Chengcheng Zhai, a Kelley School PhD student with a deep personal connection to rural life, has spent her academic career focused on addressing inequities in resource allocation, particularly in rural areas of developing countries. Growing up in a remote village called GanQiKa in Inner Mongolia, China, Zhai experienced firsthand the stark contrasts between rural and urban living conditions. “My first elementary school had latrines, no running water, and families took turns donating coal to heat the classrooms,” she recalled. These experiences, contrasted with later years spent in Beijing where her school had bathrooms, running water, and central heating, ignited her interest in addressing disparities in resource access.

Chengcheng Zhai, Ph.D. in Operations Management, Kelley School of Business, 2024

Zhai successfully defended her dissertation in May 2024, a culmination of years of research into drinking water access issues in Africa. She is joining the Mendoza College of Business at the University of Notre Dame as an Assistant Professor of IT, Analytics, and Operations. Her dissertation committee members include Kurt Bretthauer and Jorge Mejia, Faculty Fellows at the Institute for Environmental and Social Sustainability.

Her dissertation is a comprehensive investigation into how NGOs operating in rural areas of sub-Saharan Africa (SSA) can improve their operational decisions regarding the location of new water points, the maintenance of existing water points, and the fundraising strategies to boost donations. As Zhai emphasizes, “Worldwide, over 700 million people still lack access to clean drinking water, with more than half living in rural areas of sub-Saharan Africa.” This global challenge is a focus of one of the United Nations Sustainable Development Goals, and many non-governmental organizations (NGOs) are working tirelessly to improve water access.

Ethiopia, January 2020. A public stand-tap in Tigray, Ethiopia. Typically, a community member, usually a woman, manages the opening and closing of the water site and collects fees from those who come to fetch water.	Ethiopia, January 2020. People use jerrycans to store water. Each jerrycan holds 20 liters and weighs about 45 pounds. People carry jerrycans on their shoulders or heads, while wealthier families may use donkeys to transport water.

(more…)

On April 10, 2024, the Institute for Environmental and Social Sustainability (IESS) hosted the “Focused Fields Workshop on Sustainable Consumption in a Finite World.” This workshop marked a significant moment in our interdisciplinary dialogue on sustainability.

The workshop featured an impressive lineup of speakers, including industry professionals from sectors such as water technology solutions, medical device, and consulting. Faculty members from the Kelley School of Business and the O’Neill School of Public and Environmental Affairs presented their current research. Their expertise spanned various fields, including business economics, public policy, marketing, environmental economics, and business laws. Together, they delved into a broad spectrum of crucial topics, fostering a comprehensive exploration of topics related to sustainable consumption.

Rebecca Slotegraaf, Associate Dean for Research at the Kelley School of Business opened the event by underscoring the important role of the IESS plays within the Kelley School and the significance of this event.

Patrick Decker (former CEO of Xylem) speaks at the workshop on Sustainable Consumption in a Finite World

Patrick Decker, former president and CEO of Xylem and IU Kelley alum echoed that not only we have a finite world but also a finite time, and delivered a key message to the audience: Time + Purpose = Impact.
Kate Christensen, Assistant Professor of Marketing, brought us fascinating perspectives on how thinking about past can help connect us to our future selves end generations which increases concerns for the environment and the willingness to save for the future.
Ken Richards, Professor at the O’Neill School of Public and Environmental Affairs and Maurer School of Law, shared a framework for understanding the influencing forces for business sustainability and implications for government policy.

Makayla Bonney, Sustainability Manager at Deloitte, provided a comprehensive overview of the global ESG regulatory landscape, highlighting the relevant standards and potential challenges.
In the research of product labeling, John Maxwell introduced the dual-updating problem about both the quality of the product and the quality of the label and made deep economic theory behind labeling easier to understand.
Scott Shackelford, Professor of Business Law and Ethics, discussed the role of cybersecurity in sustainability.

Barry Slowey, Vice President – Chief Sustainability Officer at Cook Medical, shared Cook Medical’s social impact and sustainability programs.
Erick Mas, Assistant Professor of Marketing, shared his research on the link between food waste and political ideology.
Kelley Wight, Assistant Professor of Marketing, shed light on how social media can promote prosocial behavior.

