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Leading academics from around the world gathered at Imperial Business School for the latest Theory and Applications of Contracts Conference, a biennial event bringing together cutting-edge research and real-world challenges.

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“Representation influences capital allocation” says Lara Cathcart at Imperial’s third annual Women in Finance event

Shamita Harsh — Mon, 14 Apr 2025 10:15:24 +0000

“Representation influences capital allocation” says Lara Cathcart at Imperial’s third annual Women in Finance event

Shamita Harsh Mon, 14/04/2025 - 10:15

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3 March 2026

Once characterised as a “boys’ club”, the finance sector is undergoing a cultural shift that is reshaping how decisions are made. Greater representation at senior levels is increasingly recognised as influencing how capital is allocated.

Imperial Business School’s third annual Women in Finance event explored how women are influencing capital markets and redefining leadership across sustainable finance.

An investment narrative that is rooted in embracing change

The keynote address was delivered by Hortense Bioy, former Head of Sustainable Investing Research at Morningstar Sustainalytics, who focused on building a more sustainable and inclusive financial future. She explored how geopolitical uncertainty has reshaped sustainable investing strategies, creating both complexity and opportunity.

“The media often debates whether ESG is dead,” Bioy observed. “What we are witnessing right now is an evolution of practices, a recalibration by businesses and investors alike. What’s fading is a version of ESG that relied heavily on labels and was often disconnected from financial outcomes, to make room for pragmatism and realism.”

Her message underscored the importance of data-driven research and thoughtful analysis in navigating rapidly changing markets. She also offered advice to young women entering the sector, encouraging attendees to embrace opportunity: “Step beyond your comfort zone. Visibility and persistence matter. No is rarely the end.”

“Through events like Women in Finance, Imperial Business School reaffirms its commitment to advancing women across the financial sector, creating space for leadership, visibility and meaningful dialogue.”

Lara Cathcart

Professor of Finance, Academic Director for MSc Finance and MSc Risk Management and Financial Engineering

Improving gender inclusion in sustainable finance

The panel discussion, moderated by Fiona Frick, Finance Advisory Board Member and Founding Partner at Circe Invest, examined how female voices are shaping sustainable finance, impact investing and fintech.

Lise Renelleau, Head of Research and Innovation for the IQ Lab at HSBC Asset Management, reinforced the importance of measurable impact. She expressed optimism that as access to high-quality data improves, ESG – once perceived as a top-down imposition – is increasingly being integrated into portfolio construction and reporting. While AI and advanced technologies can enhance data analysis, she stressed that human judgement remains essential in translating information into meaningful insight.

Kamini Banga, Chair of the Banga Family Trust, reflected on her experience working in India, where workplace equity was less established when she began her career. From identifying public healthcare investment needs in rural communities to overseeing family enterprise, she highlighted the importance of a just transition in emerging markets.

Zoe Jankel, Vice President and Senior Credit Officer at Moody’s Ratings, spoke about cultural change within organisations. She noted a shift away from expectations that women must conform to traditionally masculine leadership styles. Increasingly, authenticity is recognised and valued at senior levels.

The evening concluded with remarks from Lara Cathcart, Academic Director for MSc Finance and MSc Risk Management and Financial Engineering. Acknowledging the significant evolution in the finance industry, she reflected that there are still male-dominated pockets, especially at the senior leadership level:

“Representation is not simply about equity; it directly influences how capital is allocated, how risk is assessed, and how innovation is fostered. Through events like Women in Finance, Imperial Business School reaffirms its commitment to advancing women across the financial sector, creating space for leadership, visibility and meaningful dialogue.”

Note: This article's headline was updated from: “Representation influences capital allocation” says Professor of Finance at Imperial’s third annual Women in Finance event on 05.03.2026.

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Imperial Business School’s event showcased female leaders driving sustainable investing, ESG innovation and long-term value creation.

Main image: Imperial Business School | Fergus Burnett

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Are investors falling out of love with ESG?: Forbes quotes CCFI's Mike Wilkins

Evie Burrows-Taylor — Mon, 06 Jan 2025 10:38:43 +0000

Are investors falling out of love with ESG?: Forbes quotes CCFI's Mike Wilkins Evie Burrows-Taylor Mon, 06/01/2025 - 10:38

19 December 2024

Centre for Climate Finance and Investment

Does it pay to be a rule breaker in business?

