IMPACT magazine - Issue 13 by Durham University Business School

J anuary 2 02 4

Social sustainability in the workplace

SustAInability: How A.I. can steal our jobs but save our planet

Tackling a tidal wave of plastic pollution

The sustainability issue

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Welcome IMPACT / Issue 13

Welcome to issue 13 of IMPACT magazine, the School's thought leadership publication.

he theme of this issue is sustainability. With the Conference of the Parties (COP) 28 having recently taken place, experts from our faculty were in attendance. This is no coincidence. The School has long recognised the importance of sustainability whilst actively championing the sustainability agenda through our research and teaching activities. This issue of IMPACT showcases both. Central to our vision and mission are the United Nations Sustainable Development Goals (SDGs) and the Principles of Responsible Management Education. It feels appropriate, therefore, that we open this issue with insight from our Associate Dean for Ethics, Responsibility and Sustainability, Professor Martyna Sliwa, who addresses social sustainability in the workplace based upon her extensive research, covering SDGs 3 (health and wellbeing), 5 (gender equality) and 8 (decent work). Professor Pablo Munoz and PhD candidate Marieshka Barton continue the workplace sustainability theme, examining mental health in entrepreneurship. Education lies at the heart of sustainable leadership, as highlighted by Professor Helen Goworek, who shares her involvement in the Climate Literacy Training initiative, addressing how we educate future business leaders in sustainability here at the School. Climate change education is important. Dr Aarron Atkinson-Toal examines the psychology of climate change conspiracy theories and how shareable content can lead to dangerous misinformation. The

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dual-edged sword of technology in sustainability is also addressed in the article by Dr Chrysostomos Apostolidis, where he considers how Artificial Intelligence has the power to save the planet but at what cost to jobs. Nevertheless, technology can assist with sustainability education. John Hirst and Dr Cat Spellman demonstrate how technology in the form of gamification can transform how we get our future leaders to develop their futures thinking skills. Amidst discussions at COP28, questions continue around financing and monitoring the transition to a global net zero future. How do we square the circle of allowing the developing countries to grow economies and lift their populations out of poverty in line with the SDGs while taking fossil fuel and resources exploitation out of the equation? What policies should we pursue? While we don't claim to have all the answers, articles by Dr Guanming He, Professor Kieran Fernandes, Professor Carol Adams, Professor Anna Tilba, Dr Wenjuan Ruan, Professor Kevin Dowd, Professor Habib Ahmed and Dr Bettina Bechter seek to shed light on the issues presented. Turning our focus to environmental sustainability, Professor Atanu Chaudhuri addresses how we tackle ocean plastics, while Dr Guanming He investigates the impact of air pollution on businesses. Sustainability continues to the engagement section of IMPACT with an MBA Strategic Consulting project which supports new financial models for the Global Reporting Initiative,

a thought piece by PhD candidate Lucy Naga based on her individual morality and sustainability thesis and Global DBA candidate Katlego Mogoba exploring funding solutions for Africa’s transition and adaptation. We bring this issue to a close with the latest news and events from the School. This section has too much great content to mention everything here, but I will highlight our new Memorandum of Understanding with the UK Government’s Darlington Economic Campus, our MBA mentor of the year Nabil Parkar and the fantastic round-up of our latest accreditation and rankings results. Fittingly for this issue, our full-time MBA programme was ranked 10th in the Corporate Knights Better World MBA Rankings 2023. I trust you'll find this issue of IMPACT magazine both enlightening and inspiring and I wish you a happy and sustainable 2024, filled with meaningful steps toward a better future.

Professor Cathy Cassell Executive Dean

Contents The sustainability issue Issue 13 / 2024

Credits The IMPACT Team Katrina Savage Senior Marketing Manager Business Partnering Martin Thomas Marketing Manager Lindsay Webber Marketing Relations Manager

Let’s talk about social sustainability in the workplace

MIND Your Business: Tackling the mental health crisis in entrepreneurship Professor Pablo Munoz and Marieshka Barton on how to best support struggling entrepreneurs with their mental health.

Professor Martyna Śliwa discusses her research into workplace 'micropractices' and what changes can improve organisational culture.

Jon Gibson Student Recruitment Relationship Manager Sophie Patterson Communications Officer Stephen Close Marketing Officer Jade Gourley Marketing Officer Paula Lane Marketing Officer Charlotte Wareing Marketing Officer Deanne Dutton Conversion Relations Officer

Gillian Longthorne Marketing Conversions Administrator

Providing high impact climate solutions with climate literacy training Professor Helen Goworek shares how an initiative started in 2013 has developed into training to help staff and students counter climate change.

Thank you Thank you to all those who have worked on this issue including faculty, other School staff, students, alumni and business connections.

Contributors Professor Carol Adams Professor Habib Ahmed Dr Chrysostomos (Tommy) Apostolidis Dr Aarron Atkinson-Toal Utsa Bajaj Marieshka Barton Dr Bettina Becker Our quadruple Sue Boyd systems framework Professor Cathy Cassell Professor Kevin Dowd for sustainability Professor Kieran Fernandes Professor Kieran Fernandes Professor Helen Goworek shares how the University Kristen Gron is working with businesses Dr Guanming He John Hirst and governments for a more Professor Grant Ingram sustainable economy. Matteo Lai Dr Zhichao Li Professor Jo McBride Katlego Mogoba Professor Pablo Munoz Lucy Naga Steph Osborne Nabil Parkar Dr Wenjuan (Wendy) Ruan Professor Martyna Śliwa Dr Cat Spellman Professor Anna Tilba BlueSky PR

Front cover The United Nations Sustainable Development Goals can seem like a giant puzzle.

Gaming the system: how scenario exploration can change how we view the future Associate Professor John Hirst and Dr Cat Spellman on a games-based learning tool for Futures Thinking skills.

New appointments to the Professor in Practice Initiative We welcome Sarah Pritchard, Michael Izza and Ian Baggett.

Durham University Business School / IMPACT

Sustainabilty 06 Let’s talk about social sustainability in the workplace Small changes to improve organisational culture 10 MIND Your Business: Tackling the mental health crisis in entrepreneurship The latest research into why it’s a lonely road – and what can help 14 Providing high impact climate solutions with climate literacy training How staff, students and you can learn how to counter climate change 16 I want to believe - the psychology of climate change conspiracy theories The truth is out there, but fake news is spreading fast 18 SustAInability: How A.I. can steal our jobs but save our planet Why it's all hands on deck for artificial intelligence readiness 21 Gaming the system: how scenario exploration can change how we view the future An innovative way to teach Futures Thinking skills 23 Fighting poverty: a win-win for Chinese listed firms and society The benefits of corporate participation in poverty alleviation 25 Our quadruple systems framework for sustainability And five ways we’ve already made an impact 28 Sustainable developments, reporting standards and setting a blueprint for the future Why they’re crucial to achieving real change 30 The influence of proxy advisors and ESG agencies Professor Anna Tilba on her research into their true impact

Contribute Want to find out more or contribute to the next issue? Email us at Business.marketinghub@durham.ac.uk

31 Financial technology and decentralised finance: to embrace or forsake The ups and downs of central bank digital currency 33 The experience of free banking No central bank, no problem, says Kevin Dowd 35 Pursuing green innovation strategies boosts firms’ competitiveness but not performance The private sector has power but little incentive to act 37 Sustainability and economic systems: contemporary propositions and approaches Conflicting ideas on how we build a sustainable economy 39 Tackling a tidal wave of plastic pollution Why SMEs might have the biggest impact – while making a profit 42 Could air pollution be affecting firms’ investment decisions? The influence of breathable air on Chinese listed firms

Engagement 44 MBA Strategic Consulting Project – Aligning GRI’s strategy with its values We speak to MBA alumnus Abhi Sengupta about his project 46 Moral preferences, green consumerism and optimal commodity taxation Lucy Naga shares her doctoral research into individual morality

News and events 51 Competition and Markets Authority workshop Our two-day event with expert speakers from around the globe 52 Recognition round-up Sustainability and teaching excellence is key in our rankings performance 55 Masters in Energy Engineering Management How our MSc is teaching future leaders skills in sustainability 56 New appointments to the Professor in Practice Initiative Meet the three new experts joining our ranks 58 The future of work event A TEDx-style event on what we can expect post-pandemic 59 The cost-of-living crisis conference Multidisciplinary perspectives on the UK’s ongoing crisis 60 Mentor of the Year 2023 Nabil Parkar is this year’s winner for his MBA mentorship 62 Summer congregation Our celebratory events including awards for exceptional students 64 Return to China alumni events Welcoming our graduates in Beijing, Shanghai and Shenzhen

48 Searching for solutions to fund Africa’s transition and adaptation Why Katlego Mogoba chose the Durham-emlyon: Global DBA 50 Darlington Economic Campus – a growing relationship Our strategic partnership with the government hub

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Durham University Business School and Durham University logos are registered Trade Marks of the University of Durham. Unless otherwise stated, all material in this publication is the copyright of the University of Durham. The University makes every effort to ensure that the information contained here is accurate. This publication is intended as a general guide to the University of Durham’s facilities and form no part of any contract between you and the University. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form, or by any means, electronic, mechanical, photocopying, recording or otherwise, without the permission of the University. Please note that the University’s website is the most up-to-date source of information and we strongly recommend that you always visit the website before making any commitments.

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Sustainability

Let’s talk about social sustainability in the workplace

Professor Martyna Śliwa, Professor of Business Ethics and Organisation Studies, discusses her research into the small changes we can make to improve organisational culture.

Durham University Business School / IMPACT

iscussions about sustainability in business often focus on environmental sustainability. There are, of course, important reasons for why this is. As science tells us, global heating poses unprecedented challenges to the world, and immediate action is needed to prevent even greater and irreversible changes from occurring. According to the evidence underpinning the latest report of the Intergovernmental Panel on Climate Change, it’s been ascertained with a “very high confidence” that “climate change is a threat to human wellbeing and planetary health”, while at the same time, there’s “a brief and rapidly closing window of opportunity to secure a liveable and sustainable future for all”. Unsurprisingly, due to their significant potential to positively contribute to addressing the environmental sustainability challenges the world faces, businesses and other organisations are called upon to take these challenges seriously and to tackle them through effective action. Yet, there’s another dimension of sustainability which is, arguably, no less important, especially given its impact on people’s everyday working lives and livelihoods. Namely: social sustainability. While in recent years, we’ve become well versed and reasonably knowledgeable in matters such as climate change, carbon emissions, and biodiversity, we’re generally much less informed about social sustainability. Here, I’ll discuss what social sustainability is, how it connects to the broader United Nations (UN) sustainability agenda, what its implications for businesses and other organisations are, and what it means in the context of the workplace and in relation to individual careers. Social sustainability lies at the heart of the UN Global Compact, the largest corporate sustainability initiative in the world. It’s defined as being “about identifying and managing business impacts, both positive and negative, on people. The quality of a company’s relationships and engagement with its stakeholders is critical. Directly or indirectly, companies affect what happens to employees, workers in the value chain, customers and local communities, and it is important to manage these impacts proactively”. The UN Global Compact is based on Ten Principles. The first six focus on social sustainability: the need to eliminate human rights abuses, forced, compulsory and child labour, and discrimination in employment and occupation, and to ensure freedom of association and the right to collective bargaining.

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The principles speak to high-level social sustainability challenges and the role of businesses as a force for good for people and communities globally. Their implementation by companies is one of the strategic responsibilities of executive leadership. At the same time, at the local level of managing and leading individuals and teams, the relatively new and still evolving concept of social sustainability in the workplace (SSWP) is increasingly relevant, especially in light of the changes in the world of work – and changing attitudes – exacerbated and brought to light by the Covid pandemic. Achieving SSWP is connected to several Sustainable Development Goals, such as health and wellbeing (SDG-3), gender equality (SDG-5), and decent work (SDG-8).

Social sustainability lies at the heart of the UN Global Compact, the largest corporate sustainability initiative in the world.

There are some ways each of us can contribute to making our own and others’ careers more sustainable...

Sustainability

To a significant extent, the underlying conditions for accomplishing SSWP are provided by national legislation (e.g. regarding work and employment, as well as protection of the rights of minorities) and sectoral norms (e.g. in relation to the working environments in different industries). However, the ability to achieve SSWP also depends on the organisational culture, including the ways in which the organisation values and facilitates SSWP, as well as the approach taken by individuals towards their own careers. In practical terms, how can SSWP objectives be facilitated by organisations? The research I conducted with colleagues from the Universities of Lancaster, Dundee and Middlesex as part of the British Academy of Management funded project addressing Equality, Diversity, Inclusivity and Respect (EDIR) in UK Schools of Business and Management found that organisational working cultures are shaped by what we refer

...we can have clarity about our career objectives, how we can achieve them, and how they fit with our values, life priorities and plans...

...we can develop our self-awareness and selfreflexivity skills, and see work as an aspect of life with that can enhance and hinder wellbeing...

to as ‘micro-practices’. These are represented by everyday routines, behaviours, and instances of communication and interactions at work – which, even if sometimes difficult to pin down, are nevertheless consequential for workplace inclusivity and equitability, for employees’ and managers’ ability to thrive and fulfil their potential at work, and for everyone’s ability to maintain wellbeing and work-life balance. Based on the findings, the message is clear: if we want to change our organisational cultures – in particular, to create a more socially sustainable workplace – we need to pay attention to, and change, the micro-practices which comprise the organisational culture. To illustrate what such changes might involve, we’ve implemented a number of adjustments to our daily working micro-practices in the Business School, so as to improve our working culture and to support all staff in achieving a better work-life balance. These adjustments include scheduling meetings, where possible, within core hours (10am-4pm) Monday-Thursday and to end ten minutes before the hour/five minutes before the half-hour; keeping Fridays

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meetings-free and emails-light; and sending out emails, particularly internal ones, within University business hours (Monday-Friday, 8am-6pm). While these aren’t ‘set in stone’ rules, these adjustments are helping us develop more socially sustainable ways of working. Finally, how can individuals support themselves and each other in making their working lives and careers more sustainable? Both in my service as Vice Chair of the British Academy of Management for EDIR, and through my mentoring and professional development activities for academics and research students at DUBS and externally, I often participate in discussions about how to make academic careers more sustainable. Although every workplace has its own unique characteristics and pressures, and there’s no cure-all for the complex challenges of SSWP, there are some ways each of us – in academia and in other sectors – can contribute to making our own and others’ careers more sustainable. Developing our self-awareness and self-reflexivity skills; seeing work and career as an aspect of life with the potential to both enhance and hinder wellbeing; having clarity about our career objectives, what needs to be done to achieve them, and how they fit with the rest of our values, life priorities and plans; and being committed to a long-term academic ‘project’ that’ll continue to be important, regardless of changes in the institutional context, are paramount.

However, small actions in everyday working life are also crucial. Examples include: setting (realistic) goals in advance of each week; having a clear schedule, with some ‘spare capacity’ included every day; blocking time for different types of activities to avoid a sense of being overwhelmed; defining our boundaries; keeping track of how much our time is spent on work, rest, and other activities; taking time and effort to negotiate our workload; surrounding ourselves with people who share similar values and provide inspiration and support; building positive working relationships; recognising early and addressing difficult working relationships; and focusing on the positive aspects of work. Making such individual contributions to SSWP can be challenging. However, as the building block underpinning the accomplishment of all other aspects of sustainability, SSWP is worth striving for. Scan or click the QR code for more information on Professor Sliwa and her research interests.

…and take small actions, like setting goals each week, blocking time in our schedule with spare capacity, and by surrounding ourselves with supportive people who share similar values.

If we want to change our organisational cultures, we need to pay attention to, and change, the micro-practices which comprise the organisational culture.

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Sustainability

MIND Your Business: Tackling the mental health crisis in entrepreneurship Professor Pablo Munoz, Professor in Entrepreneurship, and PhD candidate Marieshka Barton explore the complex relationship between entrepreneurship and mental health.