Owen Wu, Director of Research and Outreach at IESS, emphasized the importance of cross-disciplinary collaborations in addressing environmental and social sustainability, noting that the Focused Fields Workshop wasn’t just about identifying problems but also exploring practical solutions and innovative strategies that can help us respect and conserve our finite resources.

As we reflect on today’s significance, let’s renew our commitment to making informed and sustainable choices that respect our finite world.

Written by Julianne Hatcher, Environmental Sustainability/International Studies, Class of 2024

Each fall, Professor Kelly Eskew hosts a poverty simulation to help students better comprehend the realities of poverty for American families. I was a part of this educational demonstration during my time in Professor Eskew’s Business and Poverty Alleviation course.

Our class had been exploring the complicated intersections between poverty and business throughout the semester to better understand solutions to the poverty crisis. We brought this intersectionality to life through the poverty simulation, an interactive experience that touches on the difficulties of maintaining a family while living below the poverty line.

The demonstration was exceptionally powerful for me and my peers. The simulation begins by grouping students into nuclear families and giving them a file on their family dynamic and income. Students are then given an allotted amount of time – four 12-to-15 minute “weeks” – to meet the needs of their family through interactions with employers, the government, and themselves.

Students were asked to go to work, if able, provide childcare and balance the other stressors of life. Booths were set up around the room providing a variety of lackluster services that seemed to cause more frustration than they alleviated. Many of these services including a welfare office, bank, grocery store, pawn shop, and more required transportation and often were unable to help families. The actors did an exemplary job highlighting the barriers many real families face when attempting to access services and pay for groceries, utilities, and other necessities for a healthy and dignified life.

This was then coupled with the need to maintain social relations with your kids and spouse. In particular, my group had a burdensome lack of transportation that led to several miscommunications. For example, I remember coming back home to my “husband” only to find out we both went grocery shopping and wasted most of our money since we did not have time or gas to come home and realize what we had done until it was too late. This error set us back the rest of the exercise.

Our facilitator, Ron Duncan, did an excellent job building the stress and keeping us aware of how vital it was to provide for their families, even as students began to get frustrated. His guidance kept us engaged, reminding us that, while this was a simulation for us, it is the reality for many people in the United States today.

Ron Duncan leading the poverty simulation

Ron’s explanation that the case files we had been given were modeled after real families was a startling realization for me and many of the other students. Throughout our time in the simulation, we became stressed, and many students were laughing at their own frustration. However, following the chilling revelation that this was daily life for real people, most of the room fell into an embarrassed silence. Students seemed shocked that the pure anxiety and heartache they had grown so exhausted with, in less than an hour, could be a typical feeling for many people in poverty. As Ron said, “You are the best and the brightest, and you fell apart in an hour. Imagine this as a daily reality.”

Family evicted in the simulation

Looking back to my earlier example of how my group accidentally bought groceries twice, I was hit with the startling realization that one mistake can be a devastating cost to a family in poverty. Others failed to pay rent or utilities, leading to disconnections and evictions. Throughout our course, we discussed many aspects of poverty, including the risks a low-income family can face, but I was unable to actualize this until the simulation. This hands-on experience aided me and the others in understanding the humanity of the statistics we had learned about. This interactive lesson pushed us to remember that the cases we studied in class represent real people and the solutions we were discussing needed to be catered to those people.

Overall, this simulation is not only powerful, but important. This experience brought together dozens of students to think critically about poverty in the U.S. and how poverty may fluctuate in times of a changing climate, policy changes, and more. We send a special thank you to Ron Duncan and the other volunteers who helped orchestrate this simulation.

As 2023 concludes, we at the Institute for Environmental and Social Sustainability (IESS) at the Kelley School of Business reflect on our inaugural year, a period brimming with vibrant activities, engaging discussions, and distinguished speakers, all centered around our commitment to environmental and social sustainability.

A Promising Beginning
IESS’s establishment, aligning with Earth Week 2023, was more than a ceremonial milestone; it was a profound statement of our intent. The excitement and enthusiasm of nearly 50 Kelley faculty from diverse disciplines joining the institute reflect a shared dedication to create meaningful change through research, teaching, and outreach.