Celia Moore — Wed, 27 Nov 2024 15:43:01 +0000

Does it pay to be a rule breaker in business?

Celia Moore Wed, 27/11/2024 - 15:43

28 November 2024

One of the first lessons we learn in life is not to break the rules – but new research from Imperial Business School reveals there might actually be perks to being a rebel in the business world.

Though organisations and nations alike set rules in an effort to constrain our worst human tendencies, for as long as there have been rules, individuals have been breaking them. And it doesn’t take more than a cursory look at the news to see how self-proclaimed rule breakers can succeed: take, for example, the belief of Elon Musk, one of the world’s richest inhabitants, that “the only rules are the ones dictated by the laws of physics. Everything else is a recommendation”.

Once behaviour deemed "dodgy" is normalised, it’s extremely hard to get rid of it

Indeed, rule breaking can appear to be a mandatory part of business. Yet there has been almost no research on the benefits of breaking rules – perhaps because social science has a conscience, and has preferred focusing on the penalties it elicits rather than its rewards. For rule breaking to be as normative as it is, individual rule breakers need positive feedback. So, we conducted a study to look at whether managers reward and promote employees who flout rules – and how far that encouragement might stretch.

What we discovered is perhaps sadder than it is surprising: managers do give rule breakers preferential treatment over their rule-abiding peers, providing they don’t overdo it.

Rule breaking in sports

Given the difficulty of identifying rule breaking with certainty in real-world contexts, we looked at how coaches reward rule breaking in ice hockey. Sports data are detailed and precise – unlike in the corporate world where there is evidence that some try to hush up transgressions. Why ice hockey? Players frequently infringe sporting rules – we looked at nearly 214,000 incidents – and referees penalise players immediately. Culprits are removed from play for a while, with knock-on effects on their short-handed team’s performance.

Our research found no evidence that team performance improved as a result of rule breaking

Using detailed data gathered over six seasons from the National Hockey League, and conducting an additional experiment to confirm our findings, we discovered that those who break the rules are rewarded by their coaches with extra playing time over the season. This is despite the fact that taking penalties risks losses for their teams.

The one silver lining is that coaches have a tipping point: the most rampant offenders – those whose rule breaking forces them to sit out for significant periods – are rewarded less. Largely, this preferential treatment is most obvious in the games with relatively low stakes, rather than during games that were pivotal to their team’s fortunes. And it was the minor, rather than major, rule infringements that brought rewards.

Fostering a rule-breaking culture

Another experiment we conducted backed up our findings and gave more insight into managers’ motivations for this risky and potentially counterproductive behaviour. Moderate rule breaking appears to elicit attributions of a player’s grit and commitment. But extreme rule breakers – while also perceived as demonstrating commitment – were also considered more of a liability, and thus less likely to be rewarded.

For rule breaking to be as normative as it is, individual rule breakers need positive feedback

Our findings are both troublesome and reassuring. What is concerning is that they imply that organisations foster cultures of rule breaking – such that it becomes normalised in daily business. A cynic might conclude that managers condone rule breaking because they believe it will bring benefits for themselves. In our work, no managers were required to explain why they were rewarding rule breaking.

They had discretion to make the call without the need for justification. Research has already shown that once behaviour deemed "dodgy" is normalised, it’s extremely hard to get rid of it.

The results of bad behaviour

There are a few reasons to take heart. Our research found no evidence that team performance improved as a result of rule breaking – if anything, it declined in the teams we looked at, although we didn’t identify any causal link for this association. Organisations should also be wary when their performance is in decline: when a team in our sample is performing badly, managers become more likely to reward their rule breakers than when they are on a winning streak.

This fits with previous research that finds people are more likely to take risks and break rules in competitive environments. In these circumstances, managers might interpret a willingness to push boundaries as a sign of commitment to a company or campaign.

For as long as there have been rules, individuals have been breaking them

Our work asks as many questions as it answers. We’ve only looked at situations governed by clearly defined rules – but what if these are hazy or open to interpretation in less regulated environments? What about rule breaking that is only observed by a few – rather than being clear for all to see on the ice? What is clear is that rule breaking does seem to be enabled by the people in charge. We need to know more.

This article draws on findings from "A (Bounded) Preference for Rule Breakers" by S. Wiley Wakeman (Stockholm School of Economics), Philip Yang (Paderborn University Business School) and Celia Moore (��ý).

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What Japanese philosophy can teach us about finding purpose in the workplace

Frank Brueck — Wed, 05 Jul 2023 08:20:17 +0000

What Japanese philosophy can teach us about finding purpose in the workplace

Frank Brueck Wed, 05/07/2023 - 08:20

28 June 2023

Adapting leadership styles and organisational culture can help businesses and their employees find purpose – and have a positive impact on the world

The Great Resignation, quiet quitting, climate quitting, fury quitting. These buzzwords can elicit an eyeroll, but they reveal the unpredictable nature of the contemporary job market. Employees increasingly expect employers to make a positive economic, social and environmental impact on the world – and are willing to walk away if they don’t.

This is a positive trend, but how can you and your organisation find purpose in an increasingly complex market? I believe the answer lies in Japanese philosophy.

Finding ikigai

Outside Japan, ikigai, which translates as “your reason for being”, is mainly discussed in the context of personal development. I’ve set out to explore how its principles can be transferred to a business context, looking at how companies can reach a point where they have a purpose and impact society in a positive way – without compromising business success.

So, what does it mean to be an ikigai leader or even an ikigai organisation? According to my model and assessment tool, which look at how closely leadership styles and organisational cultures align with the philosophy, the following four characteristics should be integrated at the same time:

1. What you are good at: knowhow, capabilities, skills, talent
2. What you love to do: passion, motivation
3. What the world needs: positive social and environmental impact, sustainability, corporate responsibility
4. What you need for the market: business acumen, understanding the market forces

Only when all four are incorporated into business life, both for individuals and collectively, can ikigai be reached.

This model has already been applied in the Leonardo Centre on Business for Society and Imperial College Executive Education’s Sustainability Leadership programme, which was awarded a prize by the Financial Times, Imperial’s Global Online MBA programme, and several leadership workshops and wellness programmes.

Value alignment matters more than ever before

Employees are no longer driven solely by financial motives. According to Deloitte, Gen Z employees value salary less than any other generation; given the choice of a boring job with a high salary or a more interesting role that doesn’t pay as well, Gen Z is fairly evenly split. Reflecting on the ikigai model can help employees better understand where they want to go and whether their organisation is helping them to achieve it, providing a valuable anchor when considering a career move.

Getting closer to a corporate culture based on a united purpose creates a more aligned team. This is all the more important when you consider Gen Z will account for 27 per cent of the workforce by 2025. If businesses want to attract and retain a new generation of talent, they need to demonstrate their commitment to people and the planet through concrete action.

Quitting isn’t always the answer

Often employees discover they can find a sense of purpose in the workplace by changing their organisation themselves. One Imperial Global Online MBA student said: “For me, the introduction of the concept of ikigai was ground-breaking. For so long, I had chosen to look away and ignore how empty I felt. Today… I am finding purpose right where I am, I understand now that I have full control over my perspective. I am initiating projects at work that bring out my creativity and passion rather than waiting for an opportunity to simply arrive.”

Deciding to make changes to your organisation requires bravery, and for there to be a chance of success, the answers to the following questions should be “Yes”:

Do I have enough motivation and passion to do it?
Does it energise me?
Is it good for the world?
Will the company survive?

Identifying the missing piece in your organisation

At an organisational level, ikigai can provide a guiding light, help you to identify where you need to make changes and what is missing, whether it’s the business model, staffing, organisational structure, vision or the mission. Finding the purpose of the organisation, ensuring staff love what they do and are good at it, needs to be balanced with what the market needs to ensure the business remains profitable and can survive.

So far, only one of the more than 200 organisations that underwent an assessment has achieved an ikigai business model. AimHi provides accessible and engaging online climate training and education, with the aim of empowering everyone to be part of the fight against climate change. What sets the business apart is its passion for making the world a better place coupled with its ability to read and understand the market well.

The first ikigai organisation being a sustainability startup corroborates my original hypothesis: smaller and younger organisations are likely to come closest to achieving ikigai. This seems to be because it’s easier to set up new structures from scratch, while changing an existing organisational culture is possible but requires a longer process.

The search for other ikigai corporations is still on, but my goal is to use this model to help change the way we think about work – both from a leadership, as well as from a corporate cultural perspective – to make finding purpose a reality in business all over the world.

This article draws on “IKIGAI for Leaders and Organisations: The Way to Individual and Collective Purpose and Meaning” by Frank Brueck (��ý)

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This 5 day on-campus Sustainability Strategies programme in London is designed for mid to senior-level managers who are accountable for or aspire to create and implement sustainable business strategies.

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How leaders can boost biodiversity through business

Pernille Holtedahl — Tue, 30 May 2023 11:09:39 +0000

How leaders can boost biodiversity through business

Pernille Holtedahl Tue, 30/05/2023 - 11:09

30 May 2023

We are facing a biodiversity crisis – but businesses can, and should, help solve it

Our planet is facing “the double, interlinked emergencies of human-induced climate change and the loss of biodiversity”, according to the World Wide Fund for Nature. Climate change is high on the corporate agenda, but biodiversity has historically received less attention from business. This is not a viable state of affairs: the financing gap for biodiversity conservation is estimated to be around $600–800 billion, which means private sector investment is crucial in tackling the biodiversity crisis.

Our new research looks into what drives some companies to voluntarily adopt biodiversity actions, and how and to what extent these actions can be scaled up. The full paper includes five case studies of different types of biodiversity action, covering the energy, water, cities, agriculture and insurance sectors.

Here, we summarise our findings in the energy and water sectors, and some of our recommendations for policymakers and businesses.

Biodiversity in the energy sector

Low-carbon energy projects like wind, solar and nuclear all have potential side effects that could exacerbate the biodiversity crisis. Acknowledging this, energy companies often have biodiversity policies, usually as part of a broader ESG strategy. However, these policies tend to lack data to show that they provide a net benefit to biodiversity, and there are strong indications that companies adopt them mainly to maintain licences, improve publicity or reduce reputational risk.

As for specific biodiversity investments in the energy sector, these tend to be a result of the regulatory process; they focus on mitigating adverse biodiversity impacts that are identified as part of an environmental assessment. They also tend to directly benefit energy projects, with biodiversity acting as a secondary benefit.

Climate change is high on the corporate agenda, but biodiversity has historically received less attention from business

For example, in Pakistan, Zephyr Power maintains mangrove forests to reduce coastal erosion. The objective is to protect wind farm infrastructure, but the forests also serve as nurseries for various aquatic species.

Nevertheless, our findings suggest there are clear financial benefits to energy companies working with nature, especially as investments tend to be low compared to overall project costs. Notably, though, we found there were no cases of companies pursuing biodiversity actions at scale as a primary objective, aside from when it was directed by regulation.

Rather, it appears biodiversity is pursued only when it delivers co-benefits or win-win outcomes alongside other objectives. That means regulation is an important driver and strong environmental impact assessment requirements may help to create the conditions for a net-positive impact.

Biodiversity in the water industry

Aquatic bodies support a substantial part of our planet’s biological diversity, but are under significant pressure from stresses including pollution and unsustainable use. Water companies tend to comply with regulation to control these impacts through the use of water treatment plants.

However, nature-based approaches – primarily planting and maintaining forests – are gaining popularity, thanks to their cost-effectiveness and co-benefits such as improved air quality, climate change mitigation, and protection of water supplies and infrastructure.

Accessing capital markets through green bonds offers a way to finance the acquisition of forested land. Green bonds allow funds to be raised quickly, provide a diversified investor base, and offer pro-environmental signalling that can lead to a green premium from investors.

Biodiversity is pursued only when it delivers co-benefits or win-win outcomes alongside other objectives

In the US, Central Arkansas Water used this approach, issuing a $31.8 million green bond in 2020. The proceeds went towards acquiring around 4,500 acres of forested land, with the remainder used to upgrade the existing water treatment infrastructure.

The investment is expected to increase both the quality and quantity of available water, securing supply and lowering treatment costs, with biodiversity improvements emerging as a secondary benefit. This shows that biodiversity enhancements can be an important co-benefit of cost-effective green infrastructure approaches.

Recommendations for policymakers and business

Overall, our case studies indicate that most corporations will not act on their own to preserve or improve biodiversity at the scale required to address the biodiversity crisis. This means policymakers need to put in place more stringent regulation and incentives to drive corporate action.