Durham University Business School / IMPACT

he relationship between entrepreneurship and mental health is paradoxical. It offers extreme rewards and stress, producing conditions for both wellbeing and illbeing. For example, entrepreneurship has the potential to create intrinsic rewards essential for wellbeing, such as achieving autonomy, a sense of meaningfulness, feelings of success, and personal development. Yet, what gets entrepreneurs to engage in entrepreneurial activity can constitute the very same source of ill-being. High workload, risk, and isolation inevitably lead to high levels of stress and eventually chronic ill-being such as depression. The evidence is out there. Entrepreneurs in general exhibit higher rates of depression, anxiety, mental disorders and suicide. A 2018 study on the prevalence and co-occurrence of psychiatric conditions among entrepreneurs showed that they experience more depression (30%), ADHD (29%), substance use (12%), and bipolar disorder (11%) than comparative participants. Entrepreneurs believe that the associated depression is caused by the increasingly complex and competitive world they operate in. Entrepreneurship support organisations (incubators, accelerators funding agencies, etc.) have tried to address these mental health problems, yet the support offered might not be as positive as it seems, because it clashes with the very same services provided by these organisations. Take business incubation for example, as a central support mechanism in any entrepreneurial ecosystem. The main

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mission of incubators is to support venture development. To do so, they offer training and mentoring, which promotes a very specific set of skills and mindset that’s assumed to propel new venture development. Entrepreneurs are encouraged to persist, take risks, and be optimistic about the future. While important to foster entrepreneurial intentions and actions, research has found that these programmes often trigger negative emotional responses as protection in anticipation to potential failure. The design of support programmes should include activities to mitigate mental health issues and decrease anticipated negative emotions from new venture creation. Recently, some programmes have begun to integrate counselling services and mindfulness training in response to these problems. Yet, these are offered on the side, not as an integral part of the business development process. This is complicated because support programmes, like those offered by incubators and accelerators, can end up playing a dual role, creating the problem and selling the cure. This isn’t just a problem of incubators and accelerators. The entire support ecosystem surrounding entrepreneurs seems to be ill-equipped to address the problem.

Sustainability

Something was missing In February 2022, we decided to tackle this issue head-on. For 18 months, we worked collaboratively with six entrepreneurs and two County Durham-based organisations (MINT Business Club and Celebrate Difference ADHD) offering business, social, and emotional support to entrepreneurs, self-employed, and small business owners. We wanted to co-develop a refined understanding of the mental health experiences of entrepreneurs and co-create an intervention to mitigate potential negative effects. In our research, we found mismatches between expectations and experiences at three interacting levels – purpose, autonomy, and achievement – which surface as entrepreneurs reflect on execution, performance, and fulfilment experiences. Mismatches materialise as incongruence between the ideal states under pursuit and the entrepreneurs’ actual experiences, which compound, leading to a diminished sense of control, direction, and worthiness. These in turn fuel a cycle of negative emotions involving anxiety, isolation, shame, and guilt. In this sense, our findings suggest that it’s not the stressful experiences or heavy workload themselves that trigger negative emotions. Rather, it’s the compounding of incongruences between expectations of ideal states and actual experiences at the level of purpose, autonomy, and achievement.

What’s problematic about this process is that it affects the entrepreneurs’ self-worth. This is different from self-confidence and self-esteem, which focus on confidence stemming from competence in a targeted area and externally determined cumulative self-perception. Selfworth is an individual’s evaluation of themself as a valuable, capable human being deserving of respect and consideration, which develops over time, forming stable conceptualisations of self, with implications for psychological functioning. The deterioration of self-worth is particularly problematic in entrepreneurship. It affects how entrepreneurs value and describe themselves. Entrepreneurs with diminished self-worth can engage in rumination displayed by criticising themselves and their abilities. They rarely welcome compliments and tend to focus on mistakes, leading to negative judgments and overly critical evaluations of their entrepreneurial performance, and their value as both entrepreneurs and human beings. A diminished self-worth may lead them to avoid challenges, achieve less, and withdraw from social contact. Ultimately, frequent and intense self-flagellation leads to chronic ill-being, which is more enduring and challenging to treat.

The deterioration of self-worth is particularly problematic in entrepreneurship.

Durham University Business School / IMPACT

What are we doing about it? Equipped with this knowledge, we decided to turn the process on its head and develop an intervention we call MIND Your Business. MIND Your Business is a 6-week support programme that aims to support struggling entrepreneurs and small business owners. The programme equips participants with the necessary tools to counter the cycle of negative emotions and foster a compounding of positive congruence to improve self-worth. Early evidence suggests that the impacts are largely positive. Entrepreneurs feel that they now have “a space and time to think about how to make positive changes to help both my mental health but also my business.” The training is changing the way entrepreneurs think about work, employment and business. “It's so person-centred, and that's the thing with business owners, if the whole thing is set up centred on the person, their strengths and values, then it's also set up for success.”

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The design of support programmes should include activities to mitigate mental health issues.

Scan or click on the QR code to find out more about Professor Munoz and his research interests.

Scan or click on the QR code to find out more about Ms Barton’s research interests.

Sustainability

Providing high impact climate solutions with climate literacy training Professor Helen Goworek explains how a 2013 initiative started in the North of England can encourage staff and students to counter climate change.

he North of England was a central location when the Industrial Revolution changed the world in the early 19th century. While energy supplied by the coal industry and train travel, both centred in the North East, fuelled this revolution, Manchester in the North West was at the heart of innovation and production in the textiles industry, generating an economic boom. Although this was a revolutionary era globally, it’s been acknowledged that ushering in the industrial epoch subsequently led to the climate crisis that we face in the present day. Many Manchester residents felt a responsibility to address this major issue, and in 2013 a group called the Carbon Literacy Project (CLP) decided to develop accessible training to raise awareness of action that can be taken against climate change. CLP’s Carbon Literacy Training initially focused on the broadcasting sector, working with the production team of the UK’s most popular TV programme, Manchester-based Coronation Street. The Carbon Literacy Training takes eight hours, based on the idea that it requires the equivalent of a solid day’s work to achieve a sound awareness of key aspects relating to climate action. Participants can additionally choose to complete an assignment which qualifies them to teach this themselves, cascading their knowledge at their own universities or further afield. Professor Petra Molthan-Hill, an expert on sustainable management at Nottingham

Trent University (NTU) and Co-Chair of the PRME Working Group on Climate Change and Environment, brought this training into business schools after seeing its potential to make an even wider impact on society. Having adapted course content for business schools, aimed at staff and students in person, in 2020 Professor MolthanHill drew together a team of collaborators who volunteered to regularly support the training internationally online. This team is passionate about climate literacy and action and they've donated their time to provide access to this training to colleagues, for free, on multiple occasions. After gaining my own Carbon Literacy Training certificate that same year, I became a facilitator within this team of academics and practitioners. The course has now grown into a 10-hour course developed at NTU called Climate Literacy Training and is currently offered in weekly 2-hour sessions over five consecutive weeks, providing content which concentrates on positive outcomes to influence participants’ teaching, practice or individual behaviour. International attendance has grown, with support provided by the United Nations PRME (Principles for Responsible Management Education) Global Compact office in New York and Quacquarelli Symonds (QS) in the UK. Climate Literacy Training sessions are interactive, covering taught content on the science behind climate change and its impact. It emphasises that 99% of climate change scientists agree that increases in the world’s average temperature have been caused by human activity in this industrial era. Accessible tools are integrated within the activities, such as the EN-Roads Climate Solutions Simulator, developed by the Massachusetts Institute of Technology (MIT) Sustainability Initiative and Climate Interactive, which can be used in teaching to simulate the effect of managing factors like energy supply and transport to reduce global temperatures. The team facilitates breakout groups in some sessions, enabling attendees to discuss ways of reducing carbon emissions with colleagues from their own universities or from other countries. The BBC’s climate change food calculator is also used to assess the greenhouse gas emissions involved in our food choices.

We continue to offer Climate Literacy Training online, its growing popularity and relevance indicated by hundreds of attendees signing up for the latest training in September 2023.

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The extent to which this training had gained traction became clear when Yale University approached Professor Molthan-Hill to offer the course in 2020 and the training subsequently won Gold in the Sustainability category of the Wharton-QS Reimagine Education Awards. Academics from Australia, Africa, China and beyond have also completed the training. Zoya Zaitseva, Head of Partnerships at QS ImpACT (a global charity connected to QS) has become involved in organising and promoting the courses with our team in line with their aim to create social change. We continue to offer Climate Literacy Training online, its growing popularity and relevance indicated by over 400 attendees from around the world signing up for the latest training in September 2023. Several members of our team also collaborate in the UN PRME Working Group on Climate Change and Environment, where I’m co-lead for teaching and research. Since Climate Literacy Training is currently taught in English, we’re supporting those who wish to implement it in other languages or develop country-specific versions to encourage a wider global reach in combating climate change. For example, we now

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offer country-adapted versions in Australia and Pakistan, while versions are in development in India and Kazakhstan. In 2022 I ran an initial trial of the training online for Business School staff with Professor Geoff Moore. Dr Mary Nanyondo and Dr Nor Kadir, both Assistant Professors in Accounting, gained their certificates in 2022 and are now eligible to deliver the training to others. Jon Davidson, DUBS Digital Media Officer, credits one of the training sessions he attended with having a bigger personal impact than expected when one of the exercises encouraged him to make the decision to become vegetarian. Our colleagues can join us for Climate Literacy Training at future sessions in person in 2024 or sign up to train online with our UN PRME Working Group. If you’d like to express an interest in participating in Climate Literacy Training, please email Professor Goworek at helen.goworek@durham.ac.uk Scan or click the QR code for more information on Professor Goworek and her research interests.

Sustainability

I want to believe: the psychology of climate change conspiracy theories Dr Aarron Atkinson-Toal, Assistant Professor in Marketing and International Business, on how shareable content leads to the real threat of fake news.

limate change is a hoax. Global warming is fake news. The Earth is flat. Area 51 experiments on extraterrestrials. The Illuminati seeks to establish a New World Order. The US election was stolen. The coronavirus vaccine contains a tracking microchip. There’s something fantastically titillating about a conspiracy theory. Their magnetic pull from the mundane and ordinary to an alternate world of shadowy organisations, secretive governmental agendas and mysterious officials attempting to hide, conceal or manipulate information can be almost too difficult to resist, even by the most rational and level-headed among us. Perhaps even your mind has convinced you that your phone is listening to you right now, or that stories of a warming earth are overexaggerated and fake news, dreamt up by greedy corporations and governments to increase profits and control the population. You don’t need to truly believe these stories. You just need to hear them, consume them, crave more of them and most importantly, share and tell others about them. The more scandalous, salacious, unbelievable or incomprehensible the better. We long for escapism and to be heard in a noisy, overcrowded metaverse, where we battle the competition to ensure our beliefs thrive and survive, whilst convincing others to do the same. We neverendingly consume, create and share stories, ideas and opinions in the hope they are listened to, retold, reshared and retweeted. The unbelievable fact is, more unbelievable than Bigfoot or the Loch Ness Monster, we’re more likely to trust influencers than politicians or information on social media than information from news outlets, and that has consequences on the perpetuation of misinformation throughout a society as belief becomes prioritised over fact. So where does this craving for the sensational come from, and why do we believe it? Well,

there’s a reason why we endlessly scroll through random videos on TikTok until the early hours, become mesmerised by ten-second Instagram stories or repost captivating or controversial content on X. These stories, or memes, behave in the same replicating way in a quest for survival as our own human genes, so we’re instinctively programmed to believe and share. Confused? Well in the words of ‘Mother’: “Are you sitting comfortably? Then I’ll begin.”

Biological roots of the psychological and the fantastical Charles Darwin’s theory of natural selection gave way to the gene-centred view of evolution, hypothesising how fitter genetic replicators survive during competition, resulting in evolved physiological features and psychological traits perfectly suited to navigating our once hostile environment. Gregor Mendel demonstrated how such winning genetic traits can also be passed from one generation to the next via inheritance. Richard Dawkins further hypothesised that while genes use hosts like me and you to replicate themselves, we’re just the temporary puppets, throwaway survival machines, and it’s our genes that’ll continue to replicate and transmit themselves for generations. Dawkins argues that these mechanics of Darwinism are just too considerable to only explain biological evolution, and that there must be other replicators on Earth, just like genes, that transmit information in the same way. And there is: ideas.

Genes and memes Just as we are the hosts for genes, we are also the hosts for stories, ideas and beliefs. Just as genes replicate themselves to survive and spread and transmit themselves to the next generation, stories survive as we act to replicate and transmit ideas onto others. In the same way that biology transmits information via genes from one organism to another, culture allows for the transmission of stories, ideas and memes, from one organism to another. Survival of the fittest story is achieved when it’s absorbed, replicated and transferred to the next person through cultural evolution. They don’t need to be true; gossip, rumours and conspiracies transmit well too. They survive because they deliver messages that people want to hear. They’re psychologically

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appealing in their incredulousness, which makes them more infectious and more likely to transmit, not only from person to person, but from culture to culture and generation to generation. Technology usage within current society presents the perfect Petri dish for meme transmission: social connectivity. Accelerated use of social media creates the conditions for memes to spread. And remember, the fact that a meme can either be fact or fiction is irrelevant. It just must be shared to survive and evolve, and we’re instinctively programmed to do so. Peddling such misinformation through imitation has been shown to cause societal harm, evidenced recently by anti-vaxxers spreading scientifically false information that threatened to disrupt the Covid-19 immunisation programme. Sharing memes containing misinformation about the state of the climate or the factors causing global warming threatens to disrupt efforts to fix it, as a herd immunity is created that automatically assigns climate warnings as fake news. The difficulty lies in persuading a population to change its belief when the source of the persuasion itself comes from a government or corporation, the very entities who conspiracy theorists themselves are hardwired to disbelieve and doubt. Once you’ve been infected with the meme, absorbed it, and transmitted it to someone else, any social marketing message or scientific warning to encourage behavioural or believe change is futile in the face of a meme pandemic that attacks the rational mind. The truth is that climate change is a hoax if you

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believe it is. You’ve been exposed to the meme and now contribute to its survival. There may come a time when humans are faced with the incontrovertible truth that cannot be masked by belief. However, the power of the evolved mind demonstrates the uncanny ability to believe the invisible, rather than the observable reality. Belief in a monster living in a Scottish Highlands loch is easy, despite never seeing it. Belief in a dying world caused by overconsumption is hard, despite constantly seeing evidence of the effect. Just as the power of genetic transmission demonstrates survivability in adapting to environmental hostility, the power of memetic transmission demonstrates how the unbelievable becomes believable. Or, after reading this, you may believe that I’m just another cog in a meme machine peddling the climate conspiracy. Perhaps I have a wealthy unknown benefactor who’s forced me to write this article. Or perhaps the idea came to me after my recent Covid vaccination booster. All I can say is...REDACTED. Scan or click the QR code for more information on Dr AtkinsonToal and his research interests.

Sustainability

SustAInability: How A.I. can steal our jobs but save our planet Dr Chrysostomos Apostolidis, Associate Professor in Marketing, weighs up the sustainability-related promises of artificial intelligence (AI) with its societal impact.

“ The problem is not the problem. The problem is your attitude about the problem.” Captain Jack Sparrow, Pirates of the Caribbean

lmost a decade ago, the above quote from the infamous, quirky and swashbuckling Pirate of the Caribbean, was used to summarise my first thoughts on how digital transformation and sustainable development aren’t necessarily mutually exclusive – but we need to change our attitude towards how one can help us achieve the other. Although a lot has changed since then, recent developments have proven those words right. From the emergence of cryptos promising to democratise and decentralise financial systems, but currently being recognised as one of the main currencies to access drugs, illegal services and fund criminal and terrorist groups, to the metaverse preaching accessibility and empowerment opportunities for users, but eventually being criticised as a fruitful platform for money launderers and financial scammers.

More recently, AI technologies took centre stage in the 'technology for sustainability' discussions, with advocates of both sides, for and against, arguing the potential impact of AI on the sustainability of organisations, communities, and the society as a whole. AI sceptics associate the development and adoption of AI solutions with issues relating to technical challenges such as concerns about data privacy and bias in AI algorithms, but also managerial and social challenges like job displacement and unemployment due to automation. It’s true that for many years, we’ve been hearing about robots that might take over our jobs in the future. According to experts in the field, this time is now, as increasing adoption of AI is associated with an imminent threat of job displacement (more so in some industries than others). AI algorithms can be used to automate certain tasks and processes that are currently

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performed by human workers, such as data entry and processing, customer service, and automated decision-making. Although this can lead to improved productivity, efficiency and waste reduction for organisations, it can also reduce the need for human workers to perform these tasks, leading to job losses. According to various consultancy and investment giants such as PwC, Goldman Sachs and McKinsey, up to 30% of jobs in the UK could be affected by AI within the next two decades, and that’s based on the capabilities of the technology as we know it today! In the current climate of cost-of-living crises and soaring unemployment, particularly for loweducated workers, marginalised communities and disadvantaged young people, this can lead to a series of social issues including disempowerment, increasing inequalities and diminishing quality of life for large parts of our society.