Cross-Disciplinary Synergy
Our faculty, representing a spectrum of business disciplines, engaged in an innovative mapping of our research to the 17 UN Sustainable Development Goals (SDGs). This strategic initiative has not only facilitated interdisciplinary collaborations but also enriched the academic discourse with diverse perspectives. For more details, visit our Institute’s research webpage.

A Confluence of Minds and Ideas
The “Innovations to Tackle Global Sustainability Challenges” Conference in mid-September brought together thinkers and leaders, sparking dialogues critical for addressing global sustainability issues. This event underscored our role as a hub for progressive ideas and solutions.

This momentum continued with two significant events. On October 14, 2023, the “Symposium on Environmental and Social Sustainability in Supply Chains,” hosted at the Walton Center for Planetary Health and co-organized with the W. P. Carey School of Business at Arizona State University, provided a vital platform to examine sustainable supply chain management’s challenges and opportunities.

Subsequently, on October 30, 2023, the “Focused Field Workshop on the Environment, Energy, and Entrepreneurship” at the Kelley School of Business explored the complex, contemporary environmental and energy issues.

Engagements with Thought Leaders
The fall semester was further enriched by interactions with prominent leaders in sustainability and climate change. Nobel Laureate Lars Hansen’s visit on September 29, 2023, Kelly Carmichael, VP Environmental of NiSource, on October 9, 2023, Professor Michael Oppenheimer on October 25, 2023, and Auden Schendler, SVP Sustainability of Aspen Skiing Company, on November 6, 2023, provided our community with invaluable insights. Their educational and inspirational talks motivated us to engage proactively with environmental issues.

Looking Ahead to 2024
As we step into 2024, IESS remains committed to advancing our goals in sustainability research and education. We are poised to build upon this year’s achievements and continue our journey towards making a significant impact in the field of environmental and social sustainability.

On October 30, 2023, the Institute for Environmental and Social Sustainability (IESS) successfully hosted the “Focused Fields Workshop on the Environment, Energy, and Entrepreneurship.” This pivotal event brought together a diverse blend of expertise from academia and industry, fostering a multifaceted dialogue on crucial topics surrounding energy and natural resources.

The workshop featured an impressive lineup of speakers, including industry professionals from sectors such as public utility, private energy businesses, and consulting. Faculty members from the Kelley School of Business and the O’Neill School of Public and Environmental Affairs presented their current research. Their expertise spanned various fields, including business economics, public policy, finance, entrepreneurship, environmental economics, and operations management. Together, they delved into a broad spectrum of crucial topics, fostering a comprehensive exploration of contemporary environmental and energy issues.

Dr. Owen Wu, Director of Research and Outreach at IESS, underscored the significance of such cross-disciplinary engagements. He remarked that the Focused Fields Workshop not only spotlighted pressing challenges in environmental and social sustainability but also paved the way for innovative, sustainable solutions through collaboration between academia and industry.

Maureen Turman speaks on Sustainability and Decarbonization at NIPSCO

Morning presentations:

Reducing Industrial Water Consumption: The Impact of Organizational Learning
Amrou Awaysheh, Kelley School of Business

Indiana’s Steel Industry Decarbonization Potential
Anees Azzouni, Azzouni & Associates, Inc.

Soaking Up the Sun: Battery Investment, Renewable Energy, and Market Equilibrium
Andrew Butters, Kelley School of Business

Tightening Criteria for Viable Sustainability Projects in Energy Sector
Tim Gawne, Rio Energy International, Inc.