Critically, though, our case studies do show that companies are more likely to take relevant, impactful action when biodiversity impacts occur alongside co-benefits. For example, security of supply emerges as a primary driver of action in two of the five cases; those that rely directly on a healthy natural environment for their products have a clearer incentive to invest.

This offers a key avenue for policymakers, both to target incentives where they are known to work, and to identify biodiversity outcomes that require different incentives. On top of this, issues of scale and coordination, and the interconnectivity of large ecosystems, make it difficult for corporations to act individually – further pointing to a coordinating and catalytic role for policymakers.

The financing gap for biodiversity conservation is estimated to be around USD 600–800 billion

For companies themselves, we observe that biodiversity actions tend to be hidden among a range of objectives and aims. Addressing this by improving data measurement, sharing findings openly with partners, and incorporating findings into corporate decision processes could help to scale biodiversity action across the private sector.

Equally, short-termism in corporate management mindsets is a real challenge. Biodiversity investing can have prolonged and uncertain impact on timelines and may look more expensive upfront, but can be profitable in the longer term. Strategic long-term planning could have real benefits both for biodiversity and for companies’ bottom lines.

This article draws on findings from "Corporate Action on Biodiversity: An Exploration of Drivers", an independent expert analysis by Pernille Holtedahl, Alex Köberle and Iva Koci at Imperial Business School’s Centre for Climate Finance & Investment, with support from Impax Asset Management

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Why tackling climate change requires nothing less than a business revolution

Maurizio Zollo — Fri, 29 Apr 2022 09:29:27 +0000

Why tackling climate change requires nothing less than a business revolution

Maurizio Zollo Fri, 29/04/2022 - 09:29

3 May 2022

Protecting the environment and achieving net-zero emissions requires a radical assessment of how businesses operate. The Leonardo Centre on Business for Society is helping to accelerate that change

Climate change is arguably the biggest crisis to face humanity in our history. Indeed, such is the scale of the task ahead that, even if we achieve a number of significant environmental goals – including cutting emissions, recycling more, and developing new technologies such as carbon capture – it still might not be enough. To effect a true green recovery will require changes that are even more profound, and which involve a fundamental reassessment of how businesses operate.

We should also acknowledge that this revolution in the way companies think and act in the world will affect every sector of the global economy, and not just those responsible for generating the lion’s share of emissions. In some industries, of course – such as oil and gas, transport, and petrochemicals – the transition to a greener economy will affect their core products and processes. However, every company – no matter what products it makes or services it offers – has a pivotal role to play because each one forms a link in a larger supply chain. And the world’s ambitious net-zero targets will only be achieved if sustainable business practices can be embedded right across the global supply chain.

A new logic for business

If every company has a role to play in the green recovery, so too does every section of society – from politicians establishing the legislative frameworks and incentives to encourage desired behaviours, to voters, consumers and investors putting pressure on businesses to prioritise environmental concerns alongside revenue and profits. Finding a solution to the challenges of climate change will require nothing less than the reinvention of the role of business in our society or, as we have termed it at Imperial Business School, a new “logic for business”.

The “logic” underpinning a company starts with its business model but also feeds into its wider purpose and identity, its leadership mindset and culture, its growth and cooperative strategies, its incentive and control systems, and the actions and attitudes of all the partners in its supply chain. And while affecting a change this revolutionary is undoubtedly challenging, the good news is the positive environmental impact it creates can be equally transformative. It is estimated that around 1,000 of the world’s largest multinational companies and their supply chains account for 70 per cent of global GDP. So if this relatively small group of companies can reinvent themselves to achieve net-zero, the world will be well on the way to doing the same.

Our role

So how are we, at Imperial Business School, helping to bring about this change? We have established the Leonardo Centre on Business for Society, a multi-faculty centre of excellence based at Imperial whose purpose is to collaborate with businesses, policymakers and civil society to develop business models capable of meeting the environmental and social challenges of the 21st century. The Leonardo Centre currently collaborates with 15 research centres and brings together a global community of 150 scholars.

