The New Global Citizen - Summer 2015 by New Global Citizen

Summer 2015

18 Leadership

FOUR LEADERSHIP LESSONS EVERY CHANGE AGENT NEEDS TO LEARN Madeleine Blanchard

6 Around the World

NIGERIA’S PEACEFUL 2015 ELECTION MAKES HISTORY Ann Oden

22 Global Pro Bono

THREE WAYS GLOBAL PRO BONO BUILDS BETTER LEADERS Amanda MacArthur

34 Impact & Innovation

CAN LEGISLATION FORCE COMPANIES TO BE MORE RESPONSIBLE? Alicia Bonner Ness

LEADING FOR

CHANGE Forging a Pathway to Transformation

Summer 2015 Contributors

Editor In Chief Alicia Bonner Ness

Executive Publisher

Karl Hofmann

CEO, Population Services International

Ann Oden

Nigeria Country Director, PYXERA Global

Hannah Romick

Co-founder, Conscient Strategies

Lauren Kienzle

Senior Program Coordinator, PYXERA Global

Madeleine Blanchard

Co-founder, Blanchard Coaching Services

Deirdre White

CEO, PYXERA Global

John Holm

Senior Director, CAF America

Christian Bartley

Principal, Faleiro

Laveen Naidu

Former Executive Director, Dance Theatre of Harlem

Maia Wagner

Senior Program Coordinator, PYXERA Global

Laura Asiala

Vice President, Public Affairs, PYXERA Global

Harry Pastuszek

Vice President of Enterprise & Community Development, PYXERA Global

Andrew Hoffman

Professor of Sustainable Enterprise, University of Michigan

Amanda MacArthur

Managing Editor, Design & Publication Manager Melissa Mattoon

Cover Illustration Bratislav Milenković (http://bit.ly/1I5Q0e5)

PUBLISHED DAILY AT: www.newglobalcitizen.com CONTACT: editor@newglobalcitizen.com (202) 719-0656 @BeNewGlobal facebook.com/BeNewGlobal

Today’s world demands individuals and organizations prepared to thrive in a globally interconnected network of challenges and opportunities. Greater social awareness and innovative approaches have allowed us to cross borders and cultural boundaries to create shared value and understanding. The New Global Citizen chronicles the stories, strategies, and impact of innovative leadership and global engagement around the world. This publication seeks to capture the ground-level impact of these approaches, providing an avenue through which beneficiaries and implementers alike can showcase their impact. Today’s transformed and increasingly interconnected world has spurred a revolution, ushering in collaborative approaches that address complex challenges. The New Global Citizen elevates the ways in which individuals, corporations, and social enterprises champion a better future for our world.

THIS IS THE WORLD OF THE NEW GLOBAL CITIZEN. THIS IS YOUR WORLD.

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The New Global Citizen | Summer 2015

INSIDE THE ISSUE

Leading for Change in a VUCA World

T Many aspire to lead better, but what a leader needs to learn to manage this reality is not always clear.

oday’s leaders must be prepared to confront a world that is volatile, uncertain, complex, and ambiguous. These dynamics are so consistently true that many management experts now speak of how to lead in a VUCA (“voo-cah”) world. Many aspire to lead better, but what a leader needs to learn to manage this reality is not always clear. In this issue of The New Global Citizen, we have searched the field of leadership for models, lessons learned, and shining examples that offer inspiration and insight for leaders everywhere. In these pages, we go inside the outcome of the recent Nigerian election as an unlikely example of leadership. In Angola, we reflect on the attitude needed to succeed in an environment of constant change. And in Serbia, we explore how leading social sector organizations are adapting to thrive in the face of constraints imposed by the country’s expected E.U. membership. Karl Hofmann, the CEO of PSI, reflects on his own lessons in management and their implications for leadership in the 21st century. Madeleine Blanchard, a best-in-class leadership coach, shares a universal leadership

model that transcends culture. Laveen Naidu, the former Executive Director of Dance Theatre of Harlem, reflects on how classical dance can become a medium for better intercultural understanding. We explore how immersive, cross-border pro bono service experiences better prepare executives for leadership in a VUCA world, and how governments are using legislation to encourage companies to prioritize social investment. By using common language and finding common cause, perhaps we can minimize the downsides of a VUCA world, and instead exploit the realities of complexity and uncertainty to foster growth and innovation.

Alicia Bonner Ness Editor in Chief

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FEATURES 18

THE FOUR LEADERSHIP LESSONS EVERY CHANGE AGENT NEEDS TO LEARN Made le i n e Blanchar d

THREE WAYS COMPANIES BUILD BETTER LEADERS WITH GLOBAL PRO BONO Am anda MacAr thur

CONNECTING THE GLOBAL HUMAN EXPERIENCE THROUGH DANCE L ave e n Naidu

THE OPPORTUNITIES AND CHALLENGES OF LEGISLATING SOCIAL GOOD Ali c i a Bonner Ness

THERE IS ENOUGH FOOD TO FEED THE WORLD – WHY PRODUCE MORE? Harry Pa stuszek

AROUND THE WORLD 6

NIGERIA’S JOURNEY TO AUTHENTIC LEADERSHIP Ann Ode n

LESSONS IN LEADERSHIP FROM ANGOLA’S OIL & GAS FRONTIER Hannah Romick

SERBIA’S E.U. BID THREATENS THE FUTURE OF ITS SOCIAL SECTOR Laure n Kienzle

4 COMMENT

AUTHENTIC LEADERSHIP FOSTERS A CULTURE OF POSITIVE CHANGE K a rl Ho fm a n n

22 HAPPENINGS

CAN SHARED VALUE SURPASS THE PROMISE OF CSR? S h a re d Va l u e L e a d e rs h ip S u m m it

28 HAPPENINGS

THE IDEAS GLOBAL CHALLENGE ENABLES THE INVENTIONS OF THE BEST AND BRIGHTEST M I T I D EAS Gl o ba l C h a l l en g e

36 HAPPENINGS

HARNESSING THE SUPERHERO POWER OF HEALTHCARE INNOVATION I PI HD An n u a l Fo ru m

42 HAPPENINGS COMPANIES THAT LEAD WITH CSR LEAD THE WAY Wo rl d C S R C o n g re s s a n d C h a ri t i e s @ Wo rk C o n feren ce

50 BOOK EXCERPT CULTURE AND CLIMATE: GETTING THE SOCIAL SCIENCE RIGHT FOR CHANGE An d re w J . Ho ffm a n

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The New Global Citizen | Summer 2015

Authentic Leadership Fosters a Culture of Positive Change Karl Hofmann “IT REALLY WASN’T ME—ALL CREDIT GOES TO MY GREAT TEAM.”

ow often have we heard that line from a leader, or used it ourselves? We admire that manager’s humility, and assume anyone using that approach must be great to work for. Right? Former Secretary of State Colin Powell doesn’t think so. He used to tell his senior staff at the State Department, “If your team did all the work, then why do I need you?” He would say this with a tinge of humor, but his point was clear: leaders need to lead, and their contributions ought to amount to more than just the sum of a team of followers, even if that team is high-performing. Powell brought the U.S. Army culture—where he served for 46 years, ultimately as Chairman of the Joint Chiefs of Staff—with him to the State Department. He realized that one of the most challenging aspects of his new role would be to reshape the culture of the department to serve his vision for American policy. And he would have to dig in and take the lead, not simply rely on those he had assembled around him. Changing the culture of an organization may be the toughest assignment any leader will confront. Powell knew this and so did Alan Mulally, who took over Ford Motor Company on the eve of the 2008 financial meltdown. As Bryce Hoffman recounts in his 2012 book American Icon, Mulally took his decades of experience building a culture of teamwork at Boeing and slowly massaged it into the strong and independent spirit of the American auto industry. He required that those who had previously isolated themselves integrate into the collective. That decision paid off; Ford was the only automaker to avoid bankruptcy after the American economy collapsed. Collaborative leadership and shared problem-solving won out over older models of Detroit leadership. I experienced the challenge of organizational culture change directly when I assumed the leadership of Population Services

International (PSI) in 2007. Before I arrived, PSI had harnessed the power of an individual-driven culture to fuel the organization’s expansion in the decades since its founding in 1970. The high-performing PSI staff, however, was proud of its iconoclasm in a sea of cooperative NGO partnerships, where rewards often favored showing up more than getting things done. PSI embraced its cowboy reputation, anxious to wade in and do things while others dithered in working groups. But in 2007, expansion powered by a strong culture of individualism was showing its limits. As the emphasis on collaboration in the global health community grew stronger, PSI’s autonomy became

The New Global Citizen | Summer 2015

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COMMENT an obstacle to growth, rather than an at- change management components built in. Across the public, private, and social tribute. Suddenly, institutional funders in At first, this was badly received, but over sectors, different leadership ideals prethe realm of global health required active time PSI developed its own homegrown vail—even practices that seem to be diapartnering among grant recipients. One of approach using innovation tools that have metrically opposed have been successful PSI’s leading donors, The Global Fund to worked consistently. We began hiring with in the right circumstance and context. In Fight AIDS, Tuberculosis and Malaria, began a broader definition of the skillsets we the business world, influential leaders like gathering stakeholders and cooperating needed, rather than solely those typical Elon Musk, the late Steve Jobs, and Jack Ma implementers at the same table to decide to global health. We inventoried our poli- have met with great success through tophow to execute grants. Increasingly, major cies and procedures, built structures to vet down approaches, while Sheryl Sandberg, donors like USAID expected large consortia and approve new ones, and we rewarded Paul Polman, and others have delivered of NGOs to bid on larger projects together. leaders who upheld these policies, actively incredible results through collaborative For PSI, a funding landscape that and shared-leadership models. rewarded collaboration over inIn government, a culture of dividual success challenged the global insecurity and persisLeaders shape the future of their status quo. PSI’s staff had always tent challenges often favor prided itself on the entrepreneurial executives willing to make organizations, more than just simply by energy and independence at the unilateral choices. Yet, the building the right team, and the absence of a ground level, “where the health complexity of today’s interstrong and appropriate culture can prevent dependent world and the happens.” Headquarters management exercised relatively little an organization from achieving its goals, no need for collective security direction over country-level decican also favor more subtle matter how adept its leadership may be. sions, which was considered an models of leadership such organizational strength. But PSI as what the Obama adminwas growing as well, managing istration informally termed even more programs in multiple countries embracing a culture of collaboration. While “leading from behind.” In the social secfunded by multiple donors. The growth was these changes did expand the organiza- tor, one can cite numerous examples of challenging PSI’s individualism, opening up tion’s bureaucracy, it also led to more buy- successful and highly individual leaders organizational risks and fatigue created by in. We overhauled our corporate mission who have presided over strong growth and perpetually reinventing-the-wheel, due to statement and embraced six refreshed impact, though the sector itself has often the absence of effective organization-wide corporate values, which emphasized that embraced collaboration and shared apsystems. For instance, human resource sys- success comes from honest and pragmatic proaches to challenges more consistently. tems varied widely across the countries in work with others for long-term sustainable In reality, both Colin Powell and Alan which PSI worked and financial reporting impact. Mulally’s lessons on leadership hold true had not yet been standardized. These changes—toward collaboration in a complex landscape of leadership for I termed this a mismatch between PSI’s and away from individualism; toward stan- positive change. Leaders shape the future “muscle mass,” our field programs, and dardization and away from bespoke sys- of their organizations, more than just simour “skeleton,” or the procedures, poli- tems everywhere—are incomplete and un- ply by building the right team, and the cies, and systems needed to make that even. And I must take care of course not to absence of a strong and appropriate culture muscle mass perform at its highest lev- push such changes too far, because there can prevent an organization from achieving els. PSI needed to shift its culture toward is much positive energy in PSI’s legacy cul- its goals, no matter how adept its leadergreater centralization and standardization, ture, which deserves to be nurtured. None- ship may be. Leading enduring approaches without sacrificing its independence and theless, the organization’s cultural shifts to social impact demands patience, comspirit of innovation. over the last eight years have enabled PSI mitment, and the wisdom to adapt to the We began by introducing a new en- to double in size, expand its range, and conditions the marketplace of the future terprise resource planning system, with deepen its impact. will reward.

S uppo r t e r s o f t h e mai n Al l Prog re ssi ve C o n gre s s at t e nd a ra l ly i n K a du n a , N i ge ri a.

ometimes, the best thing a leader can do is admit defeat. That’s what I Iearned from the 2015 Nigeria presidential election, which pitted incumbent Goodluck Jonathan against former military dictator Muhammadu Buhari. In the months leading up the election, Nigeria was in tumult. Boko Haram was wreaking havoc in the country’s north. The violence was so bad that Jonathan postponed the February elections until April. The heavy military presence in major cities, especially those designated as flash points, had the country on edge. People prepared for unrest by stocking up on food and other provisions. Those who could afford to left the country for fear of violence. In my home city of Calabar, an uneasy calm hung in the air. When Buhari’s victory was announced, the first time in Nigeria’s history

that a sitting president had been voted out of office, the world held its breath for the expected backlash. Then, nothing happened. A collective sigh of relief could practically be heard across the region as Nigeria began its first peaceful transition of power.

