April 2018

Bottom-up Sustainability: Let’s make CBS the First Business School with a Green Community Currency!

by Stine Eiersholt & Lena Tünkers.

In an earlier BOS article, Louise Thomsen from CBS PRME asked the question whether universities are falling behind on the green transition. We, as students, might not feel resourceful enough to bring up the debate about sustainable development and large-scale transitions. But in fact, we have tremendous possibilities to help our own institutions walk the walk towards reaching a more sustainable environment, for example with a campus currency.

One foot first and then another

We are students. We don’t have to wait for people in a boardroom to decide whether or not to add sustainability to the agenda. We can start taking the first steps now. Today. You can actively engage with socially responsible or green student organizations, participate in events concerning everything from circular economy to the sustainable development goals (SDGs) and you can try and influence such things as how the canteen handles food waste. Why not just take an extra step and start transforming the campus ourselves? That is what the SuPo community currency project is all about: Creating bottom-up sustainability at CBS campus. Since the beginning of the project, we have already taken many steps, some of which took us down the busy streets of Manhattan towards the office of the UN Global Compact.

1 Hackathon, 4 SDGs and 3 strangers

Let’s rewind for a second to explain how we ended up in the Big Apple on a chilly day in March. This recap is for those of you, who have been so focused on this semester’s curriculum that words such as SuPo, Sustainable Campus Hackathon and PRME have escaped your vocabulary.

The number 3 has always been magical. We were three girls, from three different countries and three different universities who met for the first time during the Sustainable Campus Hackathon in November 2017 at the Student & Innovation House. The hackathon involved four SDGs and the aim was to encourage sustainability-driven changes of the CBS campus. Coincidentally, we decided to team up to develop an idea related to green infrastructure during the day-and-a-half long case competition. After walking around in circles for 6 hours trying to come up with the right idea, we somehow had a ‘light bulb moment’ after some much-needed pizza: the idea of SuPo was born.

SuPo; a CBS community currency to promote sustainable behaviour where virtual points can be earned and spent around the campus. Suddenly we were rushing through a 4-minute pitch, first at a preliminary heat, then the finale. It felt unbelievable, but we won. Now to the exciting stuff: Besides implementing SuPo at CBS, the prize included flying to New York City to present our idea to the joint UN Global Compact and PRME office!

The project takes off

Thanks to our jetlag, there was no need to set an alarm as we were wide awake by 3 am anyway. Over the last few weeks we have been excitedly talking about this day so many times, each day with increasing anticipation. Today was finally the day: The bags were packed, the presentation was tuned, the shirt ironed. We were ready to present at the UN Global Compact office and share with them how we thought this project could transform our campus for the better. It felt like a massive step. And it was still just 5 am.

SuPo took a bite of the Big Apple

To start off on the right leg that morning, we had a good old American bagel with coffee before rushing through the busy underground metro network to the first meeting of the day. After an introduction by the UN Global Compact and PRME, we took the floor and presented the Sustainable Campus Hackathon as well as the ideas, collaborations and visions behind the SuPo project. The 2-hour long meeting was an incredible experience for us and everyone present participated in the discussion after the presentation. The idea about a community currency based on sustainable behaviour definitely gained support, as one of the UN interns was asked to research the possibilities of inferring a similar system within the UN office. Mission accomplished!

Our next stop was the Social Innovation Lab of Fordham University which is located right at South Central Park. Our morning bagels were long gone by now, so our empty stomachs were rumbling when a range of American pizzas were brought in. You know, the thick, cheesy, mainly meat style pizzas you see Joey eat in Friends. We started the meeting by giving a less detailed presentation of SuPo. Afterwards, the Social Innovation Lab students shared their own projects and interests which ranged from projects on self-sufficient housing to project collaborations with large environmental-advocacy networks. Impressive. Later that day, we received emails from the professors present at the university meeting highlighting their interest in testing SuPo at Fordham as soon as a pilot project has been developed at CBS. They were also eager to organize their own Sustainable Campus Hackathon with help from the organizers in Copenhagen. What a day!

Get involved and create change

It took one hackathon and one good idea before we sat at the long meeting room table in the UN Global Compact office. It took a few more meetings at home before we were able to sit around that table and talk about collaborations on sustainability across the Atlantic. If we can do that in the space of four months, so can you. Get involved around campus, make up your own projects or join the SuPo community. We would love to get involved and take our next steps with you.