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On the other hand, AI proponents argue that the ability of AI technologies to process vast amounts of data, and identify trends, insights and solutions quickly and accurately can be particularly valuable for sustainabilityrelated decisions, where data can be complex and extensive. Therefore, they can help the development of more sustainable solutions for complex problems, including more responsible resource allocation, waste reduction and efficiency optimisation. Furthermore, the use of predictive AI can help forecasting the environmental, social, and economic impacts of strategies and policies more accurately and objectively, as it’s not influenced by emotions, personal and professional biases, or political agendas. For example, AI can optimise energy usage in communities by predicting energy demand, identifying sources of waste and

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improving the efficiency of buildings and processes. More recently, discussions on how AI can support efforts to reduce social inequalities included its role in equal and inclusive access to education and healthcare and the potential to help local governments and organisations provide better support to vulnerable populations, such as disaster management, response and social services for at-risk individuals. This digital transformation conundrum leads to a series of pertinent (and to an extent philosophical) questions that’ll only become more pressing in the future. With the environmental ‘sword of Damocles’ hanging over our heads, can we really afford not to use such a powerful tool in our arsenal to avoid an imminent and irreversible environmental catastrophe? On the other hand, what’s the purpose of people fighting to create a better world, if they (and future generations) can’t afford to live in it? Increasingly, voices have been calling for more responsible development and adoption of AI, and regulations that’ll enable businesses, organisations and communities to harness the benefits of AI while mitigating its risks. This has been the focus of our research over the past decade, where we argue that despite the focus on the development of more ‘sustainable’ and ‘responsible’ digital tools and platforms, technology isn’t a cure-all for all sustainability illnesses. The same technologies that can be used to support more efficient and sustainable systems can lead to increased inequalities, job displacement and negatively affect social and environmental sustainability. Through our research, we advocate that a holistic and comprehensive approach to AI adoption is required to achieve the sustainability benefits we strive for. Currently however, organisations are predominantly preoccupied with the various ways that AI technologies can be incorporated in their operations to improve efficiency and reduce costs, but pay less attention on preparing themselves (and their employees) for this digital transformation, so they could make the most out of this powerful technology. In our studies, we move the discussion beyond the ‘traditional’ capabilities and resources view of technology adoption, and we ask one of the most pertinent questions around AI readiness, namely: Is your organisation ready to leverage your human resources and strategically introduce AI to increase the benefit it can offer to your organisation, your customers, your investors and society now and in the long term?

Through a series of studies, we developed and tested our 4S framework (Figure 1), a model taking into consideration internal and external drivers, stakeholders, resources and value to provide a guide for organisations striving to successfully adopt and implement technologies to improve social, environmental and economic sustainability.

Secure

Scrutinise

Streamline

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Figure 1 - The 4S model

We argue that a gradual shift of our existing attitudes towards AI is required, from “How can we fit AI in our operations?” to “How can we prepare ourselves to make the most out of AI?”. By following this process, organisations will find it easier to focus not only on the creation of short-term profit but also ‘sustainable value’ and realise the important role of employees in maximising the benefits that AI can offer to the organisation and sustainability. We also support that it’s the right time for policy makers and regulators to shift their focus to regulating for (instead of regulating against) AI developments. This will allow them to stay ahead of the technology development curve and prepare the environment for more meaningful adoption of such technologies when the opportunity arises, so mistakes of the past (see cryptocurrencies and metaverse) aren’t repeated again. Or in the words of Captain Jack:

“ If you were waiting for the opportune moment, that was it.” Scan or click the QR code for more information on Dr Apostolidis and his research interests.

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Gaming the system: how scenario exploration can change how we view the future John Hirst, Associate Professor in Management, and Assistant Professor Dr Cat Spellman share how an innovative learning tool can help build crucial skills in Futures Thinking.

n corporate responsibility and sustainability, leaders and globally renowned authorities like John Elkington have argued that universities need to start preparing students for the sweeping environmental and social change the planet currently faces. Hopes of achieving the internationally agreed United Nations Sustainable Development Goals (SDGs), aimed at transforming the socio-economic system to make it more equitable, inclusive, regenerative, and sustainable, are all but evaporating. We must now ask ourselves how to completely rethink the way we run our systems and societies.

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There are noticeable failures in our collective ability to imagine and anticipate the massive and disruptive changes that are unfolding. Arguably, this is attributable to our education system’s lack of guidelines for, or systematic approaches to, thinking about the future. To prepare incoming generations of business leaders for climate change and grasp its complexities, it’s crucial that business schools consider the potential of integrated ‘Futures Thinking’ skills within their curricula. Future-orientated pedagogies can support the development of a critical awareness of current and future global challenges through reflection and collective dialogue.

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Futures Thinking skills in Higher Education encourage students to contemplate multiple possibilities, explore potential scenarios, consider the impact of complex interconnected outcomes that different courses of action may have, and ultimately reflect on how they can contribute to creating more equitable and sustainable societies. Futures Thinking encourages teachers and students to become co-investigators as they critically evaluate their worldviews, creatively imagine alternatives, and discover ways to participate in transformative action. Acknowledging that anticipation is the form that the future takes in the present, Futures Thinking education includes the development of anticipatory competences. This involves the development of frames, narratives, and variables that shape imaginations, and necessitates emotional intelligence – since imagining the future can evoke hopes, fears, optimism, and uncertainty. For graduates to be able to contribute to a socially just future, it’s imperative for Higher Education to engage students in confronting both the injustices that the United Nations SDGs have yet to remedy but also the root causes of such justice failures. To date, there’s been limited progress in translating policy on future-orientated skills into action, with educators facing a multitude of barriers such as the lack of tools, methodologies, and guidance whilst also facing cultural resistance to unconventional, innovative teaching methods. Responding to the need for Futures Thinking skills amongst business school graduates, this year the School is partnering with the Academy of Business in Society (ABIS) to integrate an innovative learning tool into a final-year optional module. The Scenario Exploration System (SES) is a gaming platform developed for classroom use, having already been used successfully amongst policy makers as well as other universities. The SES will be used in interactive workshops throughout the module, involving immersive participation in several rounds of serious game-playing facilitated by trained games masters. The platform introduces a range of scenarios applicable to a series of future time periods, and the players assume roles which they then act out accordingly. Participants are immersed in several plausible alternative futures while repeatedly thinking, conversing, acting, and reflecting outside of their usual frames of reference. The SES facilitates the understanding of interplays between networks, hierarchies, organisations, and markets – learning to model them in new ways, initiate and manage change, monitor, and evaluate the impacts and adjust intentions and mindsets as necessary. The aim

of the SES isn’t to play a game and win. Rather, it’s to stimulate imagination in an environment of collaboration and respectful engagement to equip all participants with future-orientated skills to inspire and empower them to contribute to creating a more sustainable future for everyone. The ways that we think about change and view the future have a critical impact on the way we think and act in the present. The complex and uncertain state of the world we find ourselves facing, confronted with multiple crises and threats, means that the future is even more difficult to imagine, and even less possible to predict. The role of Futures Thinking education isn’t to predict the future but to create a learning environment that fosters adaptation and prepares students for future challenges in safeguarding and sustaining the planet. The integration of the SES in an undergraduate Business and Management module is an innovative means of employing learning activities that concurs with the UNs priority of "ensuring a future-oriented focus in education curricula and pedagogy". A more sustainable future for our planet requires a radical shift, beginning with progressive changes in mindset amongst our future leaders to nurture key competencies related to critical thinking, ethical decision-making, creativity, communication, and problem solving. The ‘Facing the Future’ module offers a collaborative, stimulating, and innovative learning environment in which students are challenged to develop their anticipatory competence. It also demonstrates how Futures Thinking can be incorporated into mainstream teaching and learning, providing a prototype not just for business schools but for the wider Higher Education sector.

A more sustainable future for our planet requires a radical shift, beginning with progressive changes in mindset amongst our future leaders.

Scan the QR code for more information on Associate Professor John Hirst and his research interests.

Scan or click the QR code more information on Dr Cat Spellman and her research interests.

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Fighting poverty: a win-win for Chinese listed firms and society Guanming He, Associate Professor in Accounting, Zhichao Li, PhD graduate and University of Exeter Lecturer in Finance and Accounting share their research on poverty alleviation by listed companies.

overty is a gnawing malaise of global communities, wreaking havoc on society and casting shadows of hunger, disease, and social unrest. The United Nations (UN), recognising the gravity of this issue, prioritises poverty eradication in its 2030 Agenda for sustainable development. As one of the permanent members of the UN Security Council, China is an uppermiddle income country, but grapples with nearly 200 million people eking out a living below the International Poverty Line as of 2020.

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To echo the UN’s clarion call for worldwide poverty eradication and to resolve its domestic problems, China stood in the spotlight and held the National Conference on Development-driven Poverty Alleviation in 2015. This conference emphasised corporate participation in poverty alleviation and decided to implement the 13th Five-Year Plan in 2016, with a goal to end extreme poverty nationwide. Later, in 2016, Shanghai and Shenzhen Stock Exchanges mandated all Chinese listed firms to disclose their poverty alleviation contributions in their annual reports.

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These policies pressure Chinese firms into engaging in poverty alleviation. Yet, these noble pursuits come with economic implications. The primary concern is the cost of financing. A firm’s cost of capital directly reflects investors’ perceptions of the firm’s risk and performance. Engaging in poverty alleviation is a double-edged sword. While it demands significant resources, potentially seen as a divergence from maximising shareholder value, it also elevates a company’s reputation and fosters trust among stakeholders. Detractors argue that resources diverted to poverty alleviation might not be optimally utilised, especially if driven by managerial whims rather than strategic vision. Historical studies indicate managers occasionally tap into corporate coffers for personal gains, such as enhancing their social stature. Such actions could potentially raise a firm’s risk profile, leading to an increase in the cost of capital. Conversely, there’s an undeniable upside. Unlike other corporate social responsibility practices, corporate poverty alleviation takes care of the poor, who have little influence on firm performance. Hence, it may involve little motivation for profit-seeking and can better reflect a firm’s empathy and compassion towards others, potentially bolstering corporate reputation. A revered corporate image not only fosters customer loyalty but also enhances creditworthiness towards suppliers. Furthermore, proactive contributions align firms favourably with government goals, opening doors to governmentcontrolled resources, such as land, tax benefits, and financial grants. Therefore, considering the economic pros and cons of engaging in poverty alleviation, its influence on the firm’s cost of capital can differ significantly based on how investors view the corporate risks and performance resulting from poverty alleviation. China’s unique financial environment, marked by a dominance of retail investors accounting for nearly 70% of daily stock trade volume, adds another layer of complexity. Retail investors,

with a more myopic view than Active corporate their institutional counterparts, participation in poverty might overlook the longalleviation seems term benefits that corporate more than just a poverty alleviation can bring to noble endeavour; the organisation. As the general it’s also an activity investors perception of benefits that will bring vis-à-vis costs of poverty alleviation clear benefits to a firm is ambiguous, how poverty for firms. alleviation affects the investors’ willingness to provide capital to the firm (and hence its cost of equity) remains an open question. Additionally, when considering debt financing, an alternative to equity, there are also unanswered questions. Poverty alleviation can strain cash and liquid assets in the short term, whereas it promises long-term stability, an aspect that lenders value, due to the potentially increased corporate reputation. It’s therefore unclear whether the lenders and underwriters would put more emphasis on the long-term stable cash inflows or the near-term cash outflows. So, the impact of poverty alleviation on the cost of debt for firms is another issue worth exploring. Our recent study on Chinese listed firms presents a compelling narrative that firms actively participating in poverty alleviation enjoy a decrease in both the cost of equity and the cost of debt. Interestingly, this mitigating effect on the cost of capital is more pronounced for non-state-owned firms, financially healthy firms, firms receiving more financial subsidies from local governments, and firms with larger advertising expenditure. Empirical evidence further suggests that the enhanced reputation and trust among stakeholders are the mechanisms through which corporate contributions to poverty alleviation reduce financing costs. These findings uncover significant insights that hold profound implications for businesses and investors alike – active corporate participation in poverty alleviation seems more than just a noble endeavour; it’s also an activity that will bring clear benefits for firms. With this in mind, companies are urged to intensify their poverty eradication endeavours, paving the way for more sustainable economic and societal growth. Yet noticeably, the benefits of engaging in poverty alleviation hinge on stakeholder recognition and support. Therefore, to amplify these benefits, it’s also imperative for governments and media outlets to champion the cause of poverty alleviation, emphasising its importance and rallying support. Scan or click the QR code for more information on Professor He and his research interests. Scan or click the QR code for more information on Dr Zhichao Li and her research interests.

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Our quadruple systems framework for sustainability Professor Kieran Fernandes, Associate ProVice-Chancellor (Research Development & Business Engagement) and Professor of Operations Management on our collaboration with businesses and governments for a more sustainable economy.

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urham University has ranked 53rd in the QS World University Rankings for Sustainability 2023. The rankings were based on two sections: Environmental Impact and Social Impact. This success has been a result of adopting a quadruple systems framework, where we collaborate with businesses and governments to develop leadership and solutions for a sustainable economy. As part of this framework, we’ve introduced a new Sustainability and Biodiversity Strategy to achieve net zero, protect and restore nature, and build an inclusive and resilient society. Our four faculties – Arts & Humanities, Social Sciences, Business, and Sciences – have developed the ability and skills of individuals and organisations to become leaders and created leading-edge collaborations to speed up the path towards a sustainable economy. Through our institutes such as Durham Energy Institute and Wolfson Institute of Health, we engage in interdisciplinary research to develop the evidence base for practical action.

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Our ethos is that universities, businesses, policy makers and society need to act together to create a human-centric ecosystem.

The rate and pace of change in global economic activity and its organisation are likely to accelerate further, with profound implications for operations, technology, and innovation systems. The key tensions in this new world are between individual–collective, national– global, and privacy–open systems access, where organisations are placing much greater premia on resource use and corporate social responsibility. As globalisation continues to grow, pressure on the world’s resources will lead to major configurational changes in operations, processes and supply networks, as well as in society itself. The international spread and increased dominance of business organisations have implications for systems of innovation, operations and growth. These systemic risks affect human survival, security, and prosperity. Our systems approach to tackling these global challenges ensures that all stakeholders play an important, complementary role in the development of solutions. By coordinating efforts with businesses, government, and society (hence ‘quadruple’), we’ve been developing effective and efficient knowledge transfer and co-creation mechanisms to engage all the other stakeholders. We’ve integrated our research and teaching activities to address these global sustainability challenges and developed leadership infrastructure, capabilities and solutions for individuals, organisations and multistakeholder platforms worldwide.

We’ve done this in several ways:

Leveraging our research foresight and influence to make a positive impact on practice. For example, our impact on policy and practice addressing the global problem of childhood obesity. Our research recommended that interventions should take a ‘whole systems approach’. These recommendations have been adopted as public health policy internationally (by the World Health Organisation), nationally and regionally (Ontario, Canada; Hunter New England and Victoria, Australia; North East England). Using these recommendations, two interventions (ToyBox, EPODE) were developed and tested by Summerbell. These have been translated and rolled out across the world (ToyBox, 17 countries; EPODE, 31 countries) and experienced by an estimated 20,000,000 European children and 70,000,000 children globally.

Increasing sustainability by helping businesses adopt cutting-edge technology. We’ve helped to develop an end-to-end banking model for Atom Bank that provides a live, interactive overview of the business with a strategic understanding of the relationships between the bank’s key components, including customers and products. This is unique within the sector and the change in practice has given Atom Bank the opportunity to update both the simulation and the optimisation in real-time as the bank evolves and grows, increasing sustainability and providing rigorous calculations that support the mortgage lending process by minimising the risk of operational damage or regulatory breaches from calculation error. All these benefits are passed on to the customers as savings.

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Impacting climate change policies and practice at a global level. Our research has directly shaped the conceptual development and practical application of UN-Habitat’s approach to urban climate governance, chiefly through the development of their Guiding Principles for City Climate Action Planning and associated toolkit. Endorsed by 45 of the key transnational organisations working to support urban action on climate change, the Guiding Principles represent a step change in the global policy arena by articulating for the first time the fundamental basis upon which cities should take action. As well as advancing the position of cities and climate change in the UN system and amongst partner organisations, the Guiding Principles have been used to develop and evaluate strategies at the city scale.

Enhancing resilience and public accountability at a local level. In the area of public sector audit and accountability, our research has significantly changed UK government thinking and policy making, which has in turn enhanced public accountability of local government spending. Our research and engagement with the public audit community has also translated into changes to the National Audit Office (NAO) Code of Audit Practice. The effect of the changes in government thinking, the Redmond review and the NAO Audit Code has radically improved the financial resilience of Local Authority spending and its efficacy for local populations.

Our ethos is that universities, businesses, policy makers and society need to act together to create a human-centric ecosystem where sustainability challenges can be addressed to bring about social, economic, political and environmental changes. The 17 Sustainable Development Goals, adopted by UN Member States in 2015, have provided us with a blueprint of how we can build a better and more sustainable future for all. At Durham, these 17 challenges are set within a local and global context where we’re working with our system partners to address the tensions of the individual against the collective; the regional against the global; privacy against open systems; and economic growth against zero carbon emissions. Adopting such a quadruple knowledge transfer and co-creation mechanism has allowed us to be a leading university in tackling global and local sustainability challenges, as evidenced by our recent QS rankings. Scan or click the QR code for more information on Professor Fernandes and his research interests.