An Election to Remember Nigeria’s democracy is still relatively young, and elections have almost always brought controversy, often precipitating protests and violence that destabilize the country for weeks. A democratic civilian government was established just 16 years ago, replacing a series of military dictatorships that ruled after the country gained independence in 1960. Like many formerly colonized regions, Nigeria has struggled to operate as a cohesive whole given the Photo: Getty Images/Florian Plaucheur

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AROUND THE WORLD

NIGERIA’S JOURNEY TO AUTHENTIC LEADERSHIP NIGERIA MAKES HISTORY WITH PEACEFUL 2015 PRESIDENTIAL ELECTION Ann O den

forced consolidation of different ethnic and religious groups into a single nation under British colonial rule. In 2011, the presidential election divided the country in half—by politics, geography, and religion—triggering a slew of violence across the northern states that left over 800 people dead. Many worried that no matter what the result of the 2015 vote, violence would erupt somewhere. A victory for Buhari, a northern Muslim representing the All Progressive Congress (APC), could disrupt the oil-producing Niger delta. The re-election of Jonathan, a south-

ern Christian, could reignite violence in the north, similar to the 2011 riots. This time, however, it was different. Jonathan immediately conceded defeat, accepting the end of both his six-year presidency and the 16 years of leadership of the People’s Democratic Party (PDP). “Nobody’s ambition is worth the blood of any Nigerian,” the former president said in a statement released after the election results were announced. “The unity, stability and progress of our dear country is more important than anything else.” Surprising many, Jonathan asked his supporters to accept the outcome and conveyed his best wishes to Buhari, who was sworn into office at the end of May. The 2015 election also offers some hope that Nigeria’s irreconcilable religious divides might yet be converted into a culture of national unity. Buhari, a Muslim, secured northern support while also making inroads in the southwestern states,

due to the formidable coalition that gave birth to the APC. His campaign pledges, to fight corruption and quell the Boko Haram insurgency that has terrorized the country since 2011, transcended geographic and religious alliances.

Political Progress, Not Perfection This election marked another important step for the Nigerian political system: the integration of technology into the polling process as a way to prevent corruption. The Independent National Electoral Commission introduced the permanent voter card, which used biometric data to reduce the risk of ballot stuffing and fraud endemic in previous elections. With permanent voter cards in hand, people felt more certain their vote would count. This was progress, but the process was far from perfect. Many of the card readers did not work as expected and voters had to wait in line for hours to cast their votes. When

THE NIGERIAN

2015

With a GDP of

In a historic election, Muhammadu Buhari became the first Nigerian to defeat a sitting president through a democratic election, putting him at the helm of Africa's largest economy.

PRESIDENTIAL ELECTION

$509 billion,

With a population of

170 million,

Nigeria produces

Nigeria is Africa’s largest economy.

Nigeria is the most populous country in Africa.

barrels of oil per day, making it Africa’s largest oil producer.

2.5 million

OIL

REGIONAL RIVALRY

ECONOMY

I N F RA ST RUC T URE

SECURITY

Oil prices are falling and Nigeria’s economy has failed to diversify to protect it from market shifts.

The country continues to be equally divided religiously, politically, and geographically.

Institutionalized corruption, unemployment, and falling oil prices threaten the Nigerian economy.

More than 50% of the country has no electricity. Much of the infrastructure is in need of repair.

The Islamist extremist group Boko Haram continues to terrorize northeast Nigeria.

GOODLUCK JONATHAN People’s Democratic Party (PDP)

MUHAMMADU BUHARI All Progressives Congress (APC)

PDP

APC

Incumbent president

Buhari received

From the predominantly Christian and oil producing Niger Delta

2.7 Million more votes than Jonathan.

Former military ruler and four time presidential candidate From the predominantly Muslim north

2015

2011 PDP

APC

PDP

ACN

The 2011 election results show a clear geopolitical divide in the country, with the predominantly Muslim north voting for Buhari and the predominantly Christian south for Jonathan.

The 2015 presidential race was a rematch of the 2011 election. Voting results show a shift away from a clear north-south divide.

Data sources: INEC Nigeria | CSIS | The World Bank | Afrobarometer | Al Jazeera

A vot e r ho l d s u p his permanent v ot e r ca r d , wh i c h u s e d b i omet r i c d a t a to re d u ce t he ri sk o f b a l l o t st uffi n g a n d frau d .

card readers failed to work altogether, polling stations resorted Over the past decade, Nigeria has struggled to live up to its to manual voting, causing unprecedented delays in the release full potential. Though it is Africa’s largest economy, faltering oil of results. prices have underscored the risks of fossil fuel dependence. The Some Nigerians claimed that these technical failures meant the Boko Haram insurgency, which has killed nearly 18,000 people and elections were still not free and fair. But Jonathan’s quick conces- which continues to gain traction in northern states, is growing. sion allayed these concerns. His As a country rich in both natswift acceptance of defeat surural resources and determined prised Nigerians and media across individuals, Nigeria is in a unique As a country rich in both natural resources and the globe that predicted he might position to lead the region, yet determined individuals, Nigeria is in a unique try to exert his influence to stay in to do so requires an authentic position to lead the region, yet to do so requires power. Though he was not a perleader who can overcome coran authentic leader who can overcome corruption, ruption, guarantee security, and fect leader—his presidency was clouded by accusations of corrup- guarantee security, and invest in strengthening the invest in strengthening the councountry’s economy and infrastructure. tion and weak responses to Boko try’s economy and infrastructure. Haram—Jonathan’s willingness to Buhari is well-positioned to lead. accede to the democratic process He has the trust of the people, was an important act of leadership for Nigeria and Africa. His con- charisma, and an honest reputation. Yet, Nigerians will not easily cession set a precedent for the continent’s political leaders and forget Buhari’s militaristic past, characterized by repressive and may encourage more democratic transitions of power elsewhere. unlawful governing tactics. While he has reconciled some of his In some ways, being the first Nigerian president successfully past indiscretions, being democratically elected President does voted out of office may be his greatest achievement. What’s more, not automatically mean Buhari will be a good leader. Choosing to choosing to leave office graciously, and with a statement of peace lead collaboratively, transparently, and authentically will be critical and purpose, reinforces that the country’s leaders should value to enacting the positive political and economic change Nigerians the good of the country more than personal gain. so desperately seek. Photo: Heinrich-Böll-Stiftung | CC BY-SA 2.0

LESSONS IN LEADERSHIP FROM ANGOLA’S OIL AND GAS FRONTIER

Doing Business in Angola’s Oil and Gas Sector Demands Patience and Adaptation

n Angola, like so many emerging markets around the globe, change is constant and the challenges to quality of life often seem insurmountable. The two most commonly used words here are complicado and confusão—complicated and confusion. In short, chaos reigns. In 2002, Angola’s 27-year civil war came to an end, removing obstacles to commerce and reinvigorating the hope of a people downtrodden by decades of conflict. Angolans were ready to begin building toward a brighter future. Yet, despite the country’s new peace and political stability, on any given day, a weak infrastructure and a persistent culture of cronyism created obstacles to progress. Imports could be delayed in port for months at a time. Rains flooded the streets. Rolling

Hannah Romick

blackouts struck different sections of the city for hours or days at a time. Three times during my 18-month stay in Luanda, trucks transporting goods across the country were sucked into sinkholes that spontaneously collapsed in the middle of the road, stopping traffic for hours. Consistency drives performance everywhere, but in places like Angola, consistency itself is a challenge. Successful leaders in this environment demonstrate a steadfast vision, quietly and patiently continuing onward no matter what obstacles—or sinkholes—might erupt in their path. Anyone who interacts with these leaders can spot their inner confidence, determined and happy to achieve incremental progress toward their vision.

Photo: Maia Wagner

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AROUND THE WORLD CAE Enterprise Center Helps Angolan Businesses Succeed Eduardo Pembele, a tailor from Luanda, Angola, is a leader who managed to keep his business running during the war. He’d lost friends to disease, and over the years he, his family, and employees had to stop working for periods of time due to the conflict. As the war ended, he was ready to reinvigorate his business. Pembele wanted to compete for a contract from the oil and gas industry, Angola’s leading industry quickly opening to outside investment. But, he was unsure how to begin. He made his way to the Center da Apoio Empresarial (CAE), a business development center in Luanda founded in 2005 by a consortium of international and local oil and gas operators to cater to the needs of smaller Angolan companies seeking to win contracts from international oil companies. At the time, multinational companies were entering the market, hoping to take advantage of the increased peacetime opportunities in the country. Angola had become the second-largest producer of oil and gas in Africa. But instead of hiring locally, many oil and gas companies imported the goods and services they needed. This meant that few Angolans benefitted directly from the increase in investment. To counteract that, the Angolan government and oil and gas operators established agreements called local content requirements, which ensure foreign entities operating in a country make meaningful investments in the economic capacity of the host country. The intention is to leave a percentage of the profits in-country, by purchasing a regulated amount of products and services from Angolan companies. This was a big opportunity for Angolan businesses, but despite their enthusiasm, most were unprepared to compete. Many small businesses were unaware of international health and safety stan-

Consistency drives performance everywhere. But in places like Angola, consistency itself is a challenge. Successful leaders in this environment demonstrate a steadfast vision, quietly and patiently continuing onward no matter what obstacles—or sinkholes— might erupt in their path.

dards. Large multinational corporations have arduous procurement processes that small businesses the world over struggle to meet. In Angola, structures are not up to international code and most companies do not follow internationally accepted accounting principles. They often didn’t know how to become part of an approved buyers list. The risks of entering the sector are high and require immense investment of money and time not only to undertake a bid, but to successfully fulfill a contract once won—requiring a capital output most Angolan companies aren’t able to afford. Even for those that had the financial resources, the consulting services to implement business improvements were in short supply locally. CAE was established to aid in the fulfillment of local content agreements. Businesspeople like Pembele came to CAE for assistance, excited by the prospect of the immense wealth they could gain from even one small contract.

Finding the Heart of Local Industry I arrived in Luanda in the summer of 2006 as a member of MBAs Without Borders, formerly the MBA Enterprise Corps, to volunteer at CAE. During my year in Angola, I worked with the oil and gas operator procurement teams to identify gaps in their supply chain and to find local companies to fill them. We spent the bulk of our time working one-on-one with Angolan companies on completing a due diligence process to enable them to win contracts. This process included confirming that a company was at least 51 percent Angolan owned, had at least three years of financial records, and was compliant with safety regulations in their place of business. Beyond the individual consulting, our eight-person staff led training sessions on the procurement process, business ethics, financial management, supply-chain management and other sector-specific information for local businesses. We built relationships with the banking sector so that our clients could access more trade finance. Pembele wanted his company to be part of the “gold rush,” but he had never worked with a multinational corporation before. CAE served as a much needed resource, providing him with services and guidance as he sought to enter the oil and gas services market. Beyond the high-level local requirements and business process improvements, Pembele also had to ensure that the fabric he used and the style of the coveralls he produced met the fire standards regulated by the industry. To do so, he had to travel to various locations around the globe to source the appropriate material, not something the dressmaker had previously done for his business. We would often meet at his shop to discuss his

The road to Lubango, the capital city of the Angolan province of Huíla

progress towards meeting the international requirements and his strategy for transitioning his business from a local tailor to an international-standard uniform manufacturer. As I began my work at CAE, Pembele instantly found a place in my heart. There was something about his quiet, yet hopeful demeanor that made me want to help him win one of the many contracts open to local suppliers. Pembele was an innovative and progressive leader. He recognized that the world around him was changing and that those changes would affect the business he was trying to run. He was ready to adapt his operations to meet the new reality of operating in a global business space.

Embracing the Power of Change in the Face of Uncertainty During my time in Angola, I learned one of the most important leadership lessons of my career: few things in life are certain, but the specter of change is constant. Many people think of leaders as those who create a following, but in my experience, the test of true leadership is being able to create a culture that allows people to confidently navigate the uncertainty of change. A good leader doesn’t tell me to do things. Rather, she helps me think through a situation and determine the best way forward.

Pembele was an effective leader because of his openness to change and uncertainty, which encouraged those around him to follow his lead. He, like so many Angolans, was soft-spoken, but his vision empowered his employees to move forward. By the time I completed my year in Angola, he was awarded a small contract to supply 100 coveralls to one of the largest operators in country. It has been 40 years since Angola gained its independence from Portugal, and 13 years since the end of the civil war. Approximately 30 percent of the population still lives below the poverty line. Though the country is extremely dependent on oil—90 percent of Angola’s nearly $10 billion exports come from the petroleum industry—peacetime has brought with it more opportunities than Pembele ever dreamed possible when we first met. Pembele “graduated” the CAE process, expanding his business operation. Like many other leaders, he continues to strive for a better future for himself, his family, and his country. Since I left Angola, I have dedicated my professional life to helping others perform at their best. Having the CAE experience as my foundation for business development, I returned to the United States and became an executive coach. Being able to take the lessons I learned in Angola and apply them across a spectrum of industries and realities is something that I continue to treasure.