Since the hackathon, SuPo has grown to become a CBS-owned project with funding and staff support. The short-term aim of the project is to develop a simulation of the community currency and a pilot project at CBS. Never before has a community currency been introduced to a Business School – SuPo could be the first one. So rather than closing the SuPo chapter after NYC, we embrace the positive response we got on our trip and will use it to push harder for the development of SuPo. The difficult but exciting journey of creating a reward system for sustainable behaviour on CBS campus is just taking off.

If you want to be part of the future SuPo story and join a thrilling sustainable movement to make an impact, get in contact or like & follow us on Facebook and Instagram.

Stine Eiersholt is a MSc in Climate Change student at the University of Copenhagen and works as a student assistant at Climate-KIC – a European climate innovation initiative. In her free time, she hosts a podcast called Influenced by Nature with the aim to highlight people and projects striving to solve climate change, environmental and sustainability related issues. Follow her on Twitter: @inflbynature

Lena Tünkers is a master student at CBS studying Organizational Innovation and Entrepreneurship with a strong interest in innovative business models that lead to more sustainable behavior.

Making it to the World Heritage List: Envisioned and Hidden Effects

By Lotte Thomsen.

UNESCO’s World Heritage designation of places around the world has the honorable purpose of taking responsibility. Taking responsibility for the preservation of things that may otherwise be left unpreserved, and for which destruction would be a severe loss. Yet, making it to the World Heritage List is known to have both positive and negative effects that reach far beyond the preservation of, for example, architecture. It may change the daily life of host communities immensely – not least in the Global South. The World Heritage site of Hoi An in central Vietnam is one of those places in which listing has led to preservation and enormous change at the same time! The city itself certainly is both well-preserved and stunning. But what is going on behind the facades of the beautiful old houses that millions of tourists visit every year? And what are the effects on the business sector?

‘Authenticity’ and Retail in Hoi An
In the newly published article ‘Retail in Places of World Heritage and Transition: Selling Clothes to Tourists in a Context of ‘Planned Authenticity’’ (Thomsen, 2018), I show how Hoi An’s transformation into a heritage tourism site has led to the emergence of a clothing retail sector that barely existed before. The sector plays a key role in the city’s contemporary tourism industry, and has come to appear as an ‘authentic’ part of the landscape of ancient buildings and monuments.

The paper shows how the creation of a clothing retail market was linked to a well-planned configuration of an ‘authentic’ Tailor City. It is to a large extent a reflection of interactions between the transitional Vietnamese economy and heritage listing. And it is reinforced by the urge of tourists to buy presumed place-specific products such as souvenirs or tailored clothes to preserve their memories of the place of Hoi An – regardless of how few links such products actually have to the place or its history and traditions.

A Retail Landscape of Opportunities and Challenges
So, why is this revitalization of Hoi An not merely impressive, but also in some ways problematic, not least seen from a development perspective?

Well, heritage designation did in many ways boost the city’s economy, making Hoi An one of Vietnam’s largest tourist attractions. And surely this came about due to extremely well targeted and impressive local planning in interplay with the World Heritage listing. It also created much needed jobs and prosperity linked to the tourism industry in the formerly poor agrarian area. Still, the revitalization of the city also represents a development that is highly uneven. It has made certain people more powerful, some activities and products more important and ‘authentic’, and some retailers better positioned in Hoi An’s tourism economy than others.

The paper shows how the opportunities of the clothing retailers vary significantly and are related to their status within a network of tourism stakeholders. A network that is intrinsically related to the ways that businesses and the state interact in Vietnam’s transitional economy. My intention here is not at all to point fingers at the Vietnamese authorities that cleverly utilized highly needed opportunities for economic development. What else should they have done? My intention is also not really to blame UNESCO that acted to preserve invaluable world heritage.

The impact on clothing retailers that are explored in much more detail in the paper was not easily foreseen. Yet, certain consequences could perhaps have be mitigated if international interventions like those of UNESCO are done with more caution and based on a deeper understanding of those local contexts and relations they tip into.