Sustainability and Decarbonization at NIPSCO
Maureen Turman, NiSource

Afternoon presentations:

The Four Influences for Business Sustainability
Kenneth Richards, O’Neill School of Public and Environmental Affairs and Maurer School of Law

Ethical Corporate Challenges from Historical Legacy
Colinne Bartel, AC Innovation GmbH

Social Reward-Investment: Energy Technology & Equitable Environmental Management
David Bell, O’Neill School of Public and Environmental Affairs

Banking on Carbon: Corporate Lending and Cap-and-Trade Policy
Mathias Kruttli, Kelley School of Business

Resource Allocation and the Community Solar Business Model
Owen Wu, Kelley School of Business

Speakers and IESS Faculty Fellows

Written by Iman Attari, doctoral student at the Kelley School of Business

On October 14, 2023, the W. P. Carey School of Business at Arizona State University and the Kelley School of Business at Indiana University collaborated to host the 2nd Annual Symposium on Environmental and Social Sustainability in Supply Chains. Following the success of the inaugural event in 2022, this year’s symposium brought together academic scholars and industry professionals who discussed pioneering advancements, shared insights, and underscored the need for collaborative efforts to address sustainability challenges across the globe.

Prof. Goke Oke kicked off the day by shedding light on the sustainability challenges Africa faces, such as deforestation, water scarcity, and plastic pollution, among many others. Dr. Oke’s emphasis on innovative projects like ASU’s Center for Applied Research and Innovation in Supply Chain-Africa (CARISCA), which empowers African scholars and industry stakeholders, underscored the importance of proactive and synergistic efforts in the face of sustainability challenges.

Adegoke (Goke) Oke, W.P. Carey School of Business, Arizona State University

(more…)

Written by Stephanie Wang

As one of the Program Co-Chairs for the 2nd Annual “Innovations to Tackle Global Sustainability Challenges” Conference, I am brimming with pride as I reflect on our extraordinary journey from September 14 to 16, 2023.

Let me take you on a tour of our program—a carefully designed program aimed at nurturing knowledge sharing, exploration, and innovation. To kickstart our gathering, we were honored to have Rebecca J. Slotegraaf, Associate Dean for Research, deliver the opening remarks. Rebecca extended a warm welcome to all participants and emphasized the significance of the Kelley School of Business’s Institute for Environmental and Social Sustainability.

Our dynamic panel presentations were truly remarkable. We had the debates on the “Current State of Research on Sustainability” led by the brilliant minds of Heather Berry and Andrew King. We explored the intricacies of “Extending/Challenging Existing Theories” courtesy of the thought-provoking insights of Jonathan Doh and Valentina Marano. These discussions challenged conventions, igniting profound conversations that underscored the intellectual vitality of our research field.

But, if I may share my personal favorite, it was the “Interdisciplinary Insights Exchanges” panel led by Owen Wu, Amrou Awaysheh, Jeff McMullen, and Cynthia Williams. Their collaborative spirit exemplified the essence of our conference, blending diverse perspectives for a more holistic approach to sustainability.

Innovative minds gathered at the Kelley School of Business

(more…)

Peace is a universal aspiration, yet seemingly elusive in a world that appears more polarized over time. As global citizens striving for a peaceful future, we have articulated our aspiration in the United Nations Sustainable Development Goals. Goal 16 emphasizes peace, justice, and strong institutions. Professor Tim Fort, in his enlightening vlog series, introduces a unique perspective on this goal, highlighting the role cultural artifacts can play in fostering peace.

Cultural artifacts, as per Professor Fort, are not limited to tangible objects but extend to shared aspects of our lives such as music, sports, literature, film, cuisine, business, and even our pets. He suggests that these shared experiences can serve as bridges toward peace and platforms for constructive dialogue.

Professor Fort shares brief yet powerful narratives in his vlog series. For example, he tells of post-genocide Rwandan women who built peace by forming a drumming group and later an ice cream business. He recounts the World War I Christmas Eve truce, where enemies found common ground through song, sport, and a shared pet. These impactful anecdotes encapsulate the transformative potential of cultural artifacts in fostering peace. He encourages us to look beyond narrow political and social labels, using shared experiences as a springboard for connecting on a deeper, human level.

Cultural artifacts, according to Professor Fort, can serve as our ‘nudges’ and ‘bridges’ towards peace.
They can guide us in making decisions that promote understanding and dialogue, moving towards more peaceful and inclusive societies for sustainable development.

Professor Fort’s vlog series is more than an academic discourse. It is a call to action, urging us to harness our shared human experiences in a concerted effort towards peace.

Join Professor Tim Fort’s vlog for a fascinating exploration of peace-building through cultural artifacts. Indeed, if peace could be forged amidst the ruins of genocide or the trenches of a battlefield, it’s possible to attain and sustain it in our world today.