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AROUND THE WORLD

E.U. MEMBERSHIP MEANS FIERCE REGULATIONS AND DWINDLING FUNDS FOR SERBIAN NONPROFITS Lauren Kienzle

oday, Belgrade is a diverse, contemporary city with pop-up restaurants and brick-walled cafes. But just 20 years ago, the idea of a modern Serbia poised for integration into the European Union was unthinkable. When Slobodan Milosevic came to power in the mid-1990s, violence among different religious and ethnic groups plagued the region. Gas lines stretched for miles, medications ran low, and violence weakened the region’s infrastructure and economy. In Belgrade, the city’s historic café culture quieted as people stayed indoors, avoiding the military police on the hunt for draft dodgers. NATO bombings of Belgrade in the late 1990s, intended to induce the end of the Milosevic regime, only added to the uncertainty. On October 5, 2000, nearly 500,000 protesters took to the streets of Belgrade to oppose the results of an unlawful elec-

tion. They managed to oust Milosevic, who stood trial in 2002 at the International Criminal Tribunal for war crimes, including genocide and crimes against humanity. In jarring contrast to the rest of the city’s renaissance, the remnants of the former Yugoslav Ministry of Defense, cratered by the NATO bombings in 1999, still stand in the city’s center. Serbians refer to the years of war under Milosevic as “the bad years,” but they are quick to point out how things have changed since then. Though Serbians will never forget their storied past, they are ready for a better future. n 2003, the country’s new leadership began to negotiate the country’s pathway to membership into the European Union. By 2008, Serbia was on its way to full E.U. membership with a Stabilization and Association Agreement. This first step provides some of the benefits of E.U.

membership, including freer access to European markets. In exchange, Serbia was required to fully cooperate with the International Criminal Tribunal for the former Yugoslavia. Four years later, the country was confirmed as a candidate for full membership. To secure this, the country must reform labor laws, curb corruption, and generally bring its policies Photo: Brums2009 | CC BY-SA 2.0

more in line with the standards of the European Union. Though membership is expected to bring substantial economic benefits, it also has some less obvious drawbacks. nder new leadership, the country’s isolation from the international community ended. Many NGOs, which had previously been persecuted for their focus on democratization and human rights, began to expand their activities, providing vital services that the fledgling government struggled to offer. Over the past 20 years, the NGO community in Serbia has continued to grow with the majority of its funding has come from EU grants. Today, Serbia’s strong civil society continues to play a critical role in improving the quality of life for the nation’s most vulnerable people. But access to that support is quickly coming to an end. As Serbia moves closer to EU integration, a decline in funding from both the EU and other multilateral donors threatens the country’s thriving social sector. According to ForeignAssistance.gov, assistance from the United States has been reduced by close to 70 percent in the past 5 years, from $54.8 million in 2010 to only $16.5 million planned for 2015. Once, organizations like USAID, GIZ, and international NGOs were important donors, making grants for democratization and post-conflict projects. Today, they view the country as a much lower priority and are directing their funds

elsewhere, leaving many of Serbia’s young grassroots groups searching for new resources. Beyond declining funding, EU integration poses additional challenges for Serbian NGOs, including more stringent regulations and due diligence requirements that organizations must meet to be eligible for government grants. Higher compliance standards may be easily met by larger groups but present challenges for smaller grassroots organizations. The EU also focuses its funding on specific technical and service-oriented programs, which narrows the types of organizations that can apply for grants and further shrinks the opportunities for other organizations that may not match this focus. Increasingly, these groups are looking to fill the gap with support from international and domestic companies that can support local nonprofits with their time, talent, and funds. The Ana and Vlade Divac Foundation was founded in 2007 by former NBA All-Star Vlade Divac and his wife to help care for and economically empower refugees. When it began, the Foundation received almost 80 percent of its income from government grants. But five years ago, they decided to focus on private-sector donors and individuals. The Foundation recognized that it could benefit from the business community’s acumen and best practices. They are

In jarring cont rast t o t h e rest of t he ci t y’s renaissance, t h e remnant s of t h e former Yug osl a v Minist ry of Defense, cratered by t he NATO bombing s in 1 9 9 9 , st ill st a n d in t he cit y’s cent er.

currently hosting a team of three IBM Corporate Services Corps participants who are updating and streamlining the Foundation’s budget systems. The Foundation has also taken advantage of a capacity-building grant from the U.S.-based Mott Foundation to expand its ability to fundraise and to strengthen donor relations. Ana Koeshall, the Foundation’s director, says it can be more timeconsuming to build personal relationships with private donors, but it’s essential given the increasing withdrawal of more traditional multilateral donors. And, she acknowledges, she has it easier than others. “Divac Foundation is somewhat unique in that it is a private foundation with a famous founder,” she says. “So its brand is easier to understand for private-sector or individual donors.” Neven Marinovic, the Director of SmartKolektiv, a group that promotes corporate social responsibility by applying business strategies to social problems, says that nonprofits are struggling to meet the requirements of this new reality. “The problem is from both sides,” he says. “Civil society organizations aren’t communicating in a way that is usable for businesses, and businesses don’t see an incentive to invest more meaningfully in a partnership.” In some cases, NGOs are perceived as anti-government, a legacy of their persecution under Milosevic, who painted them as CIA-funded, anti-Serbian groups. Though the war is over, those reputations haven’t faded. This presents a barrier to partnerships with companies that might otherwise be interested in supporting their work. However, he does see a gradual trend toward private-sector involvement in social-impact organizations. For one thing, civil society is much more diverse than it was during the 1990s, meaning companies wary of anti-government organizations can more easily identify a non-political group. Nonprofits are also becoming more innovative and capable of interacting with businesses. For example, some social enterprises meld social impact with making a profit, which might appeal to businesses. Finally, Neven says, the private sector has realized the need for partnership to achieve

social progress. “Businesses are fed up with central government partnerships and ministries,” he says. “So, they do not just turn to civil society organizations, but also public institutions to help get the job done.” Biljana Djordjevic of the Trag Foundation agrees. She sees an increase in local companies looking for a strategic way to engage with their communities. Trag, a group launched to support Serbia’s democratization during the NATO bombings, realized an opportunity to help companies understand that corporate social responsibility can be a sustainable model of doing business and help create long-term community relationships. They have already helped one company create a local corporate volunteer program. Djordjevic says that nonprofits and businesses also tend to “speak different languages”—businesses focus on the bottom line, while social sector organization are more concerned with sustainable impact. The Trag Foundation is currently helping nonprofits communicate and articulate their impact in a way that can be better understood by the private sector. To meet the funding gap, all nonprofits are going to have to get better at this kind of communication. Serbian law is not designed to encourage business partnerships with local nonprofit organizations, and while strategic corporate philanthropy is becoming more common, Djordjevic noted, it will not fill the gap left by withdrawing institutional donors. EU integration will open up new funding opportunities specifically focused on sophisticated, established groups, forcing grassroots organizations to explore other options. As Serbia moves toward full EU membership, groups like the Divac Foundation, SmartKolektiv, and the Trag Foundation, as well as a growing number of socially-minded companies, will play an important role in sustaining Serbia’s civil society. By fully embracing the new realities of EU membership, Serbia’s social sector can ensure the country’s continued economic growth and its sustained political stability for years to come.

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BD is helping women in developing countries achieve widespread access to state-of-the-art cervical cancer diagnostic technology and providing healthcare workers training and education on fundamental cytology skills. Named one of the World’s Most Admired Companies ®2 as well as one of the World’s Most Ethical Companies®3, BD was also awarded the CEO Cancer Gold Standard™ Accreditation for its commitment to reduce cancer risk. BD – Helping all people live healthy lives.

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The Four Leadership Lessons Every Change Agent Needs to Learn DEFINING A LEADERSHIP MODEL THAT TRANSCENDS CULTURES

Madeleine Blanchard

s an international leadership coach, I am familiar with hundreds of leadership models and know there are many ways to define “leadership.” A Google search for the word yields hundreds of millions of results. Missives have been spoken and written on the topic by the likes of Mahatma Gandhi, Abraham Lincoln, Winston Churchill, and Ernest Shackleton. Peter Drucker, Ken Blanchard, Jim Collins, and Peter Senge (and many, many others) have all conducted extensive research on what makes an effective leader. New leadership gurus, it seems, are crowned every day. That doesn’t mean, however, that there are no universal principles. In 1993, the cultural anthropologist Dr. Angeles Arrien developed a new leadership model that provides clear guidelines for effective behavior across cultures and circumstances. Her theories are outlined in her book The Four-Fold Way: Walking the Paths of the Warrior, Teacher, Healer, and Visionary. For her research, Arrien lived among indigenous peoples and studied how change-agents drew their power and wisdom. She found that no matter what their culture—peace-loving or warlike, matriarchal or patriarchal, agrarian or nomadic—all effective leaders followed

the same four principles: 1. Show up and choose to be present 2. Pay attention to what has heart and meaning 3. Tell the truth without blame or judgment 4. Be open to outcomes, not attached to them These four principles have guided my own leadership and coaching style for more than 20 years. They provide an effective foundation for those who wish to build personal authority, be more effective with groups, and increase their followership—and they have astonishing staying power. Most effective leaders find little inspiration in competency models that focus on helping leaders overcome their own weaknesses. Even strength-based models tend to offer leaders a laundry list of behaviors that are overwhelming and hard to prioritize. This model, in contrast, works regardless of language, corporate culture, or cultural background. It offers straightforward, simple principles that are easy to remember.

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LEADERSHIP On hard days, if there’s just one thing leaders can do to shift their energy, it should be to choose to be present.

Pay Attention to What Has Heart and Meaning

Good managers pay attention to their people. They take the time to notice and reinforce when things are going well and acknowledge when things are hard. Check in with a simple “How are you doing?” and then listen carefully to the answer. This isn’t hard to do and it doesn’t take much time, but such attention is invaluable. Paying attention to “what has heart and meaning” means first understanding our own personal conviction and then listening for and understanding the same thing in others. In her book, Arrien writes: “Where we are not strong-hearted is where we lack the courage to be authentic or to say what is true for us. Strong-heartedness is where we have the courage to be all of who we are in life. The word ‘courage’ is derived from the French word for the heart, coeur, and etymologically it means ‘the ability to stand by one’s heart or to stand by one’s core.’” For a leader, the questions this prompts are many:

Show Up and Choose to be Present

Arrien argues that choosing to be present is a way of extending respect. The word respect comes from the Latin word respicere, which means “the willingness to look again.” By being present, a leader agrees to take a new look rather than staying stuck in one view. In this way, a leader listens with the intent of being influenced rather than listening as a way to gather data to build an argument. This requires the discipline of detachment and flexibility to turn away from distraction and pay attention to what matters. The concept of choice in this first requirement is an important distinction. Even in the face of innumerable external distractions, a leader can always choose to be present and pay attention. To assess yourself as a leader on this fundamental practice, consider the following questions: •

Do I choose to stop what I am doing to simply be present?

•

Do I consciously turn away from my myriad distractions?

•

Do I show respect through my willingness to take another look?

•

Do I know what is true for me? Do I know what is true for the person I am talking to?

•

What am I willing to stand by? What are others willing to stand by?

•

Am I paying attention to what has meaning that is not being said?

•

Am I saying all that needs to be said at any given moment?

Listening with the heart is a subtle action, but one that creates a strong foundation for a really healthy working relationship.

Tell the Truth Without Blame or Judgment

Telling the truth seems easy enough—until, of course, it isn’t. Being fully honest means being open to judgment, and considerate of the circumstance. Being honest does not mean telling the truth at all costs. The outcome must be worth it. Arrien writes: “Communication that carries integrity always considers timing and context before the delivery of content. . . . Direct communication—giving voice to what we see without blame or judgment— means we must consider the alignment of appropriate word choice, tone of voice, and body posture.” An effective leader must be direct in stating the truth, practicing detachment, objectivity, and use of a neutral voice (one that doesn’t carry emotional weight) in order to effectively “tell it like

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The New Global Citizen | Summer 2015

it is.” Some leaders, especially humble ones, can be a little skittish about designating themselves the one with enough information, intelligence, and authority to tell the absolute truth. Often telling several different possible truths at any given moment can work better—unless the truth is staring you in the face and there is no equivocating, which is rare. Leaders may ask themselves: •

Have all angles been considered?

•

Am I saying everything that needs to be said?

•

If not, what is keeping me from doing it?

•

How can I do so appropriately?

Leadership is the ability to display courage in times of trouble, to envision direction and change, and to create an environment in which all may flourish. Human beings the world over will respond positively to people who are wise, grounded, and care deeply for their people.

One aspect of telling the truth without blame or judgment requires a level of authenticity which in turn requires that leaders reveal themselves. But the degree they do so will depend on the surrounding culture. Some say such openness should be very calculated and measured. Others say that it is easier to build trust when leaders “let it all hang out.” Each leader will have to experiment and decide for themselves, but in doing so, there are again some universal principles. First, leaders must reveal enough of themselves to be relatable to those they lead. They must be willing to express vulnerability, sadness, or joy as is appropriate to the situation. Leaders can and should show emotion—both positive and negative—but they must also exhibit an observable demonstration of self-control. Secondly, a leader should never publicly show contempt or derision for a follower. This rule holds true across cultures: a leader may give positive feedback and praise in front of others or privately, depending upon the situation and the individual, but should always give negative feedback, criticism, or correction in private. Finally, leaders are called upon to pay attention and respond to a massive amount of incoming information, so it makes the most sense to choose to respond to what has heart and meaning—to explore and expand on ideas that will make the most emotional impact.

Be Open to Outcomes, Not Attached to Them

In American football, sometimes the quarterback calls an audible. He goes up to the line of scrimmage, sees the other team in a position he wasn’t expecting, and then adjusts by unexpectedly calling a new play. In business, a leader has to be willing to do the same thing, deciding on a shift in strategy at the last possible second after seeing all options and obstacles. Leaders often emphasize the importance of setting up accountability and support, then applying fierce discipline to achieve the ends in mind. We set “SMART” goals that are specific, measurable, actionable, reasonable, and time bound, then break down all the needed actions and apply ourselves. We go, go, go, and we grit our teeth and thrash around when things don’t go the way we want. And through that action we get information—facts that inform us of what is real, and somewhere along the continuum between “stop right now, this is a terrible idea” and “this is exactly right.” To stay open to outcomes, it’s important to recognize that sometimes we set the wrong goal. And if we pay attention to the information coming in, we might find something more effective—more magical—than the goal we had previously set. So a leader has to be open to the notion that something could come along that’s an even bigger priority than the earlier goal—and be prepared to call an audible. Leaders need to continuously check themselves: •

How important is the goal?

•

Is the cost too high?

•

Is this (still) the right thing?

You can decide what you want to create, but nothing is going to work properly if your desire is out of alignment with what the world, your customers, the economy, or the markets are telling you. So you have to listen and look for signs. They are always there. We can’t expect leaders to constantly monitor themselves on how they rate on competency scales. But we can provide them with these four basic steps to use as a code—knowing that if they work hard to stick to them, they can’t go too far off course. Leadership is the ability to display courage in times of trouble, to envision direction and change, and to create an environment in which all may flourish. Human beings the world over will respond positively to people who are wise, grounded, and care deeply for their people. Arrien’s research indicates these four practices—being present, attending to heart and meaning, telling the truth without judgement, and being open to outcomes— can substantially contribute to a leader being perceived as thoughtful, authentic, and powerful. With leadership principles that effectively transcend cultures, leaders are better prepared to forge the right strategies and reach a critical mass of support to make the most meaningful impact.

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HAPPENINGS

CAN SHARED VALUE SURPASS THE PROMISE OF CSR? The Creating Shared Value Movement Reaches an Inflection Point D eirdre White and John Holm

ver the past five years, the world of CSR has shifted. Where once “conscious capitalism,” “the triple bottom line,” and “blended value” were seen as the harbingers of a new era, today these flashy buzzwords and trendy themes representing “catalytic change” and a “seismic shift in social change” are increasingly received with cynicism from an audience demanding authenticity and transparency in the form of tangible social change. In this context, the Creating Shared Value movement, an effort to unite the public, private, and social sectors for profound change has reached a pivotal point. Spearheaded by Michael Porter and his consulting firm, FSG, the movement will either reach transcendent success, or become the next buzzword, overpromising and underperforming on its intended mission. For decades, C-suite executives, consulting firms, thought leaders, and leading academics have been trying to solve the precarious riddle that businesses can create real shareholder value while also solving real social problems. In the proper context, many view shared value as the answer to this challenging equation. Shared value, as defined by FSG, is the idea that business

can create both profitable businesses and tangible social impact simultaneously. Many companies are demonstrating that this can be achieved. At the fifth annual Shared Value Leadership Summit in New York earlier this month, business leaders in energy, finance, pharmaceuticals, fast-moving consumer goods, and countless other industries gathered to share stories of how they make shared value work for their businesses. Sessions addressed a wide range of topics, including identifying and tackling social issues, solutions to youth unemployment, the role of the investor in shared value, and climate-smart agriculture. Many of the stories were truly inspiring, and most of them relied heavily on partnerships crossing the private, public, and social sectors. Lots of the right words were said and promptly tweeted: “growing inequality is a threat to business,” “complexity is not an excuse for complacency,” “the money I make should be equal to the value I bring to others,”and “values and models are shifting.” It was hard to listen without feeling that the world is changing, that business is accepting that it must have a different role in society, for a better world, shepherded in

by innovative partnerships among institutions committed to mutual benefit. At the same time, as we participated and constantly debriefed over the course of the two days, we found ourselves increasingly questioning how real the idea of shared value is and how much potential it has to change the status quo. While it is unquestionably a good thing that some corporations are focused on creating social value in addition to business value, we found a disconnect between the right hand of a business conducting a shared value approach, while the left hand was engaged in the old model business practices, in many cases creating societal damage. For instance, how should a company that is seen as a shared value leader for its responsible sourcing and support for local farmers be judged for simultaneously advocating for privatization of water? Is it acceptable for the world’s biggest banks to claim shared value for their work in enhancing financial literacy while they slowly slip back into many of the practices that led to the 2008 economic collapse? If a large retailer is investing heavily in improving the quality of education in the communities surrounding its stores, should consumers overlook that it is not paying a living wage

to its employees? Is it acceptable for the extractive industries to and government—represent the very same organizations as last tout their shared value achievements in the health arena, while year and the year before. If each year it is still the same 75 or 100 doing nothing to innovate on renewables? companies that are developing shared value strategies, it won’t The positive impact of improved solutions and honorable inten- be possible to address the world’s most pressing challenges as tions of those who have bought into the importance of creating comprehensively as is needed. The challenges are too big—and shared value is undeniable. too urgent—for shared value However, as leaders in the to continue to be a boutique social impact community, we product. are obliged to ask, “Is shared Certainly, we were not If each year it is still the same 75 or 100 value enough?” Clearly, the the only two people who companies that are developing shared value answer is, “No, not as it curhave these questions and strategies, it won’t be possible to address rently stands.” In order to be thoughts, and the leaders the world’s most pressing challenges as truly effective, shared value of the Shared Value Initiamust be intrinsic and intetive readily admit that these comprehensively as is needed. The challenges grated throughout the organiare some of the tough issues are too big—and too urgent—for shared value to zations which espouse it, lest it needs to take on. No one continue to be a boutique product. it be seen as a way to detract expects the corporate world attention from their less sato change overnight—the vory practices. Shared value achievements on the shared needs to go deeper within value front should be held up the corporations that claim to be the best in class. as examples of how the role of business in society is evolving. At the same time, the practice needs to go broader. While At the same time, if the shared value champions don’t start askthere is more buzz about shared value, and better understanding ing the tough questions, the initiative risks being perceived as of what it is, the number of new entrants into the space seems “shared-value-washing,” which would be a loss for both business rather anemic. The Summit participants—from business, nonprofits, and society at large. Image: Shared Value Leadership Summit 2015

Three Ways Companies Build Better Leaders with Global Pro Bon0 THE BEST BUSINESS LEADERS KNOW THE VALUE OF GLOBAL SERVICE Amanda MacArthur

ending senior executives into emerging markets may not be an obvious way to develop strong leaders, but many top companies are doing just that. Once-marginalized markets in the Global South are quickly becoming critical revenue drivers for corporations. Business leaders with a nuanced understanding of how these markets operate can be the difference between a business’s stagnation and its continued growth. Yet emerging and growth markets can seem opaque to many executives who have spent their careers in more established markets. That’s why travel is so critical—the lessons learned on-the-ground in growth markets can prove vital to understanding consumer needs and demand in the future. Travel abroad has long been recognized as a way for students to expand their horizons. But in the business world, work-related visits often insulates the traveler from their local environment. Executives stay in international business hotels that could just as easily be in Cleveland as in Mumbai. They are transported from their hotels to modern office buildings by private drivers and order hamburgers from room service for dinner. Meanwhile, local consumers are traveling by rickshaw, drinking masala chai from street vendors and confronting marketplace realities a global executive would never see. According to Bloomberg, the world’s fastest growing economies in 2015 are China, the Philippines, Kenya, India, and Indonesia, all of which forecast annual growth rates higher than five percent.1 While it is increasingly possible to hire strong local talent in each of these countries (as it is in most emerging markets around the world), a multinational company still requires leadership that understands the differences between American and foreign markets. Failure to do can come at great cost, as General Motors quickly 1

learned after launching the Chevrolet Nova in Latin America. In Spanish, no va translates as “doesn’t go.” For reasons that would have been obvious to a business leader with an understanding of the local market, the car didn’t sell and was quickly discontinued. Global pro bono programs—which allow employees to engage their professional skills for a period of weeks or months within social-sector and government organizations—are an increasingly popular way for companies to introduce personnel to emerging markets at the ground level. Participants in programs like IBM’s Corporate Service Corps, SAP’s Social Sabbatical, and GSK’S PULSE program come back from their experience reporting an increased ability to understand client needs, a business’s role in society, and a culture more generally. An employee base with a global perspective is critical for the long-term health of the bottom line. But without a similar experience for senior leadership, opportunities may be missed in the short-term. Global pro bono programs are generally not available to senior executives who are simply unable to be away from their responsibilities for an extended period of time. Companies have provided senior executives with a “groundlevel” glimpse of emerging markets through visits abroad and brief meetings with high performing social entrepreneurs, lead-

Robinson, J. (2015, February 25). The 20 Fastest-Growing Economies This Year. http://bloom.bg/1SCt7Vt

The New Global Citizen | Summer 2015

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GLOBAL PRO BONO ing NGOs, or relevant government agencies. While such trips do provide some insights into new markets for participants, they are often missing a critical component—linking the experience and learnings back to the company’s core business. Because they are not asked to engage their professional skills, there can be a tendency not to think about what they are observing and hearing through a business lens. Developing living case studies—through which executives travel to an emerging market and utilize their professional skills in the service of a stated challenge (often posed by an NGO)—facilitate both experiential and professional learning objectives. Making the projects team-based and spending the time up front to work closely with the local client organization to develop the project and to prepare the team allows for a meaningful engagement to be undertaken in as little as five business days. Pro bono-based executive development programs enhance participants’ leadership courage, strategic and systemic thinking, and marketplace knowledge by exposing them to new and often challenging environments. Yet, successful programs are harder to design and execute than they seem. Finding the right partner, emphasizing local insights and stakeholder engagement, and creating structured opportunities for reflection are critical to a program’s success.

Find the Right Partners

Companies with global pro bono programs consistently report that partnerships—both internal and external to the company—are key to success.2 The same is true for programs that target executives. While most executive development programs are housed in the human resources department, adding a global pro bono experience provides the opportunity to partner with the company’s corporate social responsibility team. This enables participants to explore the social value of business as a strategic asset. The most successful projects provide the opportunity for executives to actively engage their professional talents while learning something new about their operating environment. It is critical to select the right external partner that can serve as the living case study. The selected organization should have a mission that engages the company’s consumer segment and deals in similar

Pro bono-based executive development programs enhance participants’ leadership courage, strategic and systemic thinking, and marketplace knowledge by exposing them to new and often challenging environments.

issues, such as health, technology, or education. By ensuring the alignment of mission and issue, executives have the greatest opportunity to capture insights that can inform their own future business decisions.

Strive to Develop Local Insights Through Effective Stakeholder Engagement

Working collaboratively with a team of their peers in the field under difficult circumstances, executives find practical opportunities to reflect, take on new roles, and see the market from new vantage points. Walking through open-air markets to learn about consumer purchasing preferences, speaking with patients with non-communicable diseases at community clinics, examining agricultural supply chains, and discussing infrastructure and funding challenges with government officials contribute to a deep understanding of the needs of a particular market. In contrast to programs that simply ask participants to visit and observe, a program with a pro bono component actively engages professional skills, forcing participants to wrestle with local realities while delivering business value. The depth of a pro bono engagement affects participants at a deeper level that each carries back to the business. Perhaps the most important aspect of an executive program is the opportunity to actively engage with a local community, espe-

Corporate Global Pro Bono: The State of the Practice, PYXERA Global, 2014

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The New Global Citizen | Summer 2015

Designing an Executive Leadership Program •

Find the right partner(s)—not all initiatives are well-suited to an executive engagement; ideally, the partner’s purpose should align with the corporate strategy and the CEO’s interests. •

Have a goal for the experience—a “road show” to projects will be impactful, but having the participants personally engage their professional expertise as well will help to tie CSR back to business objectives.

•

Be mindful of the limited time available to senior leaders to be engaged; design experiences to be mindful of their broader commitments and prepare the organization for the additional workload.

•

A little bit of time spent on preparation with the participants will go a long way to making the experience even more impactful—set the stage in advance so significant time is not spent answering basic questions.

•

Design the experience so that the senior leaders have an authentic view of the community/issue you are engaging with.

•

Internalization comes from reflection, make sure to include time and space for this both during the experience and after it is completed.

cially stakeholders at the bottom of the pyramid, to understand their needs and aspirations, if only for a moment. Beyond market insights, experiencing the realities of everyday people—not just the local business elite—encourages participants to stretch their listening and observational skills. Meeting with social entrepreneurs, businesspeople, and government officials will certainly provide great business insight. However, if executives are asked to assess how an NGO can better meet the healthcare needs of rural farmers in Rajasthan, India, meeting with those farmers directly can help them understand how to improve an NGO’s operations, but also why those farmers make other decisions. The average consumer becomes a real person, not just someone seen from the backseat of a taxi.

