Strategic Corporate Social Responsibility: 8/1/23

Thursday, August 31, 2023

Strategic CSR - Fossil fuel subsidies

Here's a number, from the article in the url below, to focus your attention on the scale of the challenge ahead:

"The International Monetary Fund calculated that just over $7 trillion in subsidies went to fossil fuels last year. That is a record for at least the past decade. Since the IMF's report expresses all figures in 2021 dollars, inflation cannot explain away the increase. In short, the world has never spent this much to subsidize fossil fuels."

Just as concerning, perhaps, is that this number (which is spent annually) is many times larger than the amount of money being invested in the transition to renewables:

"The world is headed for a record year of investment in the energy transition. Every new clean electron generated by wind turbines and solar arrays, and each new battery-powered car and hydrogen electrolyzer, will reduce some measure of the fossil fuels consumed on the planet's roads and grids. More than $1 trillion was spent on the transition last year, and almost certainly will be spent again in 2023."

The only hope, perhaps, is that this $7 trillion comprises both explicit subsidies (lowering the purchase price) and implicit subsidies (failing to account for externalities), and not in equal amounts:

"About one-quarter of the total — $1.33 trillion — is made up of what the IMF terms explicit subsidies, or undercharging for the cost of supplying a fossil fuel or electricity. … But that still leaves a balance of $5.7 trillion in implicit subsidies, or undercharging for the environmental costs of a fuel, as well as forgone taxes on consumption. … Implicit subsidies grew less in percentage terms than explicit ones, but given their scale, they increased nearly as much in absolute terms — by more than $500 billion."

Both numbers are record highs (so the problem is getting worse, not better). But, in theory at least, these implicit subsidies could be fixed if the political willpower existed to pass a global carbon tax (the approach that is widely acknowledged by economists as the most effective way to make immediate headway against climate change – see Strategic CSR – Carbon Tax).

Take care

David

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e

Strategic CSR Simulation: http://www.strategiccsrsim.com/

The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

The Biggest Fossil Fuel Subsidies Are Indirect, and Bigger Than Ever

By Nathaniel Bullard

August 31, 2023

Bloomberg

https://www.bloomberg.com/news/articles/2023-08-31/world-s-underpricing-of-fossil-fuel-costs-hit-5-7-trillion-in-2022

Monday, August 28, 2023

Strategic CSR - WFH

I think there are a number of disadvantages (individually) to working from home (WFH). These range from a lack of social interaction (and excessive screen time) to a reduced chance of being promoted. I am betting there are disadvantages to the organization, too. The article in the url below covers an issue that bridges both – a disadvantage to the individual (less meaning/purpose) and a disadvantage to the organization (fewer engaged employees):

"People who work from home are feeling more disconnected from the larger mission of their employers. In a new Gallup survey, the share of remote workers who said they felt a connection to the purpose of their organizations fell to 28% from 32% in 2022—the lowest level since before the pandemic. The findings are from a survey this spring and summer of nearly 9,000 U.S. workers whose jobs can be done remotely."

Interestingly, hybrid workers register the highest in terms of connection to the company's purpose. I suppose the key question then is, what does "hybrid" look like – what is the ratio of days spent WFH, compared to those spent in the office, which generates the highest level of motivation?

"By contrast, a third of full-time office workers reported a similar sense of connection, nearly the same as last year. Hybrid workers clocked in highest, with 35% saying their companies' mission made them feel their jobs were important."

I think the discussion around the effectiveness of teams that WFH was clouded by research early in the COVID pandemic that showed no loss of performance (and, actually, an increase in performance due to efficiencies like reclaimed commuting time). The trouble with that research, from my perspective, is that it was done on teams that had been formed in-person, prior to the pandemic. It makes sense that such teams should perform better remotely because they are combining all the benefits of remote work (e.g., saving commute time) with the benefits of relationships that were formed in person. When you remove that core foundation of deep relationships (i.e., employees who are socialized into the organization via Zoom), it is hard to imagine how such teams could be as effective:

"For now, many workers say remote work affords them the ability to focus on their essential duties and avoid some of the extracurriculars of office life. This leaves it to companies to try to foster that sense of connection."

Of course, because the deep relationships are missing. These social ties are what connect employees and gives them a reason to go above and beyond in support of their colleagues:

"In short, more remote workers appear to be approaching their jobs with 'a gig-worker mentality,' fulfilling the basic responsibilities of the role rather than anticipating the broader needs of their team or company, said Jim Harter, chief workplace scientist at Gallup, which has tracked worker engagement since 2000. Most professional roles, he points out, tacitly include expectations that go beyond the actual work, such as mentoring others or spurring innovation. 'That's much more likely to happen if they feel they're part of something significant,' he said."

Expect the challenge of how to 'return to work' to continue, given the popularity (and perceived value) of WFH:

"Nearly 30% of U.S. workers in remote-capable jobs work exclusively at home, according to Gallup, a share that hasn't wavered much in the past year."

Take care

David

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e

Strategic CSR Simulation: http://www.strategiccsrsim.com/

The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

Workers Feel Disconnect

By Lindsay Ellis

August 25, 2023

The Wall Street Journal

Late Edition – Final

https://www.wsj.com/lifestyle/careers/the-growing-disconnect-between-remote-workers-and-their-companies-f7519676

Wednesday, August 23, 2023

Strategic CSR - Beer

Welcome back to the Strategic CSR Newsletter!

The first newsletter of the Fall semester is below.

As always, your comments and ideas are welcome.

As the article in the url below notes, when introducing change to humans who are boundedly rational, perception is everything. This is especially true when trying to persuade people to drink recycled wastewater:

"'If you give somebody a glass of water and tell them that it's been purified from wastewater… one person out of two will not drink it.'"

So, of course, the solution is to turn it into alcohol:

"… 'But if you convert that same water to beer, all of a sudden nine out of 10 will [drink it].'"

This is somewhat ironic, given that beer was originally widely drunk to disguise the smell and flavor of water. Now, due to our mismanagement of our fresh water supplies, we are exploring ways that beer can allow us to be more efficient in our water use: