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

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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

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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.

In her recent research, Professor Dionne Nickerson dives deep into how consumers are more likely to engage with brands making genuine efforts to rectify past environmental or social harm. The study reveals that corrective and compensating actions by businesses, designed to address their specific harmful practices, can boost sales significantly.

Corrective actions – concrete operational changes made to offset past harm, and compensating actions – donations to offset damages, boosted sales by 1% and 3% respectively. On the flip side, CSR actions unrelated to a company’s core business or past practices led to a 3.5% drop in sales.

Nickerson’s research reveals the importance of sincerity and relevance in CSR initiatives. Consumers are increasingly aware of the societal impact of corporate operations, thus are more inclined towards companies that show genuine commitment to remedying their own harmful impacts.

Professor Dionne Nickerson’s work encourages businesses to strategize their CSR efforts wisely, focusing on actions relevant to their operational harm, and communicating their goals and accountability effectively. By doing so, they stand to benefit not just society and the environment, but also their own bottom line.

Read more:

• Research brief
• Interview with the author
• Research summary and presentation
• Full journal article

In today’s interconnected world, our individual health decisions have a significant impact on the fabric of society. Professors Helen Colby and Meng Li shed light on this topic in their enlightening article. They delve into a specific example: the annual decision to get the flu shot.

Contrary to what one might expect, presenting logical facts about the flu vaccine’s benefits doesn’t typically convince people to get the shot. This reality is alarming, considering that around 60% of Americans opt out of their annual flu vaccination, indirectly posing risks to the most vulnerable populations.

Colby and Li’s research presents an innovative solution – showcasing the flu shot as a ‘bargain deal’. Explaining the financial value of flu shots proved to be a more potent motivator for vaccination than listing health benefits. In a world where most can get the vaccine for a fraction of its actual cost, this strategy could tap into our inherent desire for good deals.

Another interesting finding is the power of specific planning or ‘implementation intentions’. Assisting people in making a concrete plan about when and where they’ll get their vaccine significantly increases the likelihood of follow-through.

Ultimately, the insights from the researchers aren’t restricted to flu vaccinations alone. They represent how, through innovative strategies, we can encourage decisions that contribute to a more sustainable and healthier society.

Read more about this research