Internalization Comes From Reflection

For the experience to be truly impactful, it should not end once a participant steps off the plane or presents their findings. The best programs provide opportunities for participants to reflect during the experience, at its conclusion, and even several weeks or months later. Doing so can also help to reframe the experience through a business lens. Some companies have an executive coach travel alongside the team to assist as they seek to internalize what they are seeing, hearing, and experiencing. It is also helpful to have a third-party guide who can provide objective context on the intricacies of the local environment. As business landscapes continue to change globally, the demands on senior leaders similarly expand. Introducing a global pro bono component to talent development provides executives with the insights to adapt their perspective to diverse challenges in order to improve business outcomes and human well-being around the world. No company, government ministry, or NGO can effectively address global challenges on its own. Rather, progress requires partnerships across sectors. With greater understanding of the realities of emerging markets, senior executives are better prepared to create meaningful and sustainable initiatives that more effectively grow the business and improve lives.

“This is my office.” Jessica Custer, an MBAs Without Borders Advisor in Kerala, India, brainstorms with the Kara Weaves staff on ways to integrate the natural beauty of Kerala into the design of local artisans’ handwoven products to reach more consumers in new markets. MBAs Without Borders sends business professionals into frontier markets to utilize and adapt the latest management tools and techniques to fuel economic growth.

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The IDEAS Global Challenge Enables the Inventions of the Best and Brightest PASSION, SMARTS, AND MENTORSHIP DRIVE INNOVATIVE SOLUTIONS THROUGH MIT’S IDEAS GLOBAL CHALLENGE

he IDEAS Global Challenge is both a sustainable solutions competition and a mentorship program. Over the course of a year, teams develop an innovation plan. The winners of the challenge—approximately 10 teams

each year—receive an additional 15 months of guidance. In the past 14 years, 117 teams have developed solutions to major health, education, and energy challenges, among other issues, which have been deployed in 43 countries. Most impressive, over 50

Christian Bartley percent of the winning teams have turned their proposals into companies still in operation today. My first exposure to this program came in 2011, when I was asked to judge. Having served on panels at a variety of other Photo: MIT IDEAS Global Challenge | Wen Zeng

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HAPPENINGS Beyond their passion, students were also eager to learn, genuinely curious, and open to areas of improvement that they had not thought of. As judges, we were all surprised when we posed a challenge they had not thought of, the students consistently responded by asking us for advice, rather than trying to make up an answer.

Framing the Challenge

St ude nts pre s e n t their pro j e c t s at t he 20 1 5 MIT I D EAS Gl o bal Challeng e I nno vat i o n Sho wcase. competitions from university level to Ernst & Young’s Entrepreneur of the Year program, I thought I had a fairly good idea of what I was going to see. I was wrong. The power of the MIT IDEAS Global Challenge, run out of MIT’s Public Service Center, comes down to three factors: passion, technical expertise, and mentorship. Of course, students at MIT have no shortage of intelligence and creativity. More powerful than any one idea, however, was the driving force behind each of their projects, the passion to address a critical need, and the drive to provide a workable, scalable solution that truly makes a difference.

The program begins with a Generator Dinner, an evening event attended by 200 students who have an idea or skill they’d like to share. Those with ideas have one minute to pitch the problem they would like to solve. At the event I attended, a few students proposed ways to use infrared satellite imagery to help identify risks to vulnerable populations. Others had the skills to make this vision a reality. By the end of the night, a diverse team of people with backgrounds in visual arts, engineering, urban planning, computer science, and venture capital had come together to address the challenge. Today, OpenIR is deploying this technology in Indonesia to help with flood mapping, and is beginning to expand into other ecologically vulnerable areas, as well. Once a team is formed, they submit a scope statement to the IDEAS staff for review. If selected, the team is now part of the program. Over the next several months, they are mentored by IDEAS staff, who connect them to people around the Institute and beyond. MIT alumni and the companies that support the IDEAS Global Challenge also play a critical role in this phase as mentors, expert resources, connectors, judges, and of course program funders. The “speed mentoring” session, one of the most interesting components of the challenge, brings fifty senior Bose executives and engineers to MIT for one day. Each team has one minute to pitch the global challenge they are working to solve and where they need the most help. The Bose leaders assist the teams they think they can help the most, rotating for a few 20-minute sessions. Brian Mulcahey, the Director of Emerging Business at Bose, helps coordinate the event. “None of my colleagues had experience in industries like farming, sanitation, and water quality,” said Mulcahey, “yet they were amazed at how relevant and transferable their Bose experiences were in helping these incredible students.” In many respects, he said, the insight from the event goes both ways. “We got as much out of the event as the students did.” Finally, there is the competition. But like every component of the IDEAS Global Challenge, the judging process is another opportunity for mentorship. Judges offer advice and guidance in their notes, which are then shared with the teams. In addition, the judges meet in person with teams at the Innovation Showcase, an

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evening poster session where they are encouraged to ask questions and offer their expertise. Winning projects are announced at an awards ceremony a few days after the poster session. A month later, the winning teams attend a retreat. There, mentors from both MIT and supporting organizations help the victors further develop their projects, addressing topics like financing, communications, strategy, and operational planning. The winning teams are given the guidance they need to succeed at both implementing their solutions, and also building the organizational structures needed to support those solutions long term.

The Challenge Makes an Impact While not all projects continue for the long term, about 50 percent of the teams that come through the program continue to advance solutions that are making a difference. One that I had the privilege of judging early was Wecyclers, a solution to help encourage recycling, improve health, and create jobs in Lagos, Nigeria. Founder Bilikiss Adebiyi-Abiola, an MBA student, worked with one of the labs on campus to design an inexpensive tricycle with different receptacles to hold different types of recycled materials. She worked with the local government in Lagos to create a system whereby the “wecycles” can go from house to house collecting recyclable materials. Households are rewarded with redeemable points based on volume and quality of what is collected. People who used to troll garbage dumps can now ride the wecycles, generating income for themselves in a safer and healthier manner. Not only has Wecylers met their original goal, they’ve surpassed it. The company is still in operation today, and it’s growing. Wecyclers has over 80 employees and the Nigerian government wants the company to grow faster. Bilikiss was also recently featured in Fast Company magazine as an entrepreneur who is leading change in a unique way.

Another IDEAS Global Challenge team, Essmart, has created a cost-effective method to distribute technologies like solar lanterns, portable water purifiers, and minimal smoke cooktops to rural southern India. Today they reach 32,000 people through a network of 1,000 rural shops. The founders, Diana Jue and Jackie Stenson, were selected for the 2015 Forbes “30 Under 30” list. I have now been involved in the MIT IDEAS Global Challenge for nearly five years, and am continually impressed—by the students, the staff, the process, and the companies who support the program. From Dow to Qualcomm to GE Healthcare, from the World Bank to USAID to the Embassy of Belgium, this is a program that engages the best of the best. One of my fellow judges, Danny Thomas, who is the associate general counsel for international trade compliance at Emerson, recognizes that the program’s value is not just the solutions the teams produce, but the innovation immersion it provides for future high-potential leaders. “How can you not be impressed and feel like you’re helping make a difference? You meet and read projects by motivated people developing innovative solutions to address complex issues that really matter. Yes, some of these projects will make a difference over the long-term,” he said. “But all of these students will be making a difference over the long-term.” With the experience of creating innovative solutions to tough challenges under tight deadlines with resource constraints, MIT students come through the IDEAS Global Challenge having learned, having innovated, and having made a difference. These are students who understand through their unique experiences the nexus of passion, innovation, and social sustainability. They have the skills, the network, and the resilience to try, fail, and try again, ultimately contributing to a web of innovation that transcends borders and disciplines to change the world, one solution at a time.

Photo: MIT IDEAS Global Challenge | Wen Zeng

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I believe in God, The maker of heaven and earth And myself. The whole world stinks But I am beautiful, I am gorgeous, I am divine.

hese words were repeated out loud before every performance of Dougla by the Dance Theatre of Harlem (DTH). The ballet, created by Geffrey Holder, depicts the marriage of African and East Indian cultures in Trinidad. In September 1992, I stood on stage with 25 other dancers at the Civic Theatre in Johannesburg, South Africa, dressed in

Holder’s stunning costumes. DTH was the first performing arts company to break the 30-year cultural boycott imposed on South Africa by the international community for its apartheid practices. There was a heightened sense of presence, the moment before an auspicious occasion. I can still remember the opening trills of the flutist. I do not consider myself a religious person, but Holder’s chant imbued those performances with a sense of ritual. In that moment, each member of the Company truly “represented something larger than ourselves,” a favorite saying of DTH founder Arthur Mitchell. This, coupled with Mitchell’s larger-than-life vision for the transformative power of the arts, filled me with a profound sense of purpose and strength that night. A ballet company was changing the world!

In breaking the cultural boycott, DTH had the chance to christen the new Civic Theatre. We danced in front of its first multi-racial audience, with a multi-racial orchestra and black conductor. To make the occasion even more monumental, Nelson Mandela was in the audience. For a South African artist like me, few moments compare to the deep honor and reverence I felt that night. In the five weeks leading up to the performance, the company spent time teaching, holding workshops, and interacting with dance students, artists, and sponsors in every corner of the country. We visited townships where black children danced barefoot on concrete floors and white academies where tights and ballet shoes on sprung floors were the norm. I was struck by how quickly the universal language of

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CITIZEN DIPLOMACY

DA NC E D IPLO M AC Y: Co nne c ti n g t h e Gl o b a l H u man E x pe r i e n c e T h ro u g h D a n c e

Pe r f o rma nce Po wer s Pe opl e -to-Pe opl e C o nnectio ns Aro und the W orl d making and sharing art connected us to one another. Though rhythm and gesture meant different things to different people, somehow they plucked the hidden strings within each of us, enabling us to effectively communicate. This was not a revelation, only a reminder of the transcendent power of dance. I had graduated from the University of Cape Town Ballet School a few years earlier and experienced what it was like to be fully immersed with students of all races. How quickly we bonded over the thing we loved: dance. While at the University of Cape Town, I taught ballet in an outreach program started by the Companyâ&#x20AC;&#x2122;s artistic director, David Poole, in the neighboring Black African townships of Gugulethu and Langa. I experienced a tiny sliver of township life, not something many non-Black Photo: Dance Theatre of Harlem Archives

South Africans had occasion to do. In a country whose governance was built on race, the issues underlying our differences were always lurking. Yet, the experience of racial exposure at the school in the townships provided a window into what could be possible with racial integration, while the better part of the country was struggling with the violence and inhumanity of Apartheid.

Fostering Artistic Integration Across Cultures Four years after my groundbreaking tour of South Africa, the John F. Kennedy Center for the Performing Arts in Washington, D.C., commissioned a work for their African Odyssey Festival. Arthur Mitchell, South African DTH member Augustus Van Heerdan, and I choreographed South

Laveen Naidu

African Suite. The work was inspired by our 1992 experience and was set to the music of the Soweto String Quartet, four black South African men playing original compositions based on African tunes on European instruments. It seemed a perfect fit. As part of the choreographic process, we requested the musical scores. When they arrived, we were surprised to see that the five-line staff contained no musical notes. There were a few symbols at various intervals, but no way to understand the phrasing, time signatures, or tempos. We were scheduled to perform the ballet with live accompaniment by the Soweto String Quartet, who were to arrive a week before the premiere. Needless to say, our musical director was in a panic.

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It turned out, the absence of a score made the group even more in tune. The quartet had developed their own musical language. Only two of them had extensive formal classical music training, so they played together by ear. This did not mean that there was no structure, replicable model, tangible milestones, or any of those things many of us have come to expect from music. The quartet made extraordinary compositions because they understood each other and their own code, both literally and figuratively. The challenge in making a ballet with them was to learn to be mutually understood. Many people think of South Africa as a country divided between black and white. Really, it is a multi-layered mix of ethnicities, cultures, and backgrounds. It is home to more than a million South African Indians, like myself. By fusing music and dance styles, we were able to highlight some of that complexity and transform certain perceptions about what South Africa is, a representation of Nelson Mandela’s “rainbow nation.” To reflect this, we added an African conga drum and an Indian tabla to the score. The ballet was created en pointe, typical for classical ballet, but we also wove in elements of African dance, contemporary movement, and Indian classical dance. Working on South African Suite was a microcosm of the power of changing perceptions at a single point in time, a theme that continues to inspire me. Twenty classically trained dancers, a violinist, a violist, a cellist, a classical bass player, a conga drummer, a tabla player, three choreographers, not to mention costume, set and lighting designers, a conductor, a host of technicians, no score, and a world premiere coming up at the Kennedy Center in short order. This was a small production by ballet standards, but it contained all the ingredients for success or disaster. And it begged a thousand questions. Who should do what? Who can do what? How do people interpret the world? How do they communicate? Thankfully, the ballet was a rave success, delighting audiences around the world as part of the Company’s repertoire for several years. Though this was only one experience of integrating performance across cultures and media, I realized how important the mindset required to do so would be for so many successful undertakings.