In an era where high-quality and safe products are a core pillar of corporate social responsibility, the proliferation of product recalls across a wide range of industries, including medical devices, automobiles, pharmaceuticals, and consumer products, points to an urgent need to understand the underlying causes, managerial decision-making processes, and societal impacts associated with these recalls. One academic leading the charge in this crucial area of study is Professor George Ball, who has dedicated his research efforts towards dissecting the causes of product recalls and the complex decision-making processes that lead to them.

CEO Stock Ownership and Medical Device Recalls

In a most recent study, Ball and his team unravel the significant influence of CEO stock ownership on the speed of recalling faulty medical devices. Based on data from 2,144 medical device recalls across 50 public medical device firms from 2002 to 2015, they find that firms with CEOs holding larger ownership stakes recall devices more slowly, with this delay being more pronounced for high-severity recalls. This delay, in turn, amplifies the stock market penalty associated with the recall. Boards of directors can utilize these findings to shape CEO compensation packages and guide oversight on product quality decisions. Regulators like the FDA can leverage this research to better identify firms that may require additional scrutiny, thereby optimizing the allocation of limited monitoring resources.

The Phenomenon of Recall Clustering

In another study published in 2022, Ball and his team explore a fascinating phenomenon known as “recall clustering”, where a leading recall (the first recall in a cluster) triggers following recalls within a short timespan. The researchers find that 73% of auto recalls occur in clusters, which last for 34 days on average and encompass 7.6 following recalls after the leading recall. Intriguingly, the leading recalls are associated with as high as a 67% larger stock market penalty than the following recalls, which are “hiding in the herd” as suggested by the article’s title. This phenomenon of recall clustering and the varying market penalties based on a recall’s position within a cluster provides pivotal insights for regulators like the National Highway Traffic and Safety Administration to limit recall clustering.

Female Directors and Recall Decisions

In an earlier article published in 2021, Ball and his team investigate how increasing the number of female directors on a firm’s board influences recall decisions. Analyzing 4,271 medical product recalls across 92 publicly traded firms, they discover that as more female directors are added to the board, firms initiate more low-severity recalls, reflecting an increased adherence to rules in making recall decisions. Moreover, firms with more female directors make faster decisions for high-severity, life-threatening defects, demonstrating heightened responsiveness to stakeholders. These findings imply that the gender composition of boards significantly influences recall decisions, with a higher representation of female directors leading firms towards closer alignment with regulatory rules and consumer safety, thereby facilitating more societally beneficial recall decisions.

A full list of Professor George Ball’s research can be found here. He is the recipient of the IU Bloomington’s Outstanding Junior Faculty Award in 2019.

Professor George Ball‘s pioneering research provides a foundation for understanding and addressing the complexities associated with product recall decisions. It illuminates potential areas for intervention to enhance product safety and consumer protection. As we dive deeper into the causes of product recalls and the associated decision-making processes, we can better understand how to manage and prevent product defects, reinforcing the shared goal of consumer safety.

In an insightful study, Ivan Ivanov, Mathias Kruttli, and Sumudu Watugala delve into the financial risks brought on by carbon pricing and the shift to a low-carbon economy. These risks impact greenhouse gas-emitting firms and their lenders, prompting critical questions about financial stability.

The study zeroes in on major U.S. climate change policies, notably the California and Waxman-Markey cap-and-trade bills. The main finding is that banks are swiftly managing their risk by renegotiating loan terms, stepping back from term loan financing, and enforcing stricter cash flow covenants. This shows banks are proactively adjusting their sails to the gusty winds of climate transition.

However, the research unveils a cautionary note. Smaller, private firms are disproportionately affected, potentially experiencing increased operating costs and constrained access to finance.

Ivanov, Kruttli, and Watugala’s study illuminates the financial sector’s nimble response to climate change, while calling for recalibration of cap-and-trade programs to account for smaller, private firms. Their research, “Banking on Carbon: Corporate Lending and Cap-and-Trade Policy,” is a must-read for anyone interested in the financial implications of our transition to a green economy.