One unique and valuable tool at our disposal is the GOLDEN dataset, which tracks the actions companies around the world have taken since 2000 to support environmental and social regeneration. By analysing and modelling this dataset with the help of advanced machine-learning algorithms, we are able to identify the optimal combination of initiatives to address societal issues such as inequality and climate change. The Leonardo Centre’s goal is to identify sustainable actions by companies in each economic sector that have proved successful and then share these insights with others to further accelerate change.

The ultimate ambition is therefore to create a new logic for business so companies can achieve sustainable growth while serving not only the interests of their clients and investors, but also those of their employees, suppliers and local communities. Protecting our environment and achieving net-zero will require radically new ways of thinking and working. This is why we are encouraging business leaders, policymakers and academics to work with us to find the best and quickest way of getting there.

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6 ways to reduce the environmental impact of your business

Milica Fomicov — Fri, 04 Mar 2022 12:37:24 +0000

6 ways to reduce the environmental impact of your business

Milica Fomicov Fri, 04/03/2022 - 12:37

7 March 2022

Imperial Business School Research Associate Mili Fomicov reveals six ways you and your business can help in the fight against climate change

It is now widely accepted that climate change exists and that there are ways we can help to stop the worst of its effects.

With rising temperatures affecting business performance, it's understandable – not to mention desirable – that there are business leaders who want to be part of the solution. While this is easier to achieve in some sectors than others, there are some obvious ways to help move your organisation in the right direction.

The financial argument for doing the right thing

We cannot rely on the conscience of all CEOs to do the right thing. That's why executive compensation should consider not only economic profit, but also material environmental metrics, with companies disclosing how the relevant climate issues tie in to their executive compensation.

There are solid financial arguments for reducing environmental impact. Historically, environmental externalities haven’t been priced accordingly, sometimes requiring governments to intervene. But this is changing and the market has started to price certain externalities, with a number of stakeholders and market participants now very focused on this issue. As a result, investors are now penalising those who are contributing to high emissions, biodiversity loss, and air and water pollution.

You must measure your progress by using transparent and consistent metrics

Consumers are increasingly demanding products and services with a more responsible environmental ethos and there are opportunities for businesses to capitalise on this while doing the right thing for the environment. If competitors take this road and leave others behind, it will eventually impact the others' bottom line. Environmental issues will be increasingly important for all businesses and their value chains.

But what are the best ways to reduce your environmental impact?

1. Formally commit

It should start from the top and run through the business. Businesses should empower and incentivise employees to generate ideas, provide rewards for environmentally conscious travel options, even persuade them to adopt practices in their own lives away from work through employee perks. But if the commitment doesn’t come from the top, it will be difficult to have an effective and well-coordinated environmental strategy.

2. Invest

This is the best way to honour your commitment and move the dial. The amount of capital required to decarbonise and become more sustainable is significant, so don’t be shy in showing how much of your capital expenditure is going towards sustainability and decarbonisation. We would all certainly love to see the data.

3. Innovate

Be innovative in the way you run your business, in the products and services you create, in the positioning of your brands. If you have a financial business, consider green and transition financing that not only positions you as a climate friendly business, but allows your customers to borrow more cheaply to "go green", transform their businesses, and reduce their own environmental impact.

4. Be transparent

You must measure your progress by using transparent and consistent metrics. Too many companies are talking about their commitment to the cause, but finding creative ways to avoid showing progress (or the lack thereof). Make sure that those accountable for your transition plan are empowered to make radical changes, as well as responsible for showing clear metrics towards your environmental goals.

5. Learn

Few businesses will have the expertise in-house to develop an environmental strategy and net-zero plan. Seek outside expertise to assess your environmental impact and design a cost-effective decarbonisation strategy. Provide climate training for your employees so they have agency to make informed decisions and be your partner on this rewarding journey.

6. Be patient

This is a marathon, not a sprint. Your strategy should encompass small, achievable steps which immediately demonstrate you are committed to reducing your environmental impact. But there must also be medium and longer term goals, which will have a greater impact, but take longer or require more investment. You must play the long game.

Reducing your environmental impact is not only necessary to protect this planet, it’s a sound business strategy that can add to your bottom line provided you are truly committed, transparent in your activity and investment, and creative in the way you approach this challenge and engage your stakeholders.

This is not optional, and an increasing number of businesses are waking up to it very late in the day. You really don’t want to be the most polluting company on the block, or to wait until it’s game over.