The example of Hoi An surely serves to remind us to critically assess and consider all kinds of effects of interventions locally. It reminds us of the importance of understanding better how different types of interventions – that undoubtedly are essential in their own right and done in the spirit of responsibility – play out differently in different places.

The full paper can be accessed via this temporarily free link: Thomsen, L. (2018). Retailing in places of World Heritage, transition and “planned authenticity.” Geoforum,91, 245–252.

Lotte Thomsen is Associate Professor of Business and Development at the Department of Management, Society and Communication at Copenhagen Business School. She holds a PhD in economic geography from Copenhagen University.

Pic by Qui Nguyen Khac, Pixabay.

Why it Doesn’t Matter that Facers are Annoying

By Jacob Schjødt.

You are walking down a high-traffic street in Copenhagen minding your own business. You’re thinking about the new pair of pants you’re about to buy. But then. About 30 meters ahead. You see something that immediately provokes a feeling of mild anxiety. You decide to take a detour, and walk to the very edge of the street. But it’s too late. You have already been spotted. A friendly looking young man with long hair, piercings and a big smile calls at you. ‘Is it me, he’s calling at?’ you ask yourself – hoping the answer to be ‘no’. But it is you. You have been caught. By a Facer.

What is a Facer?
In the most general sense, a Facer is a professional salesperson who sales products, services or memberships face-to-face. Facers are usually found on high-traffic shopping streets in large cities. Facers can take many forms and promote various causes, ranging from Scientology to insurance and memberships to charities. In this blog, I will only consider the latter, as you know them from Unicef, Amnesty, Care etc.

Why Facers are annoying
Usually when people talk about facers, they readily settle on the apparent fact that Facers are rather, if not very, annoying. And, in general, I agree with these people: Facers are annoying. They force you out of your comfort zone, they completely ignore your interests, and they ask you to consider something that is not at all related to your life. Facers force you into a situation in which you have to choose between two negative outcomes: 1) feel bad about not helping someone in need or 2) give away money that you had other plans with. Also, facers are fake. Facers pretend to like you, just to get your money. This creates an unfamiliar and unpleasant encounter in which it’s easy to feel that you have to be rude to maintain a sense of control. And the list goes on…

And Why it Doesn’t Matter That They Are
The situation is clear. Facers are super annoying. But to jump from this fact of reality to the conclusion, that one should not support their cause – or that it’s fine to talk ill of them – is a school book example of an ad hominem argument. Contrary to many other cases of ad hominem thinking, however, we can actually justify Facer’s annoying behaviour (assuming that we sympathize with the charity they are promoting).

A decent facer can sign up 3 new members on a 6 hour shift, and these member will donate around 75-150 DKK per month. A charity membership lasts about 1.5 years on average (an estimate), and a Facer makes around 120DKK per shift (depending on their salary model). If a Facer works 2 times per week, he/she will then make around 60.000 DKK in a year, and earn the charity well above 400.000 DKK. If you thought being annoying could save lives, wouldn’t you be annoying?

Beware of the Facer Fallacy
Our tendency to found moral arguments on unpleasant feelings is one of the most heavily supported claims in moral psychology (Haidt, 2001; 2012, Haidt et al., 2000; Greene, 2001; 2009; 2014). I think that Facer-bashing is a solid example thereof. I think that we too readily succumb to a ‘if the messenger is annoying, he cannot be on to something’, fallacy when it comes to Facers, and that we should make an effort to develop a more positive attitude towards these people and their work.

References

Haidt, J. (2001). The emotional dog and its rational tail: A social intuitionist approach to moral judgment. Psychological Review, 108(4), 814–834. https://doi.org/10.1037//0033-295X.108.4.814
Haidt, J. (2012). The righteous mind. Why Good People Are Divided by Politics and Religion …, (January), 1–508. https://doi.org/10.1017/CBO9781107415324.004
Haidt, J., Bjorklund, F., & Murphy, S. (2000). Moral dumbfounding: When intuiton finds no reason. Working Paper. https://doi.org/10.1017/CBO9781107415324.004
Greene, J. (2014). Moral Tribes. Emotion, Reason and the Gap Between Us and Them, 300. https://doi.org/10.1017/CBO9781107415324.004
Greene, J. D., Sommerville, R. B., Nystrom, L. E., Darley, J. M., & Cohen, J. D. (2001). An fMRI investigation of emotional engagement in moral judgment. Science, 293(5537), 2105–2108. https://doi.org/10.1126/science.1062872
Greene, J. D. (2009). Dual-process morality and the personal/impersonal distinction: A reply to McGuire, Langdon, Coltheart, and Mackenzie. Journal of Experimental Social Psychology, 45(3), 581–584. https://doi.org/10.1016/j.jesp.2009.01.003