Bridging the Human Experience Through Dance I soon realized the extent to which I would need to call on everything I learned in those moments of integrated creativity as I began my role as executive director of DTH, which comprises a school that trains students ages three to adulthood, standards-based arts education programs delivered in schools, and a professional dance company.

Discovering new connections takes courage and curiosity, and a willingness to explore the unknown. Though doing so can be both fun and frustrating, it is almost always worth the effort.

Following severe financial strain in December 2004, the organization was forced to lay off the professional company and shut its doors for seven weeks, and I was asked to lead the recovery. Balance sheets, income statements, cash flow, fundraising, marketing, facilities management, and board meetings all quickly became a big part of my daily existence. Changing leadership dynamics and broad external skepticism within the New York arts community added to an already highly stressful internal culture among students, dancers, and staff. Together, an extraordinary team of staff and supporters resurrected an iconic institution, culminating with the re-launch of the beloved DTH Company in 2012, which is again touring. Together with its school and outreach programs, the organization is inspiring audiences and changing

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The Dance Theatre of Harlem’s performance at the Civic Theatre in Johannesburg, South Africa, broke the 30 year cultural boycott imposed on South Africa by the rest of the world for its apartheid practices. Nelson Mandela was a member of this first multi-racial audience.

perceptions around the globe. Leading this resurrection was fun, frustrating, and fulfilling, a gift few ever receive. In its new incarnation, DTH collaborated with the Cameroon National Ballet, whose repertoire and dancers represent the 10 major provinces of Cameroon and their traditional dances, showcasing Cameroon’s rich and diverse heritage both at home and abroad. DTH Resident Choreographer, Robert Garland, spent a week in Cameroon immersed in the local culture and created beautiful work with CNB dancers that built on the traditional dances using western concert dance structure along with contemporary and ballet vocabulary. What resulted was a new and innovative way for the Cameroonians to communicate with a western audience. The work was performed at several high profile events in the United States including the NAACP National Conference and a cultural celebration in New York hosted by the Cameroon Minister of Arts and Culture and attended by a number of international guests. Each art form has a different way of igniting human connections. In 2013, the Company’s Artistic Director Virginia Johnson, commissioned a new ballet entitled Far But Close, in which a 24-minute dialogue between a man and a woman that begins on the New York A train. A piano and electric bass accompany a dance among two couples. The dance itself does not follow or literally depict the spoken word; rather the choreography, music, and words together with the dancers create a unique theatrical experience not Photo: Dance Theatre of Harlem Archives

typically seen in ballet. Immediately following the premiere and a standing ovation in Seattle, WA, an elderly African American woman, urgently approached me. She grabbed both my hands, visibly emotional. “You told my story,” she said. “I have waited for 80 years, and a ballet company told my story!” After a few minutes of conversation, I understood why she was so moved. It wasn’t that the story was explicitly hers, but that the nuance of the experience mirrored her own. The success of all three works depended in large part on the Company’s ability to develop a new language, a new way of communicating, both verbally and physically. As is the case for almost any successful creative endeavor, the artistic process is both fun and frustrating, filled with tension driven by deadlines, egos, personal insecurities, and different points of view. Each person involved focuses on developing mutual understanding, attuning to unfamiliar cues, deciphering differences in words and meaning, letting ideas marinate, developing and solidifying a shared vision, developing a clear execution plan, making critical decisions, and allowing the co-creation of the work to manifest. Yet, in most cases, a final product—a book, a movie, an iPhone—homogenizes the individual efforts that contribute to its realization. In live performance art, each individual action is preserved and repeated again and again in perfect synchrony, and each performance offers a different rendering of the same intent. The integrated human power in performance triggers an individual’s inherent cultural DNA and values, fostering people-topeople connections through one’s unique experience of each aspect of a performance. Discovering new connections takes courage and curiosity, and a willingness to explore the unknown. Though doing so can be both fun and frustrating, it is almost always worth the effort. With a more subtle common understanding of the world, its cultures, and its identities enabled by performance art, people can come together more quickly to solve problems, find solutions, and build common cause.

Harnessing the Superhero Power of Healthcare Innovation The International Partnership for Innovative Healthcare D el iver y Ca l l s fo r C o rp o ra t e I n v e s t m e n t a n d Ex pe r t i s e Maia Wagner

hen one thinks of comic book superheroes, colorful characters saving the world in spandex and capes come to mind. But one afternoon in Washington, D.C., I came across an entirely different kind of comic book champion: Nia. Nia, whose name means purpose in Kiswahili, is a friendly, motivated, adventurous student and the dynamic superhero created by ZanaAfrica, a social enterprisehybrid-organization that provides affordable sanitary pads and relevant health information to women and girls in East Africa. On the pink and purple pages of the comic book, Nia and her friends explain, in a fun way, what happens to a girlâ&#x20AC;&#x2122;s body during menstruation, providing advice, encouragement, and loads of information. At the International Partnership for Innovative Healthcare Delivery (IPIHD) Annual Forum, Megan Mukuria, the founder of Za-

naAfrica, explained why her project matters. In Kenya, 65 percent of girls cannot afford sanitary pads, which results in extended absences from school that hinder academic performance and limit future opportunities. The Nia comic, which will be distributed in sanitary pad back-to-school packets for young girls, is part of a larger effort by ZanaAfrica to create opportunities for women and girls to thrive as focused students, productive workers, and informed mothers. Mukuria, herself a visionary superhero, blew me away with her idea. But even superheroes need help. She explained that ZanaAfrica needs support in developing a long-term marketing, communications, and design strategy. The ZanaAfrica team works tirelessly on outreach efforts for all of their programs, but would benefit from input on how to scale their idea, brand the campaign, and deliver the product to have the greatest impact on women

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HAPPENINGS and girls in Kenya. How can our superhero package Nia’s message to reach the girls who need it most? IPIHD brought dozens of pioneers like Mukuria together with businesses who could help answer these questions. During the three-day forum, innovators, corporate supporters, foundations, investors, and global health leaders discussed investment opportunities and new solutions to major global health issues. Social entrepreneurs pitched impact investors and panels discussed topics like empowering women, strengthening regional health systems, and adapting new technologies. Throughout the Forum’s activities, one common thread shone through: the global health community lacks access to quality talent and expertise, which is restricting the scalability of new technology, products, and services. “We need more corporate investment in terms of expertise,” said Peter Gross, the Africa regional director of MicroEnsure, when asked what big changes are necessary for healthcare transformation. He explained that the global health community needs to learn from the Unilevers and Proctor & Gambles of the world and ask, “How do we get a bar of soap into everyone’s hands across the globe?” Groundbreaking innovations alone cannot reach all of the individuals in need. To have that kind of scale and reach, small businesses and social enterprises pioneering novel health approaches must collaborate with experts with critical expertise in delivery method, marketing and communications, supply chain, and more. The North Star Alliance, for example, builds health clinics out of shipping containers at transit hubs across Africa. Executive Director Luke Disney said that finding and training junior healthcare staff is one of the biggest challenges he faces. The potential for creating talent exists, and experts who can spark talent creation are available. How do we match these two groups together to foster quality capacity-building and sustainable access to talent? Global pro bono, or corporate volunteerism programs, have the ability to bring some of the world’s top business talent closer to the innovators on the ground. Professionals with skills and experience in business and operations lend those capabilities to organizations in underserved communities to address their core business challenges. For example, PYXERA Global, in partnership with

the Public Health Institute, supports the implementation of the USAID-funded Global Health Fellows Program II by matching corporate pro bono experts—Global Health Champions—with projects that reflect and directly contribute to USAID’s global health priorities. This direct link provides corporate professionals with the firsthand insight of health-related needs and opportunities around the world. And it helps NGOs build capacity and access talent. Many effective organizations and social enterprises around the world struggle to achieve optimal performance because they lack access to talented healthcare professionals. One such organization is Jacaranda Health, a company creating a self-sustaining and scalable chain of clinics to provide reproductive health services to urban women in Kenya. Jacaranda Health availed itself of two Merck employees from the Merck Fellowship for Global Health. The pair worked directly with the organization for three months in Nairobi, developing a communications strategy, which included creating a messaging platform and encouraging greater exposure and outreach of the Jacaranda model in the global health space. Both Jacaranda Health and the Merck participants emphasized the impact this project had on the current success of Jacaranda Health and on the participants, who now act as ambassadors for these types of corporate investments. The impressive network IPIHD has created will continue to encourage the collaboration of public, private, and social actors to invest in solutions that will bring lasting change to the world’s most pressing health issues. The 4th Annual IPIHD Forum reminded us all how important these types of collaborative initiatives are in bridging the knowledge and skills gaps that persist in the global health field. Through purposeful investment by global corporations, the healthcare industry can foster innovative ideas, allowing global health’s superheroes to improve the lives of many around the world.

The Nia com i c, dist ribu t ed b y Z anaAfr i ca , provides you n g g irls wi t h essent i a l h ea l t h informa t i on in a fun a n d int erest i n g wa y.

CAN LE G ISLAT ION FO RC E C O MPA NIES TO B E MORE R E SPO NSIBLE? The O pportunities and Challenges of Legislating S ocial G ood Alicia Bonner Ness

ecent studies have shown that many companies are giving more generously to social causes than ever before. Some, like Unilever, Coca-Cola, GSK, and others, have begun to champion the notion that social and financial profit can be achieved simultaneously. But even the most progressive companies often sideline social investment and corporate social responsibility, using them more to increase a company’s brand image and awareness than to generate real social return. In a survey of 26 multinational extractive companies, all but two said their company’s success depended on society, but most struggled to find ways to create a linkage between society and their business. The two biggest obstacles were corporate structure

and the challenge of quantifying opportunity and cost—essentially bureaucracy. Yet, even as social investment has risen, the amount most companies invest in social impact is well below one percent of net profit. Some governments have wearied of corporations’ inability to operationalize their commitment to meaningful social investment. Ghana, South Africa, and India—three of the world’s fastest growing markets—have legislated social mandates that force corporations to incorporate a minimum social impact contribution into their bottom lines. While CSR and local content laws hold promise of being able to deliver social value, they also come with drawbacks.

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IMPACT AND INNOVATION ment and employment benchmarks over a 10-year period. While the legislation allows companies some leeway in local hiring in their first few years of operation, companies are expected to meet 80 percent of their staffing and procurement needs locally within 10 years. Prior to the legislated requirements, oil companies tended to abandon their pursuit of local talent after a cursory search. Now, the legislation requires them to fill at least 10 percent of their supply chain locally in years one and two, reaching 80 percent local sourcing by year 10. It also requires that companies invest in developing talent where local abilities don’t meet demand. Likewise, business owners were previously frustrated with the lack of opportunity. Through a USAID-funded Supplier Development Program, local businesses are building their capability and improving their systems and processes to win contracts, increasing local opportunity. The legislation is part of a larger trend toward local content legislation in countries rich with natural resources. Equatorial Guinea, Kazakhstan, and Angola have all passed similar legislation, mandating the use of local suppliers in procurement.

South Africa BBB-EE Law Seeks to Overcome the Inequality of Apartheid Ghana’s Jubilee Oil Fields Inspire Local Content Legislation In 2007, Tullow Oil discovered West Africa’s largest offshore oil deposit. The subsequently christened Jubilee Oil Field is estimated to hold more than three billion barrels of light crude, extracted at close to 85,000 barrels a day. As oil extraction got underway in 2010, the Ghanaian government published recommendations that asked foreign oil companies to prioritize local sourcing. But a year after operations were up and running, few international oil companies had made progress towards the government’s ambitious recommended targets. Undaunted, the parliament took action, converting its recommended guidelines into mandatory legislation. The local content law, passed in 2013, lays out specific requirements concerning local ownership, local sourcing, and domestic employment. It requires oil companies to give locallyowned businesses preference in procurement, even when those companies aren’t able to offer the lowest price. In Ghana, foreign corporate entities are required to meet specific local procure-

Unlike Ghana’s local content law, South Africa’s Broad-Based Black Economic Empowerment law was designed to overcome a history of internal inequality. For almost half a century, South Africa lived under an authoritarian regime that discriminated against and oppressed the country’s Black African, mixed race (Coloured), and Indian people. Under Apartheid, these populations had limited education and were eligible only for manual labor or domestic service jobs. Even after the end of Apartheid in 1994, changes in Black African employment were painfully slow. In response, South African’s political leadership decided to further encourage companies to overcome the country’s discriminatory legacy. The subsequent 2007 law allows companies to apply for BroadBased Black Economic Empowerment certification. To earn the certification, businesses are evaluated across seven empowerment indicators: ownership, management, employment, skills development, preferential procurement, enterprise development, and socio-economic development. Each category is weighted between 10 and 20 percent of the total score. The practice is referred to by the African National Congress, South Africa’s biggest political party, as “positive discrimination.”

