’s supply chain. At the same time, for NGO activists it is very hard to understand how you could not see it. This creates tensions. Then just throw in some pride and ego and the fact that in a corporation nobody wants to be blamed for these kinds of messes and you have an explosive mixture for a first negotiation meeting.

This is why, for Scott, one of the most important things (yes, this is lesson Nr. 3) in negotiating in heated situations is to start with the values of the persons involved. If you want to mediate between conflicting parties, you always need to genuinely believe that your negotiating partner is a reasonable, rational, and decent person. If you enter a sensitive negotiation already convinced that your counterpart is mean and evil, they will sense this instantly and the necessary basis of trust cannot even be started to be built.

Scott’s stories show very nicely that if you want to negotiate for issues around ethics and sustainability, you cannot use the standard “I win – you lose” approach to negotiation. In this approach, we only divide the cake and try to get the biggest piece of it. This does not work, when you are dealing with “wicked problems”. In these cases, concentrating on positions only leads to impasse, misunderstandings, blaming, and zero-sum games that nobody can win.

If you want to successfully negotiate conflicts around wicked problems, you need to concentrate on interests and try to create a larger cake for all parties involved. Nestlé was not interested in deforesting Indonesia and killing orangutans. They are interested in having a well functioning supply chain for good quality palm oil. In order to find out the interests of the other party, you have to stay open and not judge the other side. You have to ask the right questions to understand them, listen carefully and then you can find common ground.

Thank you, Scott, for bringing to life what my students have learned in theory and negotiation role plays in class in a way that they will remember every time they will eat a KitKat.

Prof.-Bettina-PalazzoDr. Bettina Palazzo
Professor at BSL

Enabling Inclusion in Business – Politicians and Business people need to talk!!

Getting ready for our Enabling inclusion in Business was a very interesting experience for me – it made me rethink the situation of women in business yet again!

Having been very involved in the area of women in politics in the Canton of Vaud for the last 10 months, you might like to have a  look at the initiative of the CLAFV (www.clafvd.ch) and ADF (www.adf-vaud.ch) where these 2 associations have worked together with the Bureau of Equality to encourage more women to go into Swiss politics (www.politiciennes.ch).

This interesting initiative made it very clear to me that there is very little contact between the women politicians I talk with regularly and the women in business in Switzerland today! And this is a big problem.

Have you seen the Economist gender gap index?  It is nothing short of horrifying. Switzerland performs very poorly in comparison with the OECD average and the 21 countries considered in this study.  One big problem is the cost of child care, over 40% of the revenue earned.  Is it worthwhile, one might ask to go back to work considering this high cost.

Looking forward to talking about this and lots more tomorrow in BSL.  Updates of that meeting to follow!

 

Author: Mary Mayenfisch-Tobin, BCL, LL.M, Solicitor
marymayenfish