Jacob Schjødt is a Master student of Business Administration and Philosophy at CBS and Student assistant at CBS PRME. He has been responsible for organising the first Students for the Global Goals Festival at CBS on April 11, 2018. Follow CBS PRME on Facebook and Twitter for the latest updates.

Pic by Daniel Lombraña González, Unsplash. Edited by BOS.

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.

The Winners and Losers of Reward-based Crowdfunding

By Kristian Roed Nielsen.

Proponents of reward-based crowdfunding have touted its emergence as an alternative source of innovation finance as an exciting and democratizing event. This democratization is enabled via the unique blend of crowdsourcing (Poetz and Schreier 2012) and micro-financing (Morduch 1999). Fundraising is enabled by a widely dispersed community of users, whose interactions are facilitated by one or more platforms (e.g., IndieGoGo, Kickstarter, Kiva), trading “a small group of sophisticated investors” for “large audiences (the ‘crowd’)” (Belleflamme, Lambert, and Schwienbacher 2014:2). But how does the change in investors really change who is rewarded – basically who are the winners and losers of reward-based crowdfunding? It was with this question in mind that Caleb Gallemore, Kristjan Jespersen and I set out to follow the money and identify exactly where and who benefits from this new source of finance by analyzing data from the large US-based reward-based platform IndieGoGo.

Where does the (crowd) money go and why?
Firstly, and perhaps not surprisingly, it appears that it is the already affluent regions that benefit the most from crowdfunding activities, while less well-off areas still receive the short end of the stick. Clearly while crowdfunding may offer an extra opportunity for achieving financing, this does not offset other factors that play an important role in entrepreneurial success e.g. background, education and social network that favour areas already affluent.

More surprisingly we also found that increased competition – i.e. more campaigns – actually increase the likelihood of funding success. For each percentage increase in the number of campaigns in the same neighborhood, we estimate a decrease of about 11% in the odds that each of those campaigns will receive no funding pledges. Indicating the increased competition actually results in a net positive outcome where campaigns rather than leeching of one another, generate momentum for further success. This may be because of increased levels of visibility of crowdfunding activities as a whole at the local level. In other words, people living in areas with more crowdfunding activities might be more aware of the practice, increasing the pool of potential investors. Another possibility is that areas with high levels of crowdfunding activities might generate local communities that can share knowledge and advice about the process, improving the quality of local ventures.

Finally, and still undergoing analysis, we increasingly find that certain people are – naturally – more successful then others at achieving crowdfunding success. Witnessing that for each successful campaign launched by an individual or group the likelihood for future success increases dramatically – hence after five successful campaigns launched by a given person or group they have a near 100 pct. chance of future success. We are perhaps witnessing the birth of the professional crowdfunder.

Crowdfunding as the democratizing agent of innovation?
As money seems to coalesce around certain regions and individuals we have to wonder whether this trend will continue. Will we increasingly see certain regions and individuals benefitting while other less well-off or professional lose out? And what does this mean for crowdfunding as the democratizing agent of innovation? It offers opportunity for you and I to drive innovation, but that innovation process itself perhaps unsurprisingly still seems to cluster around certain regions and persons. While this is by no means the final word – this is still early day research of only one sample – these observations nevertheless complicate the idea of relying on crowdfunding as a new mechanism for economic development, poverty reduction, or social action. While crowdfunding certainly provides a new way to access capital, it may not provide such access equitably.

Kristian is Assistant Professor at the Department of Management, Society and Communication and Visiting Researcher at Mistra Center for Sustainable Markets – Stockholm School of Economics. His research explores the potential role that “the crowd” could play in enabling sustainable entrepreneurship and innovation. Follow him on Twitter @RoedNielsen.

Pic by olgavisavi, via Fotolia.