Educating citizens using a holistic approach. Take our financial literacy research, which has enabled the introduction of several financial literacy programmes and set the policy direction on financial education for the first time in the Republic of Cyprus.

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Sustainable developments, reporting standards and setting a blueprint for the future Carol Adams, Professor of Accounting and Chair of the Global Sustainability Standards Board (GSSB) at Global Reporting Initiative, on why reporting on organisations’ impacts is crucial to achieve real change.

s the deadline for meeting climate pledges and reversing the consequences of climate change draws nearer, the pressure grows for organisations to make a positive contribution. To that end, there’s been a substantial amount of research into how frameworks, standards and other forms of reporting requirements can influence action aligned with sustainable development, by giving organisations a blueprint to follow. What they’re required to report on influences what gets attention and further action.

A focus on action The Global Reporting Initiative (GRI) Standards which began as guidelines 26 years ago provide the most well-established blueprint so far. Now overseen by GRI’s Global Sustainability Standards Board (GSSB), they have progressively incorporated more disclosures that facilitate a transformation towards integrating sustainable development considerations into governance, strategy and policies. They also facilitate accountability for the most significant impacts of their activities upon the economy, the environment, and people, including their human rights. The three recently revised GRI Universal Standards, which became effective this year, facilitate reporting on contribution to sustainable development. They require disclosures on the process for identifying an organisation’s most significant impacts, responsibility for managing those impacts, engagement with stakeholders, governance oversight, the scope of external assurance and the incorporation of sustainable development considerations into strategy and policy commitments, including remuneration. These are all known drivers of change. After

all, if you’re required to disclose something, you’re going to have to think about the issue and take appropriate action first. The GRI Standards offer guidance on the process of determining the organisation’s most significant impacts. The GRI Sector Standards set out the sustainable development context for different sectors, identify their most significant impacts and link them to the United Nations Sustainable Development Goals.

To achieve faster change, identifying and reporting on an organisation’s most significant impacts would need to be mandatory.

A focus on the consequences of impacts An organisation’s most significant impacts and the cumulative impacts of many organisations over time have implications for the availability of natural resources and the relationships on which organisations depend. The consequences present risks and create opportunities for organisations and their stakeholders, including investors. The most significant impacts can be fed into an organisation’s Enterprise Risk Management System to identify actual and potential risks and financial consequences. The identification and management of these most significant impacts therefore makes good business sense. Stakeholders have always played a powerful role in influencing corporate behaviour and investor returns. Think apartheid, Barclays and Shell; labour rights issues in the supply chain, Nike; marketing campaigns with negative impacts, Nestlé and so on. GRI was formed in the wake of the Exxon Valdez Alaskan oil spill, but this wasn’t the first corporate-created disaster and there’ve been many more since.

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What’s next? To achieve faster change, identifying and reporting on an organisation’s most significant impacts would need to be mandatory. The European Union has mandated the European Sustainability Reporting Standards that align with GRI Standards. The Securities and Exchange Board of India has also mandated aligned reporting. Mandated requirements alone aren’t enough. They need to be enforced and capacity building and training needs attention. Critically, the scope of external assurance engagements needs to be extended and particularly to cover the approach to identifying an organisation’s most significant impacts. Just as I encourage the finance and sustainability functions of organisations to collaborate, I urge financial regulators to talk with areas of government responsible for economic, social and environmental matters in developing a reporting regime that benefits nations in a holistic way. The GRI Standards provide a globally accepted starting point for such an approach.

Stakeholders have always played a powerful role in influencing corporate behaviour and investor returns.

Scan or click the QR code to download Carol Adams’ report, “Public Sector Sustainability Reporting: Time To Step It Up” via The Chartered Institute of Public Finance and Accountancy.

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The influence of proxy advisors and ESG rating agencies on companies and investors What really impacts the voting decisions of FTSE 350 companies? Professor Anna Tilba, Professor of Strategy and Governance, explains.

arlier this year, the results of our research into the influence of proxy advisors and Environmental, Social and Governance (ESG) agencies on the UK's top listed companies were published. This new research, undertaken in collaboration with Morrow Sodali, was commissioned by the Financial Reporting Council to shed light on the influence and impact of proxy voting advisors and ESG rating agencies on actions and reporting by FTSE 350 companies, as well as their effect on investors, including asset managers and asset owners. These advisors and agencies provide institutional investors with research, data, and ratings, as well as voting recommendations for companies’ annual general meetings (and other special meetings). The aim was to examine how investors’ stewardship and behaviour is affected by those recommendations and ratings. This includes understanding where, and in what circumstances, engagement takes place among companies, investors, and proxy advisors/ESG ratings agencies. As the academic lead for this project, we aimed to address critical questions surrounding the recommendations and ratings the advisors/agencies provided. The study delved into the resulting impact on FTSE 350 companies' behaviour, reporting, governance policies, and so-called 'tick box' behaviour. Additionally, it examined the engagement processes and outcomes over the past two years among FTSE 350 companies, investors, and proxy voting/ESG rating agencies. The research spanned from October 2022 to March 2023, during which we obtained and analysed survey responses, conducted interviews and roundtable discussions, and examined AGM resolutions and voting outcomes.

Our findings challenge conventional assumptions about the clear-cut and direct impact of the recommendations and ratings provided. While acknowledging the influence of these advisors/agencies on behaviour and voting decisions, the analysis reveals a more nuanced perspective, as observed from voting patterns and interviews with investors. For example, while Our findings challenge there’s some evidence of conventional correlation between negative assumptions about the voting recommendations and clear-cut and direct voting outcomes in FTSE 350 impact of the companies, it appears to be recommendations less extensive than is sometimes and ratings asserted. A vote of 20% or more provided. against a resolution relating to director elections or remuneration occurred in only half of cases where one or both of ISS and Glass Lewis had made such a recommendation in 2022, although this increased to 77% of cases when both did so. The study also aimed to reflect the diverse range of perspectives expressed by companies, investors, proxy advisors, and ESG rating agencies during the extensive research process. We found that while investors were generally satisfied with proxy advisory services, companies were less confident in proxy advisors’ quality of service. The research serves as a crucial contribution to ongoing dialogue and will inform discussions on governance policies, practices and engagement strategies. The Business School hosted the launch of this report on 10 July during the EFAG Sustainable Economy & Accounting for ESG Impact Symposium. Following its publication, the United Nations Principles for Responsible Investment is also now looking to examine proxy voting advisory practices. Scan or click the QR code for more information on Professor Tilba and her research interests.

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Financial technology and decentralised finance: to embrace or forsake Dr Wenjuan Ruan, Assistant Professor in Finance on what we can learn from China’s approach to a central bank digital currency.

inancial technology (FinTech) and decentralised finance (DeFi) have penetrated all areas of the financial system across the globe. A spectrum of financial products and services such as digital banking, cryptocurrencies, real-time payments, and crowdfunding have seen striking growth. For some, they’re a source of panic, for others they’ve improved financial freedom and inclusion. China has been one of the few countries where FinTech has developed rapidly in the past decade. However, right in the exponential growth of DeFi, the Chinese government slammed the brakes and successively banned a series of FinTech products and activities. For example, the initial coin offerings (ICO), Bitcoin mining and all private cryptocurrency-related transactions were consecutively prohibited by the Chinese government in September 2017, May 2021, and

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September 2021. Concurrently, in the belief that a Central Bank Digital Currency (CBDC) would enhance financial efficiency and decrease paper-cash related costs, China’s central bank, the People’s Bank of China (PBOC) launched a CBDC, which is dominated by e-CNY, the digital version of the fiat currency that the PBOC issued.

What is CBDC? CBDC is an electronic form of money that consumers and businesses hold with their country’s central bank, such as the Bank of England. Contrary to other legal tender issued by the central bank such as banknotes, CBDC is the digital form of a country’s fiat currency. CBDC is different to the deposits held with commercial banks, in that it could overcome the risk that the bank could collapse. While decentralised financial products such as cryptocurrency have no backup or stablecoins fully or partially backed by real assets, a CBDC is managed by a central authority and has the same security and government endorsement as cash. This means it can effectively protect customers and prevent them from being exposed to tremendous risks and price volatilities caused by DeFi products.

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Research has found that if banks have market power in the deposit market, a CBDC can enhance competition, raising the deposit rate, expanding intermediation, and increasing output. Therefore, it’s worth investigating if CBDC would be able to act as a role of supplementary for the tangible fiat currency.

China’s CBDC pilot China’s e-CNY was initially tested in four cities (Shenzhen, Suzhou, Xiong’an, and Chengdu) in April 2020. A few more cities subsequently joined the pilot, including Shanghai, Hainan, and Changsha. During the Beijing 2022 Winter Olympics, China successfully verified the demand and convenience of the e-CNY by offering visitors mobile apps, payment cards and wristbands. The convenience stores in the Olympic Village and small merchants near the stadiums were all equipped with e-CNY machines. Visitors could also exchange foreign currency into e-CNY at self-service machines. Arguably, China’s CBDC will likely promote the internationalisation of the Chinese currency (RMB), foster international trades and investments, and even change the international economic order.

CBDC in other countries Although China seems to be a pioneer in CBDC, the Bank of Finland, Finland’s central bank, launched a curious card called Avant in 1992. Avant cardholders were anonymous and didn’t need to have an account with the bank, but their money stored on the card was backed by the Bank of Finland and traceable through physical chips. The Avant cards discontinued after a few years of operation due to the disadvantages compared to credit cards. 30 years later, with the emergence of technologies, declining cash usage, the rise of cryptocurrencies and stablecoins, as well as accordingly generated rampant speculative investment, gambling fraud and money laundering, the world’s central banks have realised they need to find a way to avoid losing control of their financial system or let the future of money pass them by. At time of writing, 20 June 2023, 11 countries have fully launched a digital currency and 114 countries, representing over 95% of global GDP, are exploring a CBDC. In 2023, over 20 countries will take significant steps towards piloting a CBDC. Australia, Thailand, Brazil, India, South Korea and Russia intend to continue or begin pilot testing in 2023. The European Central Bank is also likely to start a pilot next year.

Together with the Treasury, the Bank of England launched a consultation on its assessment of the potential need for a digital pound and its design ideas in February 2023. The Economic Affairs Committee Report on CBDC debated on 2 February 2023 stated that “since bitcoin was called a coin instead of a token, lots of ordinary people lack understanding on the basic characteristics of this DeFi and its risks. As we saw from the FTX debacle, a lot of money can be swindled out of ordinary people. The sooner we get away from this digital nonsense, the better off we will be in terms of people’s welfare. We have enough problems with the unequal distribution of money and so on.” However, on 7 February 2023, Sir John Cunliffe, Deputy Governor of the Bank, made a speech that no firm decision can be made yet to implement a digital pound and it would take several years to plan and develop such an innovation.

A state-backed monetary system rather than a DeFi can enhance public confidence, protect investors and boost financial inclusion.

What we can learn from China Technology and innovation should be encouraged and monitored by the government to better serve the public. FinTech and financial innovation are particularly rooted in the monetary and financial spheres, inadequate regulation of the technologies and related innovations will cause greater harm to society since money is often the most sensitive interest of the public. The US subprime mortgage crisis is an example of social unrest caused by financial innovation. Perhaps China’s approach to DeFi can be used as a reference: when the government and regulatory authorities are still unable to fully monitor the underlying technologies and can’t grasp or predict their development, temporary suspension might be a way out. Instead, a statebacked monetary system rather than a DeFi can enhance public confidence, protect investors and boost financial inclusion. In the long run, such regulation or prohibition would in fact further drive innovations, rather than suppress them. Scan or click the QR code for more information on Dr Ruan and her research interests.

Research has found that if banks have market power in the deposit market, a CBDC can enhance competition.

Durham University Business School / IMPACT

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Professor Kevin Dowd, Professor of Finance and Economics, flies the flag for free banking.

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Issue 13 / 2024

BANK

o, what is free banking, I hear you ask? Hint: it’s not a contract with your bank in which your bank provides banking services for free. It’s much more interesting than that. A free banking system is a system of banking with no central bank, in which banks issue their own banknotes in competition against each other, and those banknotes are redeemable on demand against some precious metal such as gold or silver. I suspect most of you haven’t heard of it. I hadn’t heard of it myself until I was a PhD student studying monetary economics, when I stumbled across it one evening in the University of Toronto library poking around the monetary shelves, as one does. My immediate reaction was that it must be crazy, but after a few minutes’ thought I realised it was right. I was soon hooked. I tried it out on my PhD supervisor at Western Ontario, who is himself a famous student of the late great Milton Friedman. I won’t name him but let’s call him David. “I think I know where you monetarists have got it wrong,” I told him, not too modestly. “You want to tell the monopoly issuer of the monetary base [i.e. the central bank] what it should do, but you shouldn’t have such a monopoly in the first place!” David was dismissive: “It’s just a case of the monopoly of the monetary base,” he said. “Now be a good boy and finish your thesis,” he advised. His advice was wise, but I instantly knew he didn’t get free banking. I knew I was onto something! A few others came across the idea at about the same time, and a new ‘free banking’ movement was born. It was (and still is) a small movement, however. We could just about fit into a taxi. And we didn’t dare fly together, lest the entire movement be wiped out if the plane crashed.

The experience of free banking

Free banking wasn’t really new either. It turns out that there’d been big debates about it in the past, especially in the 19th century. And all over the world too. The free bankers lost the argument (or should I say – not that I’m partial – were deemed to have lost, history being written by the winners), and they and our movement were gradually forgotten. By the mid 20th century, all that remained in the collective folk memory of even the better American monetary and banking specialists was that free banking had somehow ‘failed’ because of the nefarious activities of ‘wildcat bankers’ who issued notes that could only be redeemed ‘where the wildcats roam’, and noone wanted to meet wildcats when they went to their bank. Free banking systems Then we rediscovered produced stable prices, free banking and gave it exhibited considerable a new breath of life. financial stability The new edition of The and bank failures Experience of Free Banking is a were rare. What’s collection of historical experiences not to like? or case studies of free banking, mostly 19th century ones, and there were at least 60 cases worldwide. There are chapters on free banking in Australia, Belgium, Canada, Chile, China (two chapters in fact, Foochow and Manchuria, and I know of others), Colombia, France, Ireland, Italy, Peru, Scotland, Sweden, Switzerland and the United States in the period from the mid 1830s to the outbreak of the Civil War in 1861. The United States ‘experience’ is actually a collection of different state-by-state banking experiments in its own right and ‘wildcat banks’ are notable by their almost complete absence. The Scottish case is poignant for me. As a kid growing up in Middlesbrough, I saw that Scottish bank notes were still highly regarded – a throwback to the old Scottish free banking system, although I had no idea at the time that it’d even existed.

Sustainability

These experiences show that historical free banking systems worked well – they produced stable prices, exhibited considerable financial stability and bank failures under free banking were rare. What’s not to like? The historical record also shows that free banking was much superior to the crisis- and inflation-prone systems of central banking that replaced them and performed so badly over the last century and more since. If free banking was superior, why did it end, you might ask? Easy: it was suppressed for a combination of ideological, political and most of all, fiscal (or government finance) reasons. You see, governments like to have a pet bank that can give them cheap loans or print money to hand over to them. That’s why most (but not all) countries now have central banks. If you want a policy conclusion, it’s this: let’s get rid of central banks and go back to a system that historical experience tells us works much better. But there is a ‘but’ – and it’s a big but too. At our height in the early 1990s, I recall being at a big monetary conference in Washington DC where a senior Federal Reserve official declared that “The free bankers have won the argument” and there wasn’t a murmur of protest. I was dumbfounded. We’d won, or so I thought. I started to wonder what I might turn to next. By this point even Milton Friedman was won over to the intellectual arguments for free banking. However, as he put it around 1993, when the British-American journalist Peter Brimelow asked him about my proposal to abolish central banking, Friedman responded that free banking was correct in theory, but was not politically realistic. He was right, unfortunately: we’re nowhere near to getting free banking into the Overton window – the range of politically acceptable policy recommendations.

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Scan or click the QR code for more information on Professor Dowd and his research interests.

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And that’s the problem. So, there you have it. A history of free banking from the side that lost the war but had the right arguments. But rest assured, we will be back – but I may not live long enough to see it. We have a banking system that we know works much better than the one we now have. We just need policy makers to be open to it, which might happen after the current system has collapsed entirely. There’s always hope. In the meantime, we can at least hold the flag to it. With that in mind, the book also has a literature guide for future generations of monetary and banking scholars who might be interested in getting into free banking – there’s still much to be done. The Institute of Economic Affairs will soon be publishing the second edition of The Experience of Free Banking, edited by Kevin Dowd. The first edition was published by Routledge in 1992.

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We have a banking system that we know works much better than the one we now have.

Durham University Business School / IMPACT

Sustainability

Pursuing green innovation strategies boosts firms’ competitiveness but not performance Private sector companies have the power to create new solutions tackling climate issues. But do they have the incentive? Dr Bettina Becker, Associate Professor in Strategy and Innovation shares her findings.

Issue 13 / 2024

n today’s business world, you’d have to look hard to find a business that doesn’t have ‘becoming greener’ as one of its key strategies. Most companies understand the need to innovate their own practices so they’re more environmentally friendly, and the responsibility to not only their customers, but wider society, to look for greener versions of their current products.

Sustainability

In fact, customers are increasingly concerned about the products and services they purchase being sustainable and environmentally friendly. Some would even refuse to buy from a specific company if they were deemed as having a detrimental environmental impact. While there’s clearly a want from customers and wider society for businesses to become greener, there’s also a need to. Governments typically aren’t equipped with the technology, availability or knowhow to produce new innovative solutions to environmental problems. Private sector companies are in a better position than governments to innovate and create new solutions tackling climate issues. Though many companies are in the position to innovate here, other than helping society, what incentives do they have to invest in tackling environmental issues in the light of the complexities, uncertainties, and costs surrounding green innovation? Businesses, of course, must earn some form of a profit in order to stay afloat – could pursuing green innovation strategies affect this? Is there a business incentive for a company to invest in green innovation strategies? That is what I looked into as part of a recent research paper. I studied a dataset of over 12,000 Spanish firms between 2008-2016, measuring two green innovation strategies that firms adopted over the nine-year period – a general green innovation strategy to reduce a firm’s environmental impact, and a green product innovation strategy to develop new green products – and matching these strategies to changes in firms’ performance, measured as turnover growth, employment growth, and labour productivity. I was particularly interested in reviewing the impact of the pursuit of these strategies both on the competitiveness of a firm within their current markets, and also the firms’ wider performance, understanding any potential impact on their productivity and growth. Firstly, the results show that the pursuit of either of the two green innovation strategies increases a firm’s innovation success – measured as an increase in turnover due to the launch

Market incentives may not be enough to entice firms to adopt important green innovation strategies.

of new-to-market products – compared with companies that don’t adopt a green innovation strategy, boosting their competitiveness as it allows them to enter new markets and build up ‘green’ capabilities. These firms see a 3-4% increase in turnover due to the launch of new-to-market products. Secondly, however, the study shows that adopting either of the two green innovation strategies doesn’t translate into a positive impact on firm performance in terms of turnover growth or employment growth. There’s also only a marginal positive effect on labour productivity for the general green innovation strategy, but not the green product innovation strategy, compared to firms that didn’t pursue either strategy. These results suggest that market incentives may not be enough to entice firms to adopt important green innovation strategies. So there’s a gap between the need for green innovation on the one hand, and the company reward for adopting related green innovation strategies on the other. This gap suggests that markets don’t sufficiently incentivise businesses to pursue green innovation strategies. Here, it’s important that policy makers look to fill this gap in terms of business incentives for investing in green innovation strategies, given it’s vital for the environment and society that businesses do so. Environmental and innovation policy intervention are critical to create the market incentives needed to encourage firms to invest in green innovation strategies. Specific policies should also offer direct stimulating support to enable successful green innovation. That way, firms would receive their financial incentive to invest in greener innovation strategies from the government rather than from the consumer. Firms developing green product innovation strategies may also be supported by the procurement of new green products by governments to stimulate demand. Rather than expecting that markets will provide ‘win-win’ situations, green industrial policy needs to shape markets and incentivise and support firms to increase their green production capabilities. This way, firms will be able to approach their full potential to capture green growth opportunities for the realisation of a sustainable economy.

It’s important that policy makers look to fill this gap in terms of business incentives for investing in green innovation strategies.

A dataset of

12,000 SPANISH FIRMS studied between 2008-2016

Click or scan the QR code for more information on Dr Becker’s research interests.

Durham University Business School / IMPACT

Sustainability

Sustainability and economic systems: contemporary propositions and approaches Professor Habib Ahmed, Sharjah Chair in Islamic Law and Finance, outlines the conflicting proposals on to how we can create a more sustainable economic system.

ealising the adverse impacts that capitalist modes of production have on the climate and environment, there are various suggestions proposed to move towards more sustainable economic systems. An obvious way to resolve the problem would be to provide solutions within the market-based framework. This perspective views the adverse impact of climate change as the “greatest market failure the world has ever seen” and suggests market-based solutions to mitigate the destructive impacts of market failures. Policy recommendations include “pricing of carbon, implemented through tax, trading or regulation”, supporting “innovation and the deployment of low-carbon technologies”, removing barriers to energy efficiency and “to inform, educate and persuade individuals about what they can do to respond to climate change”.

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One suggestion to deal with climate and environmental crises is to transform from ‘linear’ to ‘circular’ economies within the capitalist framework. The circular economic strategies have gained importance during recent times and are deemed as an effective approach to reduce greenhouse gas emissions, combat climate change and enhance sustainability. Circular economy is considered as “a regenerative system in which resource input and waste, emission, and energy leakage are minimised by slowing, closing, and narrowing material and energy loops”. The methods used in a circular economy include: rethink, refuse, reduce, reuse, repair, remanufacture, refurbish, repurpose, recycle, recover, eliminate waste and having long-lasting design. The approaches used in a circular economy essentially relate to changed business models and innovative technologies that transform the way in which products are made and used. The objective is to turn “goods that are at the end of their service life into resources for others, closing loops in industrial ecosystems and minimising waste”. While circular economy aims to protect the planet while ensuring economic prosperity, a key issue is that it attempts to

Sustainability

restructure the production processes and consumption patterns within the capitalist system that relies on the markets and profit seeking. Another approach to deal with the destructive impact of economic growth on environment is ‘eco-capitalism’ that calls for ‘degrowth’. The Degrowth Declaration Barcelona 2010 recognises that the current debt-fuelled growth that compels the economy to grow continuously to repay debt “will end in social disaster, passing on economic and ecological debts to future generations and to the poor”. Degrowth perspective argues that the Earth’s limited resources can’t sustain the unlimited growth implied in capitalist economic systems, and reverses the grow-ordie capitalist framework by voluntarily reducing the size of the GDP. However, it’s difficult to conceive how a capitalist economy can exist with economic contraction. Since profit-maximising corporations aren’t likely to voluntarily reduce their production levels and adversely impact their profits, one way to implement ‘ecocapitalism’ in a social democracy would be through regulations and fiscal measures. The ‘eco-socialists’ assert that degrowth isn’t possible under capitalist structures, as the system can’t survive without growth. Their radical view argues that the eco-capitalist degrowth perspectives fail to tackle the key features of capital and its accumulation. The eco-socialist camp contends that “degrowth requires the social appropriation of the main means of (re)production and democratic, participatory and ecological planning”. They maintain that “ensuring equitable wellbeing for all does not require economic growth but rather radically changing how we organise the economy and distribute social wealth”. Some eco-socialists, however, recognise that even socialist growth can’t be ecologically sustainable. One argument is that degrowth would need distinguishing between ‘use values’

and ‘exchange values.’ While The stakeholders model use values relate to real human integrates ethics in needs, exchange value is what’s economic decision counted in GDP and its growth. making and moves This perspective posits that from the narrow there’s enough to meet the needs goal of profitof everybody to lead a decent life maximisation. if the wealth is shared more evenly. Given the limitations of narrow, profit-seeking capitalism to address the challenges of global warming and environmental degradation, there are proposals of envisioning a new form of ‘stakeholder capitalism’. A key distinguishing feature of stakeholder capitalism is to go beyond maximising shareholders’ value and consider the interests of other stakeholders. The stakeholders include not only customers, employees, partners, the community and society, but also ecology and environment. Key features of stakeholder capitalism have been identified as purpose and profits; stakeholders and shareholders; business as a societal and market institution; people as fully human and economic; and combining business and ethics. The stakeholders model integrates ethics in economic decision making and moves from the narrow goal of profit-maximisation to incorporating triple objectives of profit, people and planet in production processes. Scan or click the QR code for more information on Professor Ahmed and his research interests.

Durham University Business School / IMPACT

Sustainability

Tackling a tidal wave of plastic pollution Professor Atanu Chaudhuri, Professor in Technology and Operations Management, on the SMEs finding smarter ways to solve the problem of plastic waste.

Issue 13 / 2024

lastic waste is one of the primary sources of pollution and biodiversity loss. The cleaning of rivers, oceans and cities of plastic waste has been attempted by many countries with varying degrees of success. The problem is such that, in February 2022 when world leaders gathered in Nairobi for the United Nations (UN) Environment Assembly, the main topic of conversation was tackling plastic pollution. The result of this meeting was a commitment to develop and commit to an international legally binding agreement to end plastic pollution by 2024 – covering plastic production, design and disposal.

Sustainability

According to the UN, more than 430 million tons of plastic are produced each year – two thirds of which is intended for just a single use. Much of this ends up being discarded in general waste, littered into our natural habitats and, increasingly, oceans. A recent blog on the UN website, sharing data from the Ocean Conservancy, estimates that eleven million metric tonnes of plastic enters our oceans every year, on top of approximately 200 million tonnes already flowing though marine environments. Indeed, the blog continues, if our world carries on with the current rate of plastic production, by 2050 there'll be more plastic than fish in the ocean. It’s clear there’s a significant need for change if we’re to sustain our world for generations to come. But the plastic problem is a tricky one. Cheap to produce, durable and endlessly versatile, plastic has become as much a staple of human life as clothing, eating and drinking (and, of course, plastic has become essential in each of these functions!). We can’t remove plastic from the world entirely. Instead, we need to find smarter, more responsible and, most importantly, actionable ways to reuse what we have and avoid it ending up in our woodlands and waterways.

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SMEs leading the way Despite commitments being made by world leaders and international collectives to tackle this issue, the ‘hows’ and ‘whens’ are near impossible to answer. Regardless of new laws, multinational pledges, and targets, there’s no one solution to eradicating plastic pollution. Collaboration

OF PLASTIC WASTE is recycled globally

is required. Furthermore, we shouldn’t only be looking to a higher power to show us the way. Research I’ve conducted in partnership with colleagues Nachiappan Subramanian (University of Sussex Business School) and Manoj Dora (Anglia Ruskin University, previously Brunel University) has shown that, rather than governments or multinational organisations making the most vital strides toward a cleaner world, increasingly, it’s the agility and capability of SMEs that are providing the most effective vehicles for change. SMEs often have an advantage over larger corporations or multinational bodies when it comes to breaking new ground. More idealistic leaders are hands-on, less affected by red tape and, often, more willing to take a chance on something new. Their ability to embrace new ideas, adopt new technologies and take risks can pave the way for effectively combating plastic pollution. Of course, it helps that many are also set up with the sole purpose of driving sustainability, rather than adding sustainability into their existing operations. Our research sought to better understand how start-ups working to remove and recycle used plastic from the world’s oceans made best use of technologies to make an impact, in an effort to share this best practice with others. Despite the difficulties that exist in simply recycling plastic waste (currently 9% is recycled globally), if sorted and graded successfully, much of it can have a second life – or third or fourth – reducing or even

If our world carries on with the current rate of plastic production, by 2050 there'll be more plastic than fish in the ocean.

Durham University Business School / IMPACT

removing the need for producing new plastic. This consistent process of reusing, recycling and reducing use forms part of what’s known as circular economy – it offers the best hope for reducing the need for new plastic production. It’s here our research identified that SMEs have the opportunity to make the biggest impact.

A technical advantage Through interviews with circular economybased SMEs operating within plastic recycling (Plastic Bank, Waste2Wear, Benthos Buttons in collaboration with Fishy Filaments, and Filamentive), our research identified and defined the capabilities and resources they displayed in a successful circular economy setting. From utilising new and emerging technologies such as 3D printing to produce innovative new products from recycled materials, to harnessing blockchain in order to gain a competitive advantage from circular economy-based business models, SMEs are proving that there’s a way to make profit, satisfy customers and save the planet. Crucially, we observed that SMEs utilising circular economy initiatives to great success held qualities such as adaptability and a desire for exploration at their heart. Firms need to be able to swiftly understand, embrace and exploit the capabilities of these technologies – a difficult skill for a CEO to harness, especially with a large, multinational brand to protect and multiple stakeholders to satisfy. But for managers seeking to switch to circular economy-based business

Issue 13 / 2024

model, it’s a necessary learning curve to master. Working to identify the skills and knowledge gaps within their teams – and within themselves – to be able to utilise new technologies effectively, and seeking further training is vital. Our interviews showed that the technologies are difficult to implement unless adequate attention is paid to supporting staff capability and demonstrating the technologies’ value to them. It also involves significant investment. Such technologies don’t come cheap, after all. The good news is that we’ve seen from multiple other research projects that these efforts pay off in the long run. Companies can indeed profit from investing in technology and sustainability. The bad news is that, sooner or later, both these new technologies and a credible focus to contributing to wider sustainability efforts will go from being a ‘nice to have’ to a mandatory requirement for all organisations – large or small. Those who don’t make the effort now to put their best foot forward will, undoubtedly, be left behind. And if that’s not enough motivation for managers, consider also that the very world is at stake.

Increasingly, it’s the agility and capability of SMEs that are providing the most effective vehicles for change.

Scan or click on the QR code to find out more about Professor Chaudhuri’s research interests, including links to papers such as the one this article is based on.

Sustainability

Could air pollution be affecting firms’ investment decisions? Associate Professor Guanming He, Professor in Accounting, on the unseen impact of pollution on profitability.

limate change is detrimentally affecting society – we’re seeing more and more natural disasters, increased extreme weather conditions and a reduction in biodiversity across the globe. These are, of course, extremely clear and visible consequences of the rising global temperatures, but there are more subtle, less visible impacts of climate change that can be just as, if not more detrimental to people’s health. Take air pollution, an often overlooked repercussion of climate change. We’ve all seen images of smog-filled cities in places like India, China, Pakistan and even the recent smog in New York caused by nearby wildfires. When it’s clear and visible in the sky, it seems obvious that it’s detrimental to our health. However, the air is incredibly polluted in most cities, and most of the time we can’t see this smog. Air pollution can cause a whole host of symptoms, whether it be linked to strokes, heart disease, lung cancer or, in the most extreme examples, death. In fact, the World Health Organisation (WHO) believes that air pollution is associated with 6.7 million premature deaths annually. That figure is even more concerning when the WHO also predicts that almost all

Air pollution adversely impacts managers’ mood, judgement, and decision-making on corporate investments.

the global population (99%) breathe air that exceeds their guideline limits and contains high levels of pollutants, with low- and middle-income countries suffering from the highest exposures. Clearly, this is affecting the climate as well as people’s health and livelihoods – it’s no surprise governments are bringing more policies in to tackle this. The recent expansion of the ULEZ zone in London is an example – a policy brought in purely to drastically reduce the negative impacts of air pollution. Though governments are looking to tackle this, businesses are often lagging behind, with CEOs lacking any motivation to tackle this climate issue. However, our latest research shows that CEOs may actually have a vested interest in improving air quality, as interestingly dangerous air pollution is having impacts on our business decisions, too. In my latest research paper, I and my colleague from Beijing Jiaotong University used data from the Air Quality Index – constructed and published by the Ministry of Environment Protection of China in 2014 – and compared recorded pollution levels to the financial, governance, and stock market data for 2,174 Chinese listed firms from 2014–2019, according to the Chinese Stock Market and Accounting Research Database. These firms were based over 230 cities in China. We found that the degrees of inefficient investments, over-investments, or under-investments by firms located in the worse polluted cities are, on average, 7.6%, 8.6%, and 5.5%, respectively, higher than those located in the less polluted cities.

Durham University Business School / IMPACT

We found that air pollution adversely impacts managers’ mood, judgement, and decisionmaking on corporate investments, and thereby reduces the investment efficiency of firms. As investment efficiency of a firm is lowered by air pollution, the firm might face shrinking profitability and deteriorating performance, losing their competitive advantage in the long term. Managers might also suffer, as their compensation and career prospects are often tied to the profitability and performance of their firms. So, how can firms counteract this detrimental air pollution, affecting their investments? Well, there are two ways firms can make their office spaces a healthier environment for employees. First is to improve the indoor air quality. For example, firms might use ecological and healthy ‘green’ building materials, air purifiers, houseplants or even adopt working from home practices to ensure managers and employees are breathing less polluted air. Secondly, firms may have investment decisions made in their branch offices, which have higher air quality. If moving locations for the decisionmaking isn’t possible, having investment decisions reviewed by the investment experts whose workplace isn’t in an air-polluted city is advised.

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Often, we see a lack of motivation for businesses to tackle climate change issues. Many firms understand it’s a societal issue that needs to be tackled, but either don’t believe it’s their responsibility to do so, or that because there’s not immediate impact on their firm, there’s no benefit for them to do so. However, this research shows that there’s an immediate impact from air pollution. There’s a very clear ROI to looking to reduce pollution in firms' cities. This air pollution is a very clear barrier to being as efficient as possible in important decision-making for firms, and they should look into ways to alleviate this. Not only for business decisions, but also for their employees’ health, reducing air pollution is an essential role to perform by firms looking to help tackle climate change and improve economic growth.