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Ownership evaluates whether or not a company is more than 51 social welfare. It is easy to argue that a dramatic increase in CSR percent Black-African owned. Management and employment evalu- spending is exactly what the country needs. ates the percentage of management positions filled and number Forward thinking Indian corporations are eager to get onboard. of employees overall who are Black African, with “black” defined In April 2015, PYXERA Global hosted an event in Mumbai designed in the law to include Coloured and Indian as well. Preferential to bring together private and social sector leaders together in a procurement acknowledges how much of a company’s product meaningful dialogue about the law’s implications. Dr. Mukund is sourced from Black-owned businesses. The scores for skills, Rajan, Tata Sons’ Brand Custodian and Chief Ethics Officer, and a enterprise, and socio-economic development measure the amount Member of the Group’s Executive Council, spoke about his deep of money companies spend on contributing to these activities for belief in the power of companies to transform communities. their employees and others in the communities where they work. “In a free enterprise, the community is not just another stakeBBB-EE certification is not mandatory for a company to operate holder in business, but in fact the very purpose of its existence,” in South Africa. But it is required to compete for any government said Dr. Rajan, quoting the Tata Group Founder, Jamsetji Tata. contract, which are almost universally awarded on the basis of “Genuinely listening to the community needs is an important a Broad-Based Black Economic Empowerment score. This struc- step in the process of purposeful engagement.” Dr. Rajan noted ture requirement has especially that his company for its part has strong implications for multinaembraced a number of ways to tional companies operating in increase its social investment, inStill, legislating social good represents a new era South Africa. Subsidiaries of those cluding encouraging employees companies would automatically of tri-sector cooperation in which government, to use their skills to improve the receive a “0” for ownership, a companies, and nonprofits are incentivized in operational capacity of nonprofloss of a full 20 points out of 100. its. the strongest possible way to work together on The law attempts to overcome While the government has mutually beneficial goals. generations of discrimination identified several key prioriin schools and commerce. But ties, no structure has been put because of this legacy of disin place to strategically invest crimination, many Black African, funds. Companies are on their Coloured, and Indian employees lack the skills, training, and own. What’s more, no systemization has been created to effecexperience to serve as effective corporate leaders. While training tively leverage the expected increase. Without enforcement and may overcome some of these gaps, it will likely take time for strategic management, it will be difficult—if not impossible—for the law to significantly affect the country’s most disadvantaged the government to effectively measure the law’s impact on India’s populations. development. Some companies are critical of the law, claiming it essentially constitutes an exorbitant social-welfare tax, but India Mandates Companies Spend Two Percent of without government administration and oversight, while others Profit on CSR appreciate that the companies are able to determine how to In April 2014, India became the first country in the world to invest their funds. legislatively mandate CSR spending. The law requires all companies Some would suggest that all social impact legislation creates operating in India to spend two percent of their net Indian profits market inefficiencies, forcing companies to allocate resources in on CSR activities. It also specifies how funding efforts should be ways that are neither optimally efficient nor profitable. What’s planned and coordinated, including the internal management more, insisting companies spend more on CSR, technical training, committees companies should form to design and oversee their or talent development does not ensure the delivery of economic CSR investments. The law is an ambitious attempt to ensure that benefit, especially in cases like Ghana and India that lack sufthe financial returns of the country’s “tech boom” trickle down ficient oversight. to the less fortunate. Though it is not yet clear how the law will Still, legislating social good represents a new era of tri-sector be enforced, if all companies comply, it could triple the amount cooperation in which government, companies, and nonprofits are companies currently spend on CSR. incentivized in the strongest possible way to work together on As India’s economy continues to grow and the country forgoes mutually beneficial goals. Specifying requirements legislatively bilateral funding from DFID, USAID, and others, private sector social creates a clear business case that could reshape the business investment will play an important role in improving the country’s environment around the world.

First prize winner of the 2013 Center for Citizen Diplomacy Photo Contest: Qatar Foundation International

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Companies That Lead with CSR Lead the Way World CSR Congress and Charities@Work Reinforce How Sustainable Business Can Foster Social Impact “I AM THE BIGGEST BELIEVER IN RESPONSIBILITY—SOCIAL AND OTHERWISE.”

any responsibly-minded leaders and their organizations the world over endorse this view. Increasingly, conferences and gatherings in the social impact domain have focused on two key themes that underlie the point. First, that responsible action has to be at the very heart of an organization, its mission, and its operations, and secondly, the recognition that responsibility—literally “response-ability”—must be spread across multiple sectors to address the world’s most complex challenges. H.E. Khaled Al Kamda, Director General of the Community Development Authority of the Government of Dubai, opened the second day of the World CSR Congress in Mumbai with this quote, which perfectly captured the spirit and content of a gathering of some 1,400 leaders from 130 countries. He went on to clarify and propose one of the best definitions for corporate social responsibility, or CSR, I had ever heard. “This is not just merely about how much you give, but how you act and react, how transparent, how ethical, how much of your work is really touching the people.” In other words, CSR is not charity or an afterthought, but a mindset that guides

the formation of effective and impactful business strategy. Dwayne Baraka of Value CSR agreed, emphasizing that CSR needs to focus on core business, how companies make money in the first place, not solely on philanthropy. “The obvious answer to ‘giving back,’” says Baraka, “is to stop taking so much in the first place.”

World CSR Congress Connects Minds to Create a Better Future For the fourth year in a row, Dr. R. L. Bhatia convened an impressive group of leaders to recognize the “best of the best” in social responsibility and to encourage even greater commitment from those with a fervent desire to discover the best use of CSR. The two-day event explored several facets of CSR, including sustainability, green energy, water, social innovation, corporate affairs, and nonprofits, with more than 100 awards presented for excellence across each category. Equally impressive was the distribution of leaders from across sectors and nations: corporations, universities, government agencies and authorities, and social sector organizations engaged in spirited, respectful and optimistic dialogue about the ways in which the most challenging issues facing the world can be addressed in a holistic way.

Laura Asiala Sally Uren, CEO of Forum for the Future, outlined a dozen important business trends that will encourage companies to adopt CSR-driven business strategies. Long-held notions of “cradle to grave” supply-chain management, she observed, are being disrupted by the momentum of a broader movement toward a circular economy. Renewable energy of all varieties is becoming increasingly prevalent, a potentially disruptive force in the well-established infrastructure of fossil fuel-based economies. The sharing economy, once on the fringe, has broken into the mainstream, as companies like Uber and AirBnB have disrupted established markets, which has a significant effect on traditional drivers of economic growth and the production and delivery of goods and services. Last, and perhaps most importantly, shareholder values are gaining ground on shareholder value, a trend that underscores how socially-minded investments have become a chief concern of investors committed to supporting both responsible and profitable initiatives. Uren challenged companies and their potential partners to think of India’s new CSR legislation, which mandates that companies give two percent of their net profits to charitable causes, as an opportunity rather than an obstacle. By mandating CSR investments, the Indian government has given Indian companies a ready-made

The New Global Citizen | Summer 2015

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HAPPENINGS “business case” for CSR. “Use the regulation to start your journey,” said Uren, “to becoming a sustainable business by focusing your CSR and sustainability activities for business value and positive impact.” Being required to invest in CSR and shared value gives companies a new incentive to discover ways they can also deliver for the bottom line. In my presentation to the World Congress, I shared how companies that support pro bono projects—which position highly skilled corporate employees as pro bono consultants in underserved markets—can lead to a “triple win” that delivers value to employees, companies, and communities around the world. Program participants describe their experience as transformative leadership and professional skill development opportunities. Local client organizations are eager for the increased capability and capacity they receive pro bono, which would otherwise be unaffordable. And companies gain insight and relationships in new markets that foster sustainable and inclusive businesses. In India the projects in which companies can choose to invest is not without limit; the Indian government has provided a tangible list of appropriate issues corporations can support to meet the requirements of the two-percent law. These include eradicating extreme hunger and poverty; promoting access to water and sanitation; supporting access to education, increased livelihoods, and employment through enhanced vocational skills; improving health; empowering women and reducing child mortality; and ensuring environmental sustainability. The priorities also endorse support for social enterprise. Fortunately, this list is quite broad. It’s difficult to think of a company that might not be able to respond to at least one of these needs in a way that is also strategic for their business, assuming its leaders view CSR as an effective way to lead their business forward.

Charities@Work Unites Employee Engagement with Corporate Citizenship Half a world away, more than 50 CSR managers at leading U.S. companies gathered for the annual Charities@Work conference, a convening of corporations that have moved far beyond discussing philanthropy—strategic and otherwise. The summit transcends its name with a focus on what delivers impact: effectively engaging employees in service opportunities that deliver meaningful value. “Don’t get stuck on the name,” said Carol Cone, the Chair of Edelman’s Business + Social Purpose, with a wry smile. “Here’s the cool news: this is not a trend. Companies that succeed in building a profitable relationship with the external world define themselves through what they contribute.” Companies, she argues, no longer face a black and white choice to be sustainable or not, but can

The obvious answer to ‘giving back,’ is to stop taking so much in the first place. find ways of “generating long-term value for shareholders by delivering value to society as well.” She pointed to the Edelman Trust Barometer in which 81 percent of respondents indicate that companies can pursue their self-interest while also doing good work for society. Everything old is new again. Where there is great need, there is great opportunity. Corporate leaders have always known this, but the challenge, as ever, has been to frame needs in ways that business can address. Embedded within the Charities@Work summit was just such an opportunity, with an introduction to the United Nations post-millennial goals, the 17 Sustainable Development Goals. Though they do not impose the same mandate as India’s two-percent CSR law, the SDGs do provide an easy construct around which companies can align and integrate their CSR programs. Providing governments, companies, and social sector organizations with one set of goals around which to coalesce holds enormous promise. IMPACT 2030, a private-sector led coalition to use corporate volunteers as a way to address and accelerate progress toward these goals, provides one clear way that companies can meaningfully contribute to their achievement. And even those countries with different objectives, like India, have identified specific priorities that mirror at least eight of the SDGs. As strategies that lead with responsibility become the norm, tactics will differ from region to region, but the fundamentals will remain the same. Not only must companies consider their issue of focus, they must also evaluate their impact on all stakeholders, as well as ways to leverage partnership and collaboration among sectors to achieve real progress. Back in India, Dr. Massouda Jalal, the former Minister of Women’s Affairs in Afghanistan, a former presidential candidate, and the founder of the Jalal Foundation, summarized this approach best during her keynote address. “If we want a better world,” said Jalal, “we need to build a global army of supporters and challenge the action which corrupts the foundations of the world we dream about. We need to look at the issues holistically.” Her words were echoed with enthusiastic nods by the hundreds of CSR leaders gathered before her. “I’m heartened that there is such a thing as corporate responsibility,” Jalal observed. “I commend you for your social responsibility—the heart of the corporate world which beats for the public and making the world a better place to live.”

There Is Enough Food to Feed the World – Why Produce More? The Food Industry’s Fight to Feed the World Should Start with Post-Harvest Loss Har r y Pastuszek Photo: Martina TR | CC BY-SA 2.0

ENTERPRISE

o you remember the last time you were hungry? Truly hungry. Maybe you’re like me and most of the time food is an alluring vice. It’s a great source of comfort and a relief from the humdrum, a celebration of all that’s good. A good meal is something that can make even the most challenging of days fade into your mind’s backwaters, but the next visit to the doctor’s office shows unwelcome contributions to the bottom (or waist) line. Maybe you get “hangry” late in the afternoon on a day when lunch doesn’t materialize. You lose concentration, resulting in you offending colleagues or family members, and reduced productivity. Imagine a day like that ending not with leftover take-away, but instead with a sleepless night spent comforting crying, hungry children. My work is focused on finding ways for people to earn money with meaningful work and for small companies to win business from large multinational ones. I don’t often associate my performance metrics with people’s caloric intake. But as I’ve come to understand the complexities of post-harvest loss—the devastating effect of food lost after harvest—I’ve realized that addressing this challenge is also one of the greatest opportunities facing the food industry worldwide.

There Is Plenty of Food to Feed the Planet

1billion

p e o p l e s u f f e r f r o m c h r o n i c h u n g e r, acco rd i n g t o t h e Fo o d and A g r iculture Or g a n i z a ti o n o f t h e U ni t e d N ations .

Fifteen years ago, the Millennium Development Goals committed governments and aid agencies to halving the number of people who are hungry by 2015. As with many MDGs, progress was made. But most of those improvements occurred in countries like India and China, where rapid economic advancement lifted millions into the middle class. In the world’s least developed countries, the story is not so promising. Today, the Food and Agriculture Organization of the United Nations (FAO) estimates that about one billion people suffer from chronic hunger. Many more are malnourished. Confronted with a need to feed the hungry, it seems natural to focus on increasing the volume of food production, which aid agencies, multilateral institutions, and private funders have worked in concert to do. Almost 95

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The New Global Citizen | Summer 2015

A far mer stands in fro n t of his improv ed wh ea t crop in Rajasthan, I n d i a .

of all spending on food security is focused on im pro v i n g cu l t i v at i o n, enh anci ng p ro d u c t i vi t y, a n d p ro v i d i n g e x t e n s i o n s e r v i c e s t o i m p ro v e f a r m e r s ’ ca pac i t y t o gro w and h ar v es t m o re .

40%

of all fruits and vegetables are lost in substandard storage o r t rans i t , o r lef t o n t h e f a rm , i n w ha t i s today c al led po s t - h ar v es t lo s s .

percent of all spending on food security is focused on improving cultivation, enhancing productivity, and providing extension services to improve farmers’ capacity to grow and harvest more. The development community is trying to grow its way out of a hunger problem. But such widespread hunger is not caused by a shortage of food. The world already produces more than enough food to feed every person on earth.

Food Is Rotting Before It Gets to the Table Tragically, much of that production—50 percent of all fruits and vegetables, 40 percent of roots and tubers, and 20 percent of all cereals—is lost in substandard storage or transit, or left on the farm, in what is called post-harvest loss. And those staggering statistics do not even take into

account what is wasted on the plate or tossed away by consumers, nor the waste of water, land, fertilizer, labor, and other inputs that went into food production. The impact of post-harvest loss on food security has historically received scant attention; donor focus has waxed and waned. In the 1970s, the food crisis helped to put some focus on mitigating loss in the post-harvest value chain. But as commodity prices began to improve, attention returned to economic and technology-based fixes for enhancing agricultural productivity. Luckily, that’s beginning to change. Organizations like the Rockefeller and Bill and Melinda Gates Foundations are investing more in understanding the impact of post-harvest loss and seeking innovative solutions to the problem that are driven by the private sector. Multinational cor-

porations, including Unilever, Coca-Cola, and SAB Miller, have also implemented programs to address the issue. Multinational companies can play an essential role in transforming post-harvest loss into food security for the most needy. They can provide a ready market for produce, contribute to improved agricultural practices to ensure good quality, and adjust product offerings to take advantage of local crops prone to heavy loss and waste. To date, the power of multinationals to

address food loss has been best demonstrated in the beverage industry. SAB Miller, Africaâ&#x20AC;&#x2122;s leading beer producer, replaced barley with cassava to make Eagle beer in Ghana and Impala beer in Mozambique, taking advantage of the presence of a local commodity rather than using a grain that was not domestically grown. In both cases, the SAB Miller adjustment sought to create a market advantage from a high-loss crop. Similarly, Coca-Colaâ&#x20AC;&#x2122;s Kenya operation has started to use mango, an underutilized crop prone to high losses, for its juice production. Reducing crop loss to make beer and juice are hardly examples of creating food security. Yet, these innovative, market-based approaches can provide insight into reducing the loss of staples

and high-nutrition crops. Engaging the private sector in the fight against post-harvest loss is exactly what is needed.

Innovation Is Needed on Market Linkages and Distribution, Not Production or Storage Alleviating post-harvest loss requires reevaluating existing markets for agricultural products, such as hotels, restaurants, supermarkets, retailers, and processors. While they already handle a lot of produce in any given country, they could do more to utilize local foods in ways customers will buy and consume. For example in Nigeria, more than 50 percent of the tomatoes harvested are lost every year post-harvest. Yet many Nigerian hotels and super-

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The New Global Citizen | Summer 2015

markets import nearly half of their fresh for all their produce at the time of har- need massive amounts of additional food tomatoes from other African countries like vest; the local processors generate jobs and production; the second is that we need South Africa and Benin, even though do- profits, and the community has access to to innovate for better storage to reduce mestic production can currently meet close nutritious dried fruit. spoilage. There is enough food grown every to 75 percent of domestic demand. What’s In fact, without a way to deal effectively year to feed our growing planet, and costmore, the country spends close to $100 with abundance, a large buyer of produce effective, tested technologies are readily million annually on tomato paste imports. can actually make the problem of waste available to improve storage. It’s time to Unfortunately, the inability to connect worse. By encouraging greater production put them to work, and focus our innovation producers with consumers exists across a without an ensured demand for the pro- effort on how best to get that saved food number of crops in many other countries as duce, many market-led interventions in into the hands of the hungry. well. Connecting farmers to new markets is post-harvest loss have actually exacerbated Is it possible to end world hunger in a critical part of reducing waste and spoil- the problem, a classic case of “unintended 15 years? That’s Sustainable Development age, while selling to multiple outlets also consequences.” Goal 2, set to be ratified by the United Nareduces a farmer’s market tions in September. Recent risk. A market-led approach, research into the scope of by definition, means identithe loss and spoilage issues fying consumer needs and confronting agricultural seeking to profitably meet value chains suggests all the There is enough food grown every year to feed those demands. Historically, pieces exist to achieve this our growing planet, and cost-effective, tested market-driven food security lofty goal; they just need to technologies are readily available to improve interventions have looked be put in place. If 98 peronly at primary markets or cent of the world’s hungry storage. It’s time to put them to work, and focus those driven by large, mulpeople reside in developing our innovation effort on how best to get that tinational food and beverage countries, and most of the saved food into the hands of the hungry. companies, without much food lost between field and consideration for smaller, altable occurs in these same ternative outlets. A focus on places, it seems only logical what are sometimes referred to focus on saving food that to as “secondary markets” is already being produced, and harnessing them to provide quality, A second critical focus area for food rather than producing more. nutritious food could make all of the dif- loss is storage. According to a study from This is a relatively simple statement, ference in reducing loss and spoilage in the World Food Programme that reviewed not to be confused with an easy solution. the value chain. maize production and storage in Uganda in Challenges in infrastructure, logistics, marFor instance, in the mangos-for-juice 2013 to 2014, after 90 days of storage, 60 ket access and information, food processexample above, smaller processors could percent of all maize traditionally stored in ing practices, access to finance, and techinvest in equipment to dry mangoes. While granary or polypropylene bags had spoiled. nology plague the food value chains around Coca-Cola is buying mangos in bulk, it is In comparison, maize stored using five dif- the world. However, engaging the private unlikely that all mangos produced will meet ferent new storage technologies (metal- sector to address this challenge holds enortheir quality standards, or there may sim- lic silos, plastic silos, super grain bags, mous promise. When coupled with secondply be more than Coca-Cola needs. Local zero fly bags and grain safes) experienced ary market considerations, multinational processors can take advantage of this negligible spoilage. Appropriate technolo- interventions have the potential to move abundance by purchasing from farmers gies exist, and they are all relatively low the needle on world hunger. By recouping who would otherwise lose those crops to cost, particularly when compared with the the more than 30 percent of food lost every spoilage and in turn deliver highly nutri- cost of food loss, and yet they are rarely year around the world, perhaps those one tious food to consumers, which results in deployed. billion people suffering from chronic hunger a win for all stakeholders. Coca-Cola has a In other words, two misconceptions can instead experience the joy of going to reliable supply of mangos, farmers benefit seem to waylay efforts to address the glob- bed well fed. from a ready and relatively stable market al food crisis: the first is the idea that we

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The New Global Citizen | Summer 2015

BOOK EXCERPT

Culture and Climate: Getting the Social Science Right for Change

cience is standing in the way of action for climate change–but maybe not the way you think. In his latest book, How Culture Shapes the Climate Change Debate, Andrew Hoffman, Ph.D. makes the case that it is not a lack of physical nor biological science preventing concerted action in combatting climate change, but social science. It turns out the “soft” stuff is the “hard” stuff. Again. Hoffman asserts there is scientific consensus that the global climate is changing and that humans, in part, are causing it. He demonstrates that point in several ways, including reports from the United Nations Intergovernmental Panel on Climate Change, endorsed by nearly 200 scientific agencies around the world including the scientific agencies of Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States. However, there is no social consensus on climate change. Couple that with a demonstrable political divide and what we have is gridlock. Hoffman notes, “The challenge in improving the form of public and political debate is not simply scientific in nature; at this stage it is as much about the communication of science as it is about the science itself.” Hoffman isn’t arguing for less scientific research, but he is making a broad call to recognize that it is insufficient. At its heart, the great divide is the product of contrasting, deeply entrenched worldviews, through which science is viewed. In his book, he calls for a holistic approach. This includes

understanding the “cultural schism before us” and the organized movements which seek to resist change, including the role of media. Most interestingly, he gleans

lessons from two examples of significant historical cultural change. Hoffman examines the debate over cigarette smoking and cancer, which was also marked by a strong difference between scientific consensus and social consensus. The second analogy is the debate over the abolition of slavery, as a way to demonstrate the sheer magnitude of the cultural shift required to deal with climate change.

The key point is this: the gulf we face with regards to positive movement with regards to climate change cannot be overcome with simple logic or more scientific evidence. We cannot beat—by words or deed—people into changing their point of view. “Trust is the subtext you will read throughout the book,” he writes. “Before asking people to consider changing their worldview, you must begin by gaining their trust.” The following is an excerpt of the book. Climate change has been transformed into a rhetorical contest more akin to the spectacle of a sports match, pitting one side against the other with the goal of victory through the cynical use of politics, fear, distrust and intolerance. No wonder the public is confused. But how did an issue like climate change become so toxic, so caught up in what we call the culture wars? Why has it joined sex, religion, and politics an issue people try not to discuss in polite conversation? … Social scientists view the public understanding of climate change not as a lack of adequate information but as the intentional or unintentional avoidance of that information. That avoidance is rooted in our culture and psychology and can be summarized in four central points. We all use cognitive filters. While physical scientists explore the mechanics and implications of a changing climate, the social scientist explores the cultural and

The New Global Citizen | Summer 2015

cognitive reasons why people support or reject their conclusions. What social scientists find is that physical scientists do not have the final word in public debate. Instead, we interpret and validate conclusions from the scientific community by filtering their statements through our own worldviews. Through what is called motivated reasoning, we relate climate change through our prior ideological preferences, personal experiences, and knowledge. We search for information and reach conclusions about highly complex and politically contested issues in a way that will lead us to find supportive evidence of our preexisting beliefs. Our cognitive filters reflect our culture identity. We tend to develop worldviews that are consistent with the values held by others within the groups with which we self-identify. In what Yale University lawn and psychology professor Dan Kahan calls cultural cognition, we are influence by group values and will generally endorse the position that most directly reinforces the connections we have with others in our social groups. It is not necessarily that we reject scientific conclusions in this process, but that they are weighted and valued differently depending on how our friends, colleagues, trusted sources, or respected leaders value and frame these issues. We are the product of our surroundings (both chosen and unchosen) and gravitate towards opinions that fit with those of the people with whom we identify. As such, positions on topical and controversial issues like climate change become part of our cultural identity. Cultural identity can overpower scientific reasoning. When belief or disbelief in climate change becomes connected to our cultural identity, contrary scientific evidence can actually make us more resolute in resisting conclusions that are at variance with our cultural beliefs. Research by sociologists Aaron McCright from Michigan State University and Riley Dunlap from Oklahoma State University found that increased education and self-reported understanding of climate science corresponds with greater concern among those who already believe in climate change but less concern among those who do not. Kahan and colleagues have found that “members of the public with the highest degrees of science literacy and technical reason capacity…were the ones among whom cultural polarization was greatest.” In short, increased knowledge tends to strengthen our position on climate change, regardless of what that position is. Instead, the key to engaging the debate is addressing the deeper ideological, cultural and social filters that are triggered by this issue. Our political economy creates inertia for change. We cannot discuss the social processes that guide our thinking without also considering the economic, political, and technological realities that are both the enactment of our values and a source of inertia

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to changing them. First, there is a vast physical infrastructure around fossil fuels and the lifestyle they create, which cannot be replaced easily. Second, there are strong economic and political interests that are threatened by the issue of climate change (many of them controlling the infrastructure just mentioned). As a result they have adopted strategies to confuse and polarize the debate in order to protect their interests. Efforts to change cultural views on climate change must include changing the vast institutions and infrastructure of our economy and must be prepared to deal with resistance from those who benefit from them. These four points form the central thesis of this book. The debate over climate change in the United States (and elsewhere) is not about carbon dioxide and greenhouse gas models; it is about opposing cultural values and worldviews through which that science is seen. Those cultural values create a pattern of shared basic assumptions that tell us the correct way to perceive, think and feel in relation to problems and situations we face. They furnish us with the guidelines for practical action, providing us with a road map, if you will, a way of understanding how the world works, how it ought to work, and how we behave within it. As a result, when different groups view the same science through opposing cultural lenses, they see something very different. … Battle lines drawn, the social debate around climate change is now devolving into a “cultural schism” in which opposing sides do not debate the same issues, seek only information that supports their position or disconfirms the other’s and begin to demonize those who disagree with them. With time, our positions become relatively rigid and exclusive, thickening the boundaries between cultural communities. In essence, we begin to identify the members of our group (or tribe), and therefore those whom we trust, on the basis of their position on specific issues, like climate change. In his book, The Honest Broker, Roger Pielke Jr., professor of environmental studies at the University of Colorado, compares the extremes of such schisms to “abortion politics,” where those opposing abortion frame it as an issue of “life,” those favoring as an issue of woman’s “choice,” and where each side invokes broader logics around religion, family, and freedom to support its views. With time, Pielke warns, “no amount of scientific information…can reconcile the different values.” Extreme positions dominate the conversation, the potential for discussion or resolution disintegrates, and the issue become intractable. This book seeks to avert this outcome by calling attention to its reality, to the process that make it happen, and to the tactics that can be used to change the discourse.

From HOW CULTURE SHAPES THE CLIMATE CHANGE DEBATE by Andrew J. Hoffman. (c) 2015 by the Board of Trustees of the Leland Stanford Jr. University. All rights reserved. By permission from Stanford University Press, www.sup.org. Published in paperback and digital formats.

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The New Global Citizen | Summer 2015

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