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Mili Fomicov, Researcher at Imperial Business School’s Centre for Climate Finance & Investment, tells us why all industries need to act urgently in the fight against climate change

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Could engaging in corporate social impact work damage your career?

Michelle Rogan — Fri, 04 Feb 2022 11:59:07 +0000

Could engaging in corporate social impact work damage your career? Michelle Rogan Fri, 04/02/2022 - 11:59

7 February 2022

Corporations are increasingly offering employees the chance to engage in social impact work. But is doing social good also good for your career?

These days many people are looking for more from their professional roles than the duties listed in their job description, and they expect their employers to provide them with the opportunity to explore meaningful work beyond the corporate world.

Companies that meet these expectations have a lot to gain. Studies show that they benefit from improved recruitment, mitigation against adverse employee behaviour and employee retention. However, it does not necessarily translate that those who volunteer actually benefit in terms of career advancement. In fact, we have found that in some cases, it can hold them back.

For men, it may be career damaging to take part in socially motivated work

We carried out two studies which revealed some of the reasons for this unexpected consequence of corporate social initiatives (CSI). For the first study, we used human resource data on 1,379 employees in a large multinational consulting firm to observe employees’ project assignments, including their participation in social impact initiatives, and crucially, the rate of promotion from the rank of consultant to manager over a five-year period.

In a second study, we asked nearly 900 middle managers across different companies in the UK and US to evaluate a fictional accountancy employee up for promotion. The managers, a mix of men and women, were all experienced in hiring and promoting. Everything about the fictional employee profile was identical except gender and job history. The fictional employee named Amanda or Matthew had either undertaken a spell of social impact work or completed a commercial project for a corporate client.

Gender as a key factor in promotion effects

Together, the results of the studies revealed a critical factor affecting decision makers’ judgments regarding promotions of employees who participated in social impact work: gender. But in a different way than is usually observed in studies of gender bias in organisations.

Our first study showed that male employees who did CSI projects were less likely to be promoted. In our second study, we discovered that the gender of the manager making the decision also mattered. Male managers penalised male employees more than females for undertaking CSI projects, rather than profitable corporate work, and hence were far less likely to recommend them for promotion. But when a male manager assessed a female employee, whether she’d undertaken social impact work or not made no difference to the likelihood of promotion. Nor did female managers discriminate in any way towards either men or women.

We also investigated why. Our experimental design meant we could rule out effects of all employee characteristics other than the social impact work, such performance, tenure or education. Instead, our experiment revealed that male managers judged men who carried out social impact work as not being the right “fit” for the company.

For their female counterparts, again it made no difference. These results reinforce research that shows we expect men and women to conform to strict gender stereotypes and social norms in the professional environment. Unfortunately, for men, it may be career damaging to take part in socially motivated work.

The problem with gender stereotyping in the workplace

Communal, service-orientated behaviour associated with social impact work is closely related to the behaviour expected of women. Men are often penalised for succeeding in jobs with these characteristics because their success violates stereotypical ideals of men’s roles in society.

Over recent years, corporate social initiatives have acquired strategic business importance and numbers have soared. But our research calls attention to the gendered nature of CSI work and the potential for negative career consequences for those who in engage in it, as well as the evaluators’ gender bias in promotion decisions.

Corporate social initiatives give employees the chance to engage in philanthropic projects and contribute to society

It also reveals a previously unidentified tension between business and society. A firm’s efforts to engage with society through employee initiatives may conflict with its members’ gender beliefs, consequently limiting male employees’ ability to contribute to the firm’s social impact agenda. It may also signal a new form of job segregation by gender that is harmful to female employees. If only female employees fill these types of roles, the social engagement of firms risks becoming only women’s work as business engages with society.

One worry is that these socially orientated positions may be viewed as less valuable than commercial ones, meaning women may inadvertently assume roles that have poorer longer-term career prospects, even though their near-term promotions remain unaffected.

For social impact work to deliver benefits, attitudes within the corporate world must change and gender beliefs be updated. This is a challenge not only for business but for all of society.

This article draws on findings from “Up to No Good? Gender, Social Impact Work, and Employee Promotions” by Christiane Bode (Imperial Business School), Michelle Rogan (Imperial Business School) and Jasjit Singh (INSEAD).

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