There’s a very clear ROI to looking to reduce pollution in firms' cities.

Scan or click the QR code for more information on Dr He and his research interests.

Engagement

MBA Strategic Consulting Project – Aligning GRI’s strategy with its values The School offers MBA students the opportunity to undertake a Strategic Consulting Project as part of the programme. We speak to MBA alumnus Abhi Sengupta about his project.

The project aimed to equip GRI with valuable recommendations to capitalise on and expand its licensing plans.

he Strategic Consulting Project forms the concluding part of the Full-time MBA and is very popular amongst the MBA cohort. Students conduct an in-depth investigation at an advanced level, looking at an issue or a business challenge. Working with a real company, they analyse and evaluate a strategic issue or challenge, explore concepts and apply the knowledge and skills they’ve acquired in the classroom. It also provides an excellent opportunity for students to gain experience relevant to their career aspirations and enhance their professional network. Full-time MBA alumnus, Abhi Sengupta, chose to work with the Global Reporting Initiative (GRI), an international independent standards organisation that helps businesses and governments understand and communicate

Durham University Business School / IMPACT

their impact on issues such as climate change, human rights, and corruption. With a growing emphasis on organisations becoming more transparent in how they communicate their impact on climate change, Abhi chose a project with GRI as they're one of the most credible and recognised organisations providing sustainability standards globally. Abhi shares his story of working with GRI below.

What were the project outcomes?

Can you please provide an overview of your Consulting Project?

What did you learn from doing your Consulting Project?

The project analysed GRI's licensing plans and proposed a strategy to monetise them effectively. By 2025, the goal is to develop a paid licensing policy to optimise GRI's revenue generation. The research evaluated competitor products, market positioning, and suitable business models. GRI's reputation, brand image, internal capacity, and business processes were assessed to ensure the successful implementation of the commercialisation plan. Potential risks and liabilities associated with the licensing scheme were also critically examined. The project aimed to equip GRI with valuable recommendations to capitalise on and expand its licensing plans. By creating a comprehensive strategy, proposing a paid licensing policy, and addressing key research questions, GRI could position itself as a leading player in sustainability reporting and maximise revenues. If it focused on revenue maximisation and strategic customer targeting, GRI could align its licensing approach with its mission and values, promoting sustainable development worldwide.

I learned a lot about what GRI is doing in the ESG space, its challenges, and its competition. I saw how its aims and objectives are important in providing and encouraging different stakeholders to absorb sustainable ESG standards to make the world a better place. I also learned the importance of exploring commercialisation and revenue generation to meet the longterm goals of a not-for-profit organisation. The learning and research I did for this project will remain with me in my future roles. The importance of ESG standards and the impact assessment for companies on the environment is something that we as managers must be very conscious of and do our bit to make a difference through our actions. The revenue generation models developed and suggested to GRI is something that I can replicate for similar companies in the roles that I embark upon.

Pursuing an MBA from a reputable business school like Durham is a transformative experience.

Why did you choose to do your Consulting Project with GRI? As most of its products, including the downloading of its standards, are free of charge, I wanted to support GRI in exploring the areas where it can grow its revenue by providing feasible and practical solutions. To meet long-term sustainability and spread its mission for the adoption of Environmental, Social and Corporate Governance (ESG) standards by companies and other stakeholders, GRI needs to find avenues through which it can effectively monetise its products to fund its long-term and short-term goals.

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After a series of interviews with the company and other stakeholders, as well as exhaustive desk research and competitor analysis, I suggested about ten recommendations that would benefit GRI and provided them with appropriate financial models they can implement to commercialise their existing and new products to reach newer customer segments and generate higher revenue. GRI was very happy with the recommendations and suggested they could look at some of them in the coming year or two.

Finally, what did you gain from your MBA at Durham? Pursuing an MBA from a reputable business school like Durham is a transformative experience. This programme is known for its academic excellence and global recognition and will benefit me with enhanced career opportunities, higher earning potential and increased access to a global business network. The cohort’s rich cultural diversity and multinational participants provided a unique and enriching learning experience. Overall, I consider an MBA from Durham a valuable investment in my professional growth and career advancement. Scan or click the QR code to learn more about the Durham MBA.

Engagement

Moral preferences, green consumerism and optimal commodity taxation Lucy Naga, doctoral researcher in Economics, shares her research into individual morality and sustainability as part of her PhD.

very day we’re presented with the decision of whether to be environmentally sustainable: choosing how to travel to work, whether to pack our reusable coffee cup, recycle our waste or pay more for sustainable food alternatives. Each of these decisions requires a trade-off; to invest extra effort to walk or cycle, to invest extra time to find and clean the reusable cup, to invest extra money to buy sustainable food alternatives. When the environmental benefit of these actions is negligible and has no observable impact on our own wellbeing, conventional economic theory of the self-interested, independent, utilitymaximising ‘homo economicus’ prescribes unsustainable behaviour. Why incur additional costs with no compensatory economic benefit?

However, many readers will have motivations for why they choose to be environmentally friendly. These motivations are often related to the knowledge that if everyone were to be environmentally friendly, the collective impact would be significant. You want to do your bit, you want to do the right thing, you want others to see you as responsible, and you feel good about yourself for being responsible.

Human morality is a strength which policy shouldn’t ignore.

In my work, I enrich the traditionally narrow conception of the ‘homo economicus’ by drawing on Kantian moral philosophy to model interdependent economic agents who seek to do the right thing. Kant’s categorical imperative states that one should:

“ Act only according to that maxim whereby you can, at the same time, will that it should become a universal law.” (Kant, 1785, 4:421 as in Koorsgaard 2012, p34)

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This can be interpreted as setting out a logical relation that an individual should only engage in a behaviour if they can consistently wish that all others do the same thing if they were in a similar situation. Kantian morality has been employed within the context of economics to explain why people voluntarily contribute to public goods (Laffont, 1975; Roemer, 2010), and may be employed whenever consumption behaviour exhibits externalities, whereby an individual’s behaviour affects the wellbeing of third parties. Within my PhD, I’ve worked with my supervisors, Professor Laura Masiliani and Dr Thomas Renström to introduce Kantian moral consumers into an optimal commodity taxation model to investigate how morality influences optimal policy approaches. We model green consumers who optimise their consumption of a ‘dirty’ good (dirty in the sense of having negative environmental consequences), a clean good, and leisure. When the green consumers optimise their consumption of the dirty good, rather than holding the behaviour of all other agents constant and maximising their own utility, as the homo economicus does, they seek the ‘right’ consumption bundle by considering the Kantian counterfactual of all agents behaving similarly. So, if they consider increasing their own consumption, they weigh up the benefit of this additional private consumption against the cost of higher aggregate environmental damages from everyone else also increasing their consumption. We find that within a society of homogeneous agents, perfect morality is enough to internalise environmental externalities, achieve the social optimum and promote environmental sustainability. However, when agents are heterogeneous in terms of their preferences, their income, and the damage they experience from environmental externalities, then morality isn’t enough to achieve the social optimum – a degree of external policy intervention is necessary. This is because when agents are heterogeneous, what’s perceived as the ‘right’ action for an individual will differ from what’s best for society. Therefore, moral agents who derive higher satisfaction from dirty goods will still overconsume them to some extent. This worsens if these individuals have higher incomes or suffer lower environmental damages.

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Conventional economic theory of the self-interested, independent, utility-maximising ‘homo economicus’ prescribes unsustainable behaviour.

To optimally design and target such policy intervention, it’s crucial to understand moral motivations and the structure of agent heterogeneity, which is what I’m now focusing on. Human morality is a strength which policy shouldn’t ignore. How can human morality be used to promote sustainability? For more information, you’re welcome to contact me at: lucy.v.hyde@durham.ac.uk Lucy specialises in employing behavioural economics to model consumer behaviour, investigating how policies should be designed to promote green consumerism. Previously, she worked as an economic analyst in the Department for Work and Pensions in the UK government. She received her undergraduate degree in Philosophy, Politics, and Economics from the University of Oxford in 2019 before completing a Master’s in Development Economics at the University of Sussex. In 2020, she was awarded the University of Sussex Economics Prize for her dissertation on how intercultural interactions shaped development in Mauritius. Scan or click the QR code for more information on PhDs.

Engagement

Searching for solutions to fund Africa’s transition and adaptation

ccess to reliable and affordable energy is an important driver of national economic prosperity. The abundance of non-renewable energy sources in the form of coal, oil and natural gas, coupled with rapid population growth since the industrial revolution have created a dependency on these natural resources that isn’t sustainable. Although abundant in nature, coal, oil and gas are depleting resources, and more importantly, the causal relationship between greenhouse gases (GHG) emitted when processing these products to produce energy and climate change has been scientifically established. The need for more greener sources of energy to power more sustainable and inclusive economic growth has never been more pressing. By all accounts the green transition has gathered encouraging momentum, albeit somewhat delayed given the magnitude of the disaster facing humanity if the pace of progress isn’t accelerated. It’s not just about clean and affordable energy though. The United Nations Sustainable Development Goals (SDGs) incorporate a comprehensive and integrated set of priority actions that are necessary to achieve development that strikes an appropriate balance between social, economic and environmental sustainability.

Katlego Mogoba, doctoral candidate on the Global DBA: Durham-emlyon, on why the Business School was the right place for his research into sustainability challenges for developing economies.

Having been involved in my The need for more career in the extractive and greener sources of financial services industries energy to power more on the African continent, the sustainable and significance of attaining the SDGs inclusive economic isn’t lost on me. While some may growth has never argue that signs of developmental been more progress are evident, the reality pressing. is that the continent faces a steep battle if it’s to make significant strides in alleviating socioeconomic challenges and significantly increasing the proportion of its population that lives above the breadline. Its rich non-renewable energy resource endowment is no longer considered to be an asset it can leverage as the global economic model transitions from brown to green. For Africa to thrive in a green economy paradigm, it’ll have to get two things right. The first is to transition to green energy to power its economic growth, and secondly, it’ll need to adapt to the adverse effects of GHGinduced climate change. Both these actions require substantial funding. Estimates vary, but the cost of funding Africa’s climate transition and adaptation runs into trillions of dollars. The urgency to secure this funding has been brought into sharp relief by the increased frequency of severe weather events and natural disasters, mainly in the form of droughts and flooding which have taken place in the past five years. These events have hampered agricultural production, important for sustaining the continent’s population which is expected

Durham University Business School / IMPACT

to continue to grow substantially. It’s widely acknowledged that while a small contributor to GHG emissions (at only 4% of globally), Africa is the most vulnerable continent to the physical manifestations of climate change. Its weak economies mean that it’s at a major disadvantage relative to the global north to fund adaptation and resilience efforts and initiatives. It's this reality that compelled me to commit to pursuing academic research to explore possible solutions to solving this funding challenge facing the continent. Given my professional background, I wanted a course that would strike an appropriate balance between academic rigor and practical relevance. After much research, I was glad to be accepted onto the Global DBA: Durham-emlyon programme. Among several positive attributes, I was particularly attracted to the Business School’s accreditation by AACSB, AMBA and EFMD/EQUIS. When I started the programme, I was very clear on the research topic I wanted to pursue, investigating how the mainstreaming of green finance can help bridge the significant gap to fund Africa’s green transition and climate adaptation. Although this remains the general research area I intend to pursue, the exposure I’ve had to excellent academic staff and modules has opened a number of possible avenues in the sustainability space that I can focus my research on. The ultimate objective is to undertake a meaningful and impactful study that’ll deliver real and practical solutions to the sustainability challenges facing developing economies, and

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Africa in particular. I’ve come to realise in this early phase of my doctoral studies that this is something of a journey, and I need to keep an open mind to challenges (which are really opportunities in disguise) along the way, as these will direct me to the area of focus that’ll deliver the most impactful contribution to theory and practice. It’s important to ensure that developing economies, and the African continent in particular, aren't left behind as the world transitions to a new sustainable, green and inclusive global economy. Scan or click the QR code for more information on the Global DBA: Durham-emlyon.

The cost of funding Africa’s climate transition and adaptation runs into trillions of dollars.

Engagement

Darlington Economic Campus – a growing relationship

he Business School and wider University has been engaging closely with Darlington Economic Campus (DEC), a multi-department government hub in the North East of England, located just 20 miles from Durham. DEC is rapidly establishing itself as the UK Civil Service’s flagship office outside of London, and has been described by Chancellor of the Exchequer, Jeremy Hunt, as moving “decision makers and advisers closer to the communities we serve”. With plans to significantly increase the number of civil servants across the nine government departments already in Darlington, there are appealing opportunities for our research centres as well as a compelling offer for our students and graduates. Following a number of joint activities and events, including the flagship UK State of the Competition workshop which took place at the Business School, the University signed a Memorandum of Understanding with the Competition and Markets Authority (CMA) on 27 July 2023. The partnership with the Department of Economics and Durham Research in Economic Analysis and Mechanisms research centre will provide expertise to support the Microeconomics Unit within the CMA. Focusing on industrial organisation, regulatory initiatives and consumer behaviour in markets, the partnership will be the driver for a range of activities including research collaboration and knowledge sharing, while also strengthening the ability to address real-world challenges and make a positive impact on society. A key aspect of this partnership is the shared commitment to nurturing talent and diversifying the economics profession with the opportunity to explore various avenues to develop a pipeline of talented economists and promote career pathways within the North East of England and beyond. Vice-Chancellor, Professor Karen O’Brien said: “This new, strategic partnership with the Competition and Markets Authority harnesses our respective portfolios of expertise on pioneering economic research to address real-world challenges.

This will ensure Durham University continues to support the economic development of North East England through evolving critical knowledge and skills.” Sarah Cardell, Chief Executive of the CMA, said: “We are delighted to partner with Durham University to further strengthen the Microeconomics Unit – bolstering research into competition, innovation and growth that will inform policy making that benefits people, businesses and the economy.” As part of the wider engagement with DEC, the School was delighted to provide economic expertise for an HM The partnership will be Treasury Fiscal Group event the driver for a range held on 27 September 2023 of activities including at the DEC. Professors Tatiana research collaboration Damjanovic and Stavros Zenios, and knowledge along with Dr Leslie Reinhorn, sharing. joined Dr Paulo Santos Monteiro (University of York) in a panel discussion chaired by Ruth Curtice, Deputy Director, Fiscal Group, HM Treasury. The discussion focused on the priorities for UK macroeconomic policy making, in particular fiscal policy (fiscal rules, risks, stance and interactions with monetary policy). Around 20 students from the School’s MBA and MSc Economics programmes also joined the event, gaining a fascinating insight into policy making and areas of focus for HM Treasury. MBA candidate Suraj Sharma commented on the event, “I found the session on UK macroeconomic policy and fiscal priorities incredibly insightful. It unveiled the nuances of modern challenges and prospects, offering a wealth of wisdom to inform our strategic policy choices. The discussion was engaging and a beneficial experience as a student pursuing MBA.”

Vice Chancellor Karen O'Brien and Dr Mike Walker signing the Memorandum of Understanding.

Scan or click the QR code for more information on the Business School’s partnerships.

Durham University Business School / IMPACT

News and events

Competition and Markets Authority Workshop trade and aggregate market power’ with lead contributions by Alejandro Graziano (University of Nottingham) and Elodie Andrieu (King’s College London); ‘Market power and workers’ delivered by Jian Tong (University of Southampton) and Aseem Patel (University of Essex); and ‘Firm entry and growth’ with lead contributions from Tatiana Damjanovic (the Business School) and Has Van Vlokhoven (Tilburg University). Day two also included a panel discussion chaired by Rebecca Riley (King’s College London) on ‘Policies for a dynamic economy’, with the thoughts of Mike Walker (Competition and Markets Authority), Sumit Dey-Chowdhury (Office for National Statistics) and Scott Richards (Department for Business and Trade). The successful event was then closed by the final keynote address from Sara Calligaris (Directorate for Science, Technology and Innovation, Organisation of Economic Cooperation and Development (OECD)) titled ‘Measuring competition through different proxies: some OECD evidence’. Director of DREAM, Professor Spyros Galanis said, “We had a great list of speakers and there was significant interaction and discussions between academics and policy makers from the Competition and Markets Authority, the Office for National Statistics, and the Department for Business and Trade. We plan to repeat the workshop next year and to deepen the cooperation between the CMA, the Department of Economics, and the DREAM research centre.”

s part of the new Memorandum of Understanding with the UK’s Competition and Markets Authority (CMA), based at the government’s Darlington Economic Campus, the School delivered a two-day workshop examining Innovation, Business Dynamism and Market Power on 6 and 7 November 2023. The event was hosted by the Durham Research in Economic Analysis and Mechanisms (DREAM) research centre and was opened with remarks from Professor Kieran Fernandes, Associate Pro-Vice Chancellor, Mike Walker, Chief Economic Advisor with the CMA, and Professor Spyros Galanis, Director of DREAM.

