ISB Paper Series: Competences of Social Bankers

7/26/2019 ISB Paper Series: Competences of Social Bankers

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Competences of social bankers.

A critical review of a body of knowledge with a

proposal to integrate dilemma management.

An assignment within the MA Social Banking and Social Finance

University of Plymouth and Institute for Social Banking

Mode: Critical review of a body of knowledge

Module: The Management of Social Banking and Social Finance

Code: MESB502

Student reference number: 10341221

Submission Date: 30 September 2011

Katharina Beck

Kyffhuserstrae 14

50674 Kln

Germany

[email protected]

0049 176 23 17 57 79


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Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.Katharina Beck

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This assignment critically reviews the body of knowledge regarding the question: What

competences enable social bankers to excellently perform their job? First, a look into literature of

vocational pedagogy and Human Resource Development sharpens the understanding of what

can be understood by the term competence. Subsequently, equipped with a constructivistic

method, the author analyses existing definitions of specific competences of social bankers. These

focus much on values and personal competences of social bankers. Social banks multi-

dimensional core business and values can lead to dilemma situations. To cope with these

situations, dilemma competence is proposed to be included in the competence definitions of

social bankers on the performance level. Based on literature of sustainability management, the

author develops a concrete decision making process to deal with dilemmas in the field of social

banking.


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Image index....................................................................................................................................................2

1 Introduction............................................................................................................................................3

1.1 Topic.................................................................................................................................................3

1.2 Sources and Methodology............................................................................................................. 4

1.3 Ethical and other considerations..................................................................................................5

2 Competences...........................................................................................................................................5

2.1 Competences in the fields of vocational training and HRD....................................................5

2.2 Constructing a competence definition.........................................................................................7

2.3 Intermediary result..........................................................................................................................9

3 Specific competences of social bankers..............................................................................................9

3.1 The context: social banks ..............................................................................................................9

3.2 Critical review of existing competence definitions of social bankers ...............................10

3.2.1 Specific competences: Focus on values .............................................................................11

3.2.2 Holistic view...........................................................................................................................12

3.2.3 Focus on individual responsibility ......................................................................................14

3.3 Dilemma competence ..................................................................................................................14

3.3.1 Two cases of dilemmas in social banking..........................................................................15

3.3.2

The challenge to decide on equally important values ......................................................15

3.3.3 Proposal for a decision making process in dilemma situations......................................16

4 Conclusion and outlook......................................................................................................................17

5 Bibliography..........................................................................................................................................18


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Picture 1: Competence cluster by Sloane et al (2004). ............................................................................6

Picture 2: Competence dimensions in a reference model by Schlmer (2009)...................................7

Picture 3: Competence dimensions and forms of learning by Arnold & Gonon (2006: 97). ...........7

Picture 4: The boundary approach of constructing a competence definition by Stoof et al (2002:

353) ........................................................................................................................................................8

Picture 5: "The perfect social banker" (Verhagen 2010) ......................................................................12

Picture 6: A perfect social banker, designed by co-workers of GLS Bank, Germany .....................13

Picture 7: Dimensions of existing competence definitions of social bankers. ..................................14


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1.1

Topic

Every organisation depends on the individuals who constitute the organisation. The co-workers

knowledge, skills and values essentially contribute to the success of an organisation. This paper

reviews the existing body of knowledge on what makes persons who work in social banks

competent and successful social bankers.

From a macro-economic viewpoint, banks as intermediaries between borrowers and lenders

enable the functioning of the real economy by the efficient allocation of resources. From a

micro-economic viewpoint, private banks, being businesses, work with the business objective to

maximise their profits. Co-workers of a bank, just like in any other organisation, contribute to

achieving the goal of their organisation, which in business is to maximise profits. Overall

commercial competences enable them to do so.

Social banks business objectives explicitly lie not in maximising profits (Scheire and Martelaere

2009). Their goals focus on their role as servants to and enablers of the real economy. They make

use of their unique role as allocators of money with the aim to further the common good

(Institute for Social Banking 2011). Social banks (also called ethical, values-based, green,

sustainable or mission-driven banks) do not have one measurable goal (more profit), but

base their activities on the triple bottom line of people, planet and profit. Social bankers, like co-

workers in general, need to contribute to achieving the goals of their organisation. As the goals of

social banks are different from conventional (banking) business, social bankers are assumed to

need specific competences to perform their job properly, in addition to their banking and

financial know-how (Cabarrubia 2010; Khn 2005).

What are the (specific) competences of a social banker?

I work at the Institute for Social Banking (ISB), an organisation whose mission is to inspire and

train persons for social banking. We conduct seminars, workshops, lectures, trainings and a

summer school on social banking. To generate more knowledge from practice and to reflect on

this practice, we have also developed the MA Social Banking and Social Finance. As a basis for

the design of our offers we have taken and developed several assumptions and views on social

banking specific competences. Most of these are based on practical experiences of closely

related persons to social banking and finance, including the founder of the institute and the co-


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workers of the ISB (including myself). However, since the foundation of the institute there hasnt

been a review on what others and we at the ISB understand as competencies for social bankers.

So, with this paper I intend to reflect on and