International experts The event brought together an expert range of UK and international contributions with 65 people attending in person and 17 joining online. Day one focused on ‘What drives innovation?’, with input from John Moffat (the Business School) and Seula Kim (Princeton University) and the ‘Decline of Business Dynamism’ with contributions from Javier Miranda (Halle Institute for Economic Research), Russell Black (UK Office for National Statistics) and Lorenza Rossi (Lancaster University). The day concluded with a keynote address by Jan De Loecker (Professor of Economics and Research Professor (KU Leuven), and Research Fellow, Centre for Economic Policy Research), titled ‘Estimating markups combining production and demand data’.

Scan or click the QR code for more information on Durham Research in Economic Analysis and Mechanisms.

Professor Spyros Galanis addressing workshop attendees.

Market power and policy considerations Day two considered ‘Aggregate market power and competition policy’, addressed by Maryam Vaziri (International Monetary Fund) and Arina Nikandrova (City, University of London); ‘Firms,

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News and events

Recognition round-up We review the latest accreditations and rankings since the last issue. Teaching excellence continues to be illustrated in our global positions and sustainability also proves to be a key theme.

IN THE UK

4 10 th

IN EUROPE

and amongst the top

GLOBALLY

Durham MBA in global top 10 for sustainability The School has been recognised as a global leader for its commitment and focus on sustainability teaching and practice, being placed 2nd in the UK, 4th in Europe and amongst the top 10 globally in this year’s Corporate Knights Better World MBA ranking. This ranking specifically focuses on and evaluates the extent to which MBA programmes integrate sustainability knowledge and skills into business education. The information gathered to rank 209 business schools across the globe includes the proportion of core modules which integrate relevant sustainable development themes, as well as the proportion of recent alumni working for ‘impact’ organisations (non-profits, CK Global 100 companies, CK Clean 200 companies, and companies primarily focused on delivering solutions to social/environmental problems). The School has a long association with both Corporate Social Responsibility (CSR) and Ethics, Responsibility and Sustainability (ERS), ensuring that both are integrated into all levels of our teaching as well as being the focus for excellent and impactful research. Examples of this are featured in previous issues of IMPACT magazine and our IMPACT Hub.

This is the third time in the last five years that we’ve been in Corporate Knights' global top 10, a standing reinforced by a top 20 Financial Times global ranking for ESG teaching in each of those five years. The Durham MBA (Full-Time) programme includes a dedicated module on Sustainability and Ethics, and weaves such focuses into each area of the curriculum and students’ chosen specialisation pathways – ensuring they become an integral part of business practice. Programme Director, Dr David Johnson, said, “We’re delighted with this achievement! Within our Full-Time MBA Programme, our commitment remains focused on empowering students to actively contribute to a more equitable and sustainable world. Across our entire MBA Programme, we embed ethics, responsibility, and sustainability to foster a community committed to making a positive global impact.” The programme aims to provide a stimulating, challenging and transformative learning environment to build the capabilities of our graduates. It also provides challenging and leading-edge knowledge in global trends such as technology, economics, demographics and the environment, and the impact of such trends on stakeholders in organisations. Mike Anthonisz, Associate Dean for MBA Programmes, added, “I’m thrilled with the recognition the Corporate Knights ranking affords to the continuing efforts in the development of the MBA programme over the last 12 months. The ranking vindicates the value placed on social responsibility, ethics and sustainability as key components for business thought and practices here at Durham. These are perhaps best evidenced through the integration of CSR and ERS across all components of our MBA programmes, supported by both research and delivery, and championed by our graduates in the workplace.”

Mike Anthonisz, Associate Dean for MBA Programmes.

Durham University Business School / IMPACT

Re-accreditation by Association of MBAs upholds triple-crown accreditation Our MBA programme has been re-accredited by the Association of MBAs (AMBA), confirming our place as a top global business school, committed to excellence in business and management education. The re-accreditation, which will last for five years, continues the School’s triplecrown accredited status, which also includes accreditations from EQUIS and AACSB, making it one of only 100 elite business schools globally to hold all three accreditations. For Executive Dean Professor Cathy Cassell, this re-accreditation showcases the School’s excellent standard of teaching of business education, our rigorous research practices, and high-calibre programmes which demonstrate our high standards of teaching, curriculum, and student interaction. Professor Cathy Cassell says, “I am delighted that our MBA has achieved another fiveyear accreditation. This is testimony to our position as a leading international business school, with excellence across our key strategic areas of research and impact, education and student experience. It is particularly pleasing that the panel commended the School on the excellence of our scholarly research and the profile and contribution of our 12 research centres, combined with the practice-based nature of the MBA programmes illustrated by our Professors in Practice Initiative and the valuable learning experience provided by the boardroom exercise.” Members of the accreditation panel, representing senior management from globally accredited business schools, specifically commended the appointment of Professors of Practice across the School and the wider University. The panel stated that such appointments underpinned the relevance and practice-based nature of the MBA programme. The panel also noted the development of the enthusiastic and committed leadership of the School, and their dedication to the MBA programme and student success. Andrew Main Wilson, Chief Executive of the Association of MBAs and Business Graduates Association, said: “Congratulations to Durham University Business School for this re-accreditation. The panel was very impressed at the research profile and contribution of the school. I look forward to working closely with the School in the future.” AMBA accreditation is international in scope and reach, and students can be sure its accreditation process reflects a commitment

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to fostering innovation, and demanding business schools to perform at the highest level continually. Continuing accreditation means all current MBA candidates and recent MBA alumni of the School can join AMBA’s global member community of more than 60,000 students and alumni on a free basis, to benefit from networking, thought leadership, and career development. Scan or click the QR code for more information on MBA programmes.

Top 5 UK business school for Masters in Management The Financial Times Masters in Management (MiM) ranking, published in September 2023, sees the School cement its position as one of the top providers of the highly regarded MiM programme. Alongside finishing =5th in the UK, we made the biggest jump of all UK business schools, progressing from 87th in 2022, to =78th best MiM programme globally in 2023.

Ranking highlights The School also ranked highly for gender balance, ranking 1st in the UK and 13th globally, with 51% of the class being female. In addition, we finished 8th in Europe for career progression, calculating the change in level of seniority of graduates’ job roles. These results showcase the increasing quality of our MiM programme, as well as the strong student satisfaction and career outcomes from studying at the School. Professor Cathy Cassell, Executive Dean says, “The Business School’s MSc programmes are all taught and delivered by world-class faculty, whose leading research underpins the learning experienced by our students. One-year, full-time programmes like the Masters in Management give students the opportunity to develop and enhance practical skills that employers are looking for. It is no surprise that the Durham Masters in Management, alongside our other programmes, consistently ranks highly for both reputation and quality, in independent assessments such as this Financial Times Masters in Management Ranking.” MiM Programme Director, Saadat Saeed, added, “The Durham Masters in Management programme embraces a dynamic, skill-oriented curriculum, complemented by international study opportunities and unwavering career guidance. This powerful combination empowers students to excel in today's rapidly changing business environment and has kept the programme at the forefront within this highly competitive marketplace.”

IN THE UK

IN THE UK and

GLOBALLY for gender balance

IN EUROPE

for career progression

News and events

About the ranking The Financial Times Masters in Management Ranking is a rank of the top 100 MiM programmes globally, using metrics such as the career progress of the programme’s alumnus, satisfaction of students, the value for money of the programme, as well as other metrics such as the percentage of female professors and students, the internationality of the cohort and the expertise of the faculty teaching. Scan or click the QR code for more information on the MSc Management.

GLOBALLY

QS World and Subject Rankings – Top 30 for Sustainability

up 14 places

108

GLOBALLY

for the impacts of our International Research Network

The Business School is an integral part of a worldleading university, and our academic excellence and impact is reflected in our global rankings. The University’s status as a globally outstanding centre of teaching and research excellence has been affirmed once again in the QS World University Rankings 2024, being ranked 78th in the world. The rankings, which assessed 2,963 universities, sees Durham move up 14 places on last year, with notable successes in the new indicators of Sustainability and International Research Network. Our top performance came in the new Sustainability category, being ranked joint 30th in the world. This area evaluates the social and environmental impact of universities as centres of education and research and is taken from the analysis of the QS Sustainability Rankings. The richness and diversity of our international research partnerships was also acknowledged, being ranked 108th in the world for the impacts of our International Research Network. The University also enhanced its already strong performances in the areas of Employer Reputation and Academic Reputation, being ranked 50th and 124th respectively and both up on the prior year. Together, these cement Durham’s global reputation with employers and for its excellence in research.

QS Senior Vice President, Ben Sowter, said: “This year, Durham University propels itself further into the world’s top 100. Its burgeoning reputation among international academics and employers alike has been instrumental in this success, particularly the latter, in which its exceptional performance showcases the exemplary upskilling and work readiness that it instils in its graduates. “Additionally, Durham’s commitment to sustainable development goals is evident in both its management structure and curriculum, as demonstrated by its outstanding performance in QS’ new Sustainability indicator. Notably, Durham ranks among the top 30 universities globally for this metric and within the top 10 in the UK, spotlighting its dedication to fostering a better future for its students and society more broadly.” The QS World Subject Rankings, released in October 2023, show that the School’s masters programmes remain strong in the competitive global environment with MSc Supply Chain management ranking 22nd, MSc Marketing 32nd, Masters in Management ranking joint 51st, and MSc Finance ranking 66th globally. Click or scan the QR code for more information on our rankings and accreditations.

Durham University Business School / IMPACT

News and events

Equipping our future leaders for a sustainable future

limate change, driven primarily by the surge in greenhouse gas emissions from human activities, has manifested in various detrimental ways that touch nearly every facet of our lives. We may witness the loss of several island nations in the coming years, leading to an increase in climate refugees. This growing concern has intensified the global demand for a net zero objective, in solidarity with the United Nations Sustainable Development Goals (SDGs), and in particular Goal 13, which emphasises ‘Climate Action’, calling for immediate actions to address climate change and its consequences. As the global community pivots towards a net zero future, we’re actively participating in these vital endeavours. Our Faculty of Science, in collaboration with the Business School, introduced the MSc Energy Engineering Management (MEEM) programme which welcomed its first cohort in September 2023. The programme addresses the need for future business leaders to understand and support the economic and environmental transformations required to support this goal. Notably, the programme is designed to enable students with a background in engineering or a related subject to become leaders in this field. It’ll equip students with both the technological and strategic skills required for the transition to a zero-carbon future. With this blend of expertise, hugely valuable in the future energy industry, our programme will enable students to access a variety of roles across the sector. The MEEM programme features specifically designed key modules, covering a range of relevant business and engineering subjects, from elementary topics to advanced contemporary subjects. Students are introduced to the latest in renewable energy technologies, sustainable energy policies, and strategies tailored for the modern industrial landscape. As well as conventional academic modules, the School has introduced a credit-bearing careers and professional development module which gives the students time to formally reflect and plan the next step of their career progression. The programme is rooted not just in theoretical knowledge, but in practical applications and partnerships. A Business and Engineering Systems module with close industry

Issue 13 / 2024

collaborations provides first-hand experience of the real-world challenges and solutions in the energy sector, as the students work in groups to design a solution to a real-world scenario. The first student cohort has attracted participants from a range of countries including the UK, US, Germany, China, Palestine, and Indonesia. This international representation not only underscores the programme's global appeal but also enriches the academic environment. The diversity brings together varied perspectives, experiences, The MSc Energy and approaches to energy Engineering management, making the Management (MEEM) learning experience truly programme is more global in nature. Conversations than a degree—it's in and out of the classroom are a commitment to as much about cross-cultural the future. understanding as they are about energy dynamics. As one of our students, Harper Daniels, indicated, “The climate crisis is a global issue that requires a global approach to solve. The MEEM programme is the perfect place to gain a global perspective on ways to combat the climate crisis since our diverse cohort allows us to learn about climate practices all over the world.” In summary, the MEEM programme is more than a degree—it's a commitment to the future. Under the expert guidance of Programme Directors Professor Grant Ingram and Dr Yanlu Zhao, students are prepared not just to navigate the energy sector but to lead it into a sustainable, net zero future. Scan or click the QR code to find out more about the MSc Energy Engineering Management programme.

Students from the first MSc Energy Engineering Management cohort.

News and events

New appointments to the Professor in Practice Initiative

n the Recognition Round-up article the accreditation panel from AMBA commended the appointment of Professors of Practice across the School, stating that such appointments underpinned the relevance and practice-based nature of the MBA programme. In the last issue we highlighted the appointment of Lucian Hudson, Director of Advancement, Marketing and Communications here at Durham. We are delighted to highlight a further three appointments to the initiative. In August 2023, two new financial sector experts we appointed. The Department of Finance appointed Sarah Pritchard, Executive Director of Markets and Executive Director of International at the Financial Conduct Authority (FCA) to work with the Department while the Department of Accounting appointed Michael Izza, Chief Executive at the Institute of Chartered Accountants for England and Wales (ICEAW).

Sarah Pritchard Finance’s new Professor in Practice brings with her a wealth of expertise and insight built through a highly successful career across investigative, operational and legal roles in a range of government departments and in the private sector. She has focused extensively on financial crime, as the first Director of the UK's National Economic Crime Centre, as well as holding global financial crime leadership roles in banking. She has also spent time as a commercial litigator and investigative lawyer in government. Upon her appointment, Sarah said: “I am honoured to be a part of this initiative which will provide students with the opportunity to gain insight and first-hand knowledge about how the UK regulatory framework for the financial services industry operates to help markets function well. I'm really looking forward to sharing how the FCA is changing to be a data led, outcomes focused and national regulator, with locations in London, Leeds and Edinburgh. I'm also keen to hear from students about their view of the future skills and capabilities needed to continue to adapt to the changing nature of the financial services industry, and the opportunities and challenges of increased digitisation." Professor Julian Williams, Head of Department, Department of Finance added: “We’re delighted to welcome Sarah as a Professor in Practice. The importance of the financial services sector to the UK economy and the need for careful, evidence led regulation has never been more crucial to our economic wellbeing than now. As we face the many and varied ongoing global challenges, Sarah brings a wealth of experience to our department and this appointment is a catalyst for increasing the impact of our teaching and research. Finally, I want to thank all my colleagues who have worked with Sarah and assisted in making this wonderful appointment happen.”

Durham University Business School / IMPACT

Michael Izza

Ian Baggett

The Department of Accounting’s first appointee, Michael, is a Durham Law graduate. He returns to Durham after a highly successful career in the accounting and finance sectors. His career has had a global impact, holding roles as the Chairman of Chartered Accountants Worldwide, alongside his position with the ICAEW.

Ian is the founder and CEO of Adderstone Group – one of the largest privately owned companies in the North East of England – and a Durham graduate twice over having receive his bachelor's degree and PhD here. In his role as a Professor in Practice Ian will be able to draw upon a varied professional life that has also included service as a commissioned officer within the Royal Navy, backing a management buyout and de-listing of power electronics specialists Turbo Power Systems and being a shareholder director of Openworks Engineering Limited, a defence engineering business whose counter drone technology has been used to defend three successive US presidents.

Upon his appointment, Michael Izza said: “Good exchanges between academia and the accountancy profession has never been more important. The world is already very complex, and the overlay of generative AI, sustainability and the transition to net zero will present huge new opportunities and risks. It will be an honour to work alongside colleagues at the Business School in seeking to understand these.” Professor Amir Michael, Head of Department, Department of Accounting acknowledged the value of the appointment, saying: “We are pleased to welcome Professor Michael Izza as our first Professor in Practice in the accounting department. Michael will be a great addition to the department leveraging on his wealth of experience and enormous network. Michael’s expertise will contribute to the department strategic themes around accountability, sustainability, and digitalisation. We are looking forward to working with Professor Izza and introducing him to our department staff, students, alumni and our wider stakeholders.” In September 2023, Dr Ian Baggett, a prominent businessman and entrepreneur, joined the Professor in Practice Initiative as a joint appointment for the Departments of Finance, and Management and Marketing.

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Upon his appointment, Ian said: “I look forward to doing whatever I can to help strengthen ties between the University and industry. I also hope to inspire pupils from the region to choose Durham and students already at Durham to stay on in the region to build great careers, businesses and lives. If I can, they can." Commenting on his appointment, Professor Cathy Cassell, Executive Dean said: “Ian’s knowledge and his passion for the North East, alongside his immeasurable success as an entrepreneur and across the real estate industry, provides us with a tangible link into areas important for the future development, both in the North East and beyond.” Scan or click the QR code for more information on the Professors in Practice Initiative.

News and events

The future of work event

n Friday 23 June 2023 the School hosted a TEDx-style event at Durham’s Radisson Blu hotel to consider the future of work in the post-pandemic era. Faculty from the School delivered a series of short talks related to the theme and based upon their research into work areas. Over 50 fellow academics, students and industry practitioners attended the event to listen to the insights and share their experiences. Professor Olga Epitropaki, Deputy Executive Dean (Research) welcomed the assembled delegates along with Professor Susanne Braun and Dr Peter Hamilton, respective directors of the two research centres – Leadership and Followership and Organisations and Society – who were joint organisers of the event. After the welcome, TEDx Ambassador Elena Papadopoulou expertly introduced the presenters in the two themed areas being covered in the morning sessions. The day started by considering trending post-pandemic work issues, such as future work trends, dignity at work, and ESG, covered by Professor Martyna Sliwa, Dr Peter Hamilton and Professor Anna Tilba. In the second session – An inclusive and connected world – 'impostorism', equality and diversity, trust, and leadership in hybrid working conditions were the issues covered by Professor Susanne Braun, Dr Mariann Hardey, Professor Bart de Jong and Professor Olga Epitropaki. Professor Epitropaki said, “We’ve witnessed dramatic and speedy change in the world of work over the last five years and there is no sign of this slowing down. In fact, with developments

in areas such as Artificial Intelligence, we could be looking at even more impactful changes in society, with even more important need for our leaders to understand how to manage this in their organisations. This event has allowed our faculty to disseminate impactful research-based and evidence-based insights about the future of work with representatives from industry. Through the roundtables and practitioner panel we have had the opportunity to engage in an open discussion about the future challenges and opportunities we face in the world of work.” The practitioner’s panel in the afternoon was one of the highlights and was supported by Aneela Ali, Executive Director, North East Chamber of Commerce, Paul Butler, CEO, North East Automotive Alliance and AnneMarie Lister, Atom Bank’s Chief People Office. Attendees judged the event to be a great success with delegates commenting on how informative and thought-provoking the sessions had been. Recordings of the sessions will be made available shortly through our website and social media channels.

With developments in areas such as Artificial Intelligence, we could be looking at even more impactful changes in society.

Similar events on a range of other important topics are being planned. Scan or clink the QR code to find out more about the School’s events. Or register your interest with the Research team by emailing business.researchhub@durham.ac.uk

The practitioner’s panel. L - R Anna Tilba, Paul Butler, Aneela Ali, Marie Lister and Olga Epitropaki.

Durham University Business School / IMPACT

News and events

The cost-of-living crisis conference

n 9 June 2023, the Centre for Organisations and Society hosted a one-day conference entitled The Cost-of-Living Crisis – impacts from a multi-disciplinary perspective. The aim was to bring together different stakeholders from across the North East of England and beyond to advance knowledge and further understanding of the specific ways people are experiencing the cost-of-living crisis. The event opened with a speech from Jamie Driscoll, Mayor of the North of Tyne, who spoke about the experiences of his constituents, in particular concerns about the rise in child poverty, the stresses of parents trying to make ends meet, the insecurity of precarious work contracts, and the mental stress that affects relationships due to these issues. He talked about job creation, more access to training for workers and a better transport system. Ewen Speed, Professor of Medical Sociology at the University of Essex, spoke about how to rearticulate the cost-ofliving crisis as a cost of inequality crisis.

Joyce Liddle, Professor of Public Leadership and Enterprise and Academic Director, Insights North-East at Northumbria University, presented on how North East devolution would impact on inequalities and on the ongoing cost-of-living crisis. Martina Hutton, Senior Lecturer in Marketing at Royal Holloway University of London, discussed consumer deprivation. Mercy Denedo, Assistant Professor in Accounting at the School and Amanze Ejiogu, Senior Lecturer in Accounting at Newcastle University Business School presented on stigma and social housing. Mary Foy, MP for the City of Durham discussed her concerns about the residents of Durham and the cost-of-living crisis. She also mentioned Durham University and how she has convened a Durham Student Housing Forum to help both residents and students. Attendees included a mix of academics and local government officials and created an opportunity for interested parties to share their knowledge and engage in discussion. Scan or click the QR code to find out more about the work of the Centre for Organisations and Society.

The event opened with a speech from Jamie Driscoll, Mayor of the North of Tyne, who spoke about the experiences of his constituents.

Professor Jo McBride with Jamie Driscoll, Mayor of the North of Tyne.

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News and events

Mentor of the Year 2023

ach year, alongside their programme, our Durham MBA (Full-time) students are offered the support of a mentor to help them navigate the demands of MBA study and prepare for the transition to the workplace. The mentoring programme is a cornerstone of the Durham MBA (Full-time) programme, in which each student is matched with mentors from the business and alumni world who provide guidance and support.

The mentoring experience We’re delighted to announce the 2023 Mentor of the Year is Nabil Parkar. Nabil himself is a Durham MBA and Ustinov College alumnus, having graduated in 2017. Working as Senior Manager, Partner Marketing at Expedia Group, Nabil volunteered to support current MBA candidates in his free time.

Commenting on the announcement of the award, Nabil said, “I am incredibly proud and honoured to have been awarded Mentor of the Year. Working with mentees during their MBA journeys has been a joyful and rewarding experience for me. It's been incredibly fulfilling to help students navigate the challenges and opportunities of their educational and career paths. I am grateful for the opportunity that DUBS has given me to contribute to the growth and development of future business leaders. I look forward to continuing to mentor students in the years to come!”

This mentorship programme is an excellent source of support, and I kept thinking how unbelievably lucky I got to have Nabil as my mentor.

Durham University Business School / IMPACT

It's been incredibly fulfilling to help students navigate the challenges and opportunities of their educational and career paths. I am grateful for the opportunity that DUBS has given me to contribute to the growth and development of future business leaders.

A guiding light His mentee, Utsa Bajaj, explained why she nominated Nabil, saying, “There are numerous reasons why Nabil deserves to be recognised as a mentor. Right from the first contact, he has been supportive, encouraging and has been a guiding light. He always went above and beyond in his advice to help me strategically approach the problem and find solutions. He would devise an actual plan on how I can tackle things, not just give me vague words of encouragement. Be it academics, time management, feeling overwhelmed or career planning. I am someone who strives for high performance and tend to get overwhelmed when I take on too much. The high stress of the MBA and wanting to perform well academically always had me worried, and Nabil’s guidance was the biggest support for me this year. What was exceptional is that his job has him travelling a lot, to different continents. He has still never missed a monthly call. During the end of each call, he would align the date for our next call on our calendars and prioritise our calls. This mentorship programme is an excellent source of support, and I kept thinking how unbelievably lucky I got to have Nabil as my mentor. We have been in contact even after the MBA is done, in fact even today. He is someone who goes above and beyond and for that, truly, I hope he receives a much-deserved token of appreciation.”

Mentoring can deliver life-transforming experiences Matteo Lai, Alumni Relations Coordinator, commented on the value of the programme, saying, "Our mentoring programme is a fundamental part of our MBA’s life-transforming experience. We are lucky to be supported by the overwhelming generosity of our alumni, who every year give their time and experience to our students. Nabil's nomination represents everything that works well in the mentoring programme and is a testament to the impact he has had on Utsa's life and career. Nabil excelled in his time in Durham, winning the Durham University Business School Innovation Award for the Most Innovative Business Proposal and has been mentoring with us for several years now. We are fortunate that he is currently supporting another student this year. We look forward to working with Nabil in the years to come, and to seeing him again at our alumni events." Nabil joins previous illustrious winners Dr Paul Aldrich, Raghava Manglik, Paul Hollick, Cecilia Luras, Travis Callaway, Stephen Tunnicliffe, Kamales Lardi, Frank Wege, Claire Rose, Hotung Lee and Elizabeth Scott. Scan the QR code to learn more about the Durham MBA (Full-time).

If you’re an alum interested in our mentoring scheme, please contact business.alumni@durham.ac.uk

Issue 13 / 2024

News and events

A summer celebration welcoming new graduates to the alumni community 62

Durham University Business School / IMPACT

News and events

n Wednesday 5 July, Business School volunteers and academics had the pleasure of welcoming hundreds of graduands and their guests to celebratory events in St Chad’s College and the Teaching & Leaning Centre. The event, organised by the Alumni Team together with academic departments, was the culmination of months of planning and teamwork from all corners of the School. Decorations, flowers and a branded background transformed a space usually associated with studying into a place of celebration and redcarpet-style photos. Refreshments flowed as happily as the conversations around the room. Awards were given to exceptional students, cheered on by their families and friends.

Accounting and Finance’s Sophie Angel, who brought home the prizes for Highest Overall Mark and Best Dissertation, later wrote, “My family and I had a great time, and it made the day more memorable. I look forward to attending alumni events in the future!” Matteo Lai, Alumni Relations Coordinator, further commented, “It was an incredible and enjoyable day, marking the end of the student journey and the start of a lifelong relationship with Durham as alumni. It was a privilege to be there to congratulate the students, ensure everyone had a good time and welcome them to the alumni community. I am sure I will see many new familiar faces at our next events.”

It was an incredible and enjoyable day, marking the end of the student journey and the start of a lifelong relationship with Durham as alumni.

Scan or click the QR code for more information on the alumni association.

1. Sophie Angel receiving her awards. 2. MBA and DBA graduates celebrate at St. Chad's College.

Issue 13 / 2024

3. Business School graduates congregate outside Durham Cathedral.

News and events

Return to China events

n September 2023, the Business School returned to China to host our first postCovid-19 series of alumni gatherings. Our new Executive Dean, Professor Cathy Cassell, had the opportunity to meet our wonderful alumni community and welcomed over 300 graduates and supporters across four days at events in Beijing, Shanghai and Shenzhen. During the events, Professor Cassell spoke about major developments at the School, including the Waterside, a new Business School building opening in Summer 2024. The city centre location will not only offer state-of-theart facilities to students and staff but will also become a centre of excellence for business education in the local community. The opening will be ahead of the School’s 60th anniversary in 2025. Professor Cassell is keen to include our global community as part of the celebrations.

The Executive Dean also shared the excellent news that our MBA programme has once more been awarded a five-year re-accreditation by the Association of MBAs (AMBA), which maintains our triple-crown accreditation and reinforces the School’s global standing. Professor Cassell also noted the Online MBA’s success in ranking 8th in the World in the Financial Times Online MBA Ranking 2023. She also spoke about the diversity of our international research partnerships. These included the renewal of our prestigious partnership with The Palace Museum in Beijing, which signifies the continuing commitment to promoting joint research, conservation and cultural heritage protection.

Professor Cathy Cassell welcomed over 300 graduates and supporters across four days at events in Beijing, Shanghai and Shenzhen.

Beijing Alumni Gathering. Photo taken by Ning Ding (Accounting, St Chad's College, 2018-2020).

Durham University Business School / IMPACT

Leadership recognition in Shenzhen

Professor Cathy Cassell, Professor Rob Lynes, Professor Charlotte Clarke and Professor Junjie Wu with Alumnus Rupert Hoogewerf, China Lead Ocean Wang and our Shanghai Chapter Leaders.

Celebrity alumnus in Shanghai In Shanghai, Professor Rob Lynes (Head of Stephenson College and Associate Pro-Vice Chancellor Global) joined the delegation and shared updates on the wider University with the attendees before they were joined by esteemed alumnus Professor Rupert Hoogewerf (Chinese with Japanese, St Cuthbert’s Society, 1989-1993). Rupert founded the Hurun Research Institute, which is well known in China for providing the world’s largest wealth evaluation on individuals, promoting entrepreneurships through its lists and research. The Professor in Practice was well received by the alumni and commented after the event, “Durham started me out on my China journey when I was 19. It was lovely to meet so many graduates in Shanghai who have now started out on their careers, with Durham as a key part of their own journey.”

The School has a thriving alumni community across China with dedicated Chapter Leaders hosting regular events throughout the year.

The School has a thriving alumni community across China with dedicated Chapter Leaders hosting regular events throughout the year that enable our alumni community to foster Durham connections and grow their networks. The visit to Shenzhen allowed Professor Cassell to present Ziqing (Olivia) Yan (Finance and Investment, Ustinov College, 2007-2009) with the Dunelmensis Award. This award is given by the University's Senate to a Durham alumnus or alumna for meritorious and exceptional service in support of the University, particularly for enhancing the University's reputation nationally and internationally. Olivia was awarded the Dunelmensis for founding the Shenzhen Chapter, one of the University’s fastest growing International Chapters. The Shenzhen Chapter was founded in September 2017 and through a successful events programme before the pandemic combined with Olivia’s more recent activity on social media, it’s now a vibrant network that supports graduate employability for Durham graduates. It particularly supports Durham graduates relocating to Shenzhen from other parts of China. On receiving the award, Olivia commented, “I would like to express my deepest gratitude for this prestigious honour and the incredible support I have received from all leaders of our Shenzhen Chapter, and all alumni in Shenzhen. The alumni in Shenzhen are young and vibrant, who come from different cities in China. Our leaders of Shenzhen Chapter have dedicated much effort as volunteers, to organise various activities that would gather the alumni and foster a spirit of mutual assistance among the community. I would also like to extend my appreciation to the Business School for its tremendous support since 2017. Its proactive involvement not only strengthens the bond between alumni and our Shenzhen association, but it also promotes the rapid growth of our association, from hundreds to thousands of members. Looking ahead, Shenzhen, as the hub of the Greater Bay Area in China, can foster greater collaboration with other alumni chapters, and create a powerful network that embodies the spirit of Durham University.”

Shenzhen Alumni Gathering, including Ziqing Yan receiving her award alongside Professor Cathy Cassel, Professor Karena Yan and Steph Osborne Photos taken by Di Huang (International Banking & Finance, Ustinov College, 2016-2018).

Issue 13 / 2024

News and events

Shanghai Alumni Gathering.

Job fairs Shanghai and Shenzhen also provided venues for jobs fairs that facilitated connections between our new alumni and potential employers. We had over 150 recent graduates attending and a wide range of employers, some of whom were also alumni, including MBA alumnus Andy Chan who summed up the experience. “I enjoyed the whole two events, both in Shenzhen and in Hong Kong, on 14 September and 16 September. Before our evening party, the Business School had organised a fantastic Careers Fair for alumni from Durham, Warwick and Newcastle. I have joined past events in Shenzhen a few times, and on this occasion, it was the biggest crowd of participants! Over the years, I have invited a few corporations to join the fair. For example, Kingdee, a software company. The Human Resources representative of Kingdee said that they could have employed many talented students who attended and that they showed very high interest in joining their company. I could see everyone in the event, including the volunteers, our School comrades, and the employers, showing their enthusiasm and eagerness to help the visiting alumni, in hopes of assisting them to get job opportunities!” Stephanie Osborne, the School’s Alumni Relations Manager agreed, “The School values its alumni in China and it is clear to see from these events that the feeling is reciprocated. The alumni shared fond memories from Durham, and it is a real privilege to bring our community together again to events with real benefit for them.”

Professor Cathy Cassell.

Cathy reflected, “It has been really lovely to attend these events and see the support given to our early graduates by businesses and alumni in the regions I’ve visited. Our international chapter leaders and their volunteers do a fabulous job of ensuring we have a presence and build our already strong brand here in China.” The final leg of the trip involved Business School colleagues joining the ViceChancellor's Reception in Hong Kong.

The School values its alumni in China and it is clear to see from these events that the feeling is reciprocated.

Scan or click the QR code for more information on our alumni association, including updating your details if you’re a graduate.

Durham University Business School / IMPACT

Turn our talent to your advantage and tackle your business challenges head-on with a Strategic Consulting Project

Does your business have a challenging issue but not the time to address it?

Scan or click the QR code to find out more

Then consider a Strategic Consulting Project with Durham University Business School. Between June and September, our MBA students work across all sectors and functions, applying their skills and knowledge to deliver ideas and recommendations to take your business forward. Contact us today to discuss your requirements.

Issue 13 / 2023

World-class executive education from a triple-accredited Business School We offer a range of programmes suitable for today’s global executives delivered online/hybrid and part-time. Durham Leadership Programme

Doctorate in Business Administration (DBA)

The School’s tailored leadership programme has its academic structure based on modules drawn from our Online MBA and EMBA programmes. The detailed content is developed as a result of close partnerships between Durham’s academics and client companies.

We offer a range of part-time executive doctoral programmes that allow senior executives to pursue a business research interest at the highest level. Choose either the single DBA from Durham or the dual award Global DBA delivered with emlyon business school, France.

Online MBA The Durham Online MBA is well-established and consistently highly ranked. Study either entirely online over 24 months or opt to attend modules delivered at the Business School in a UNESCO world heritage city.

The Durham-EBS Executive MBA In partnership with EBS Universität we offer a globally recognised EMBA. You will gain practical knowledge at an international level through a recognised management programme delivered parttime over 18 months in both the UK and Germany.

Scan or click the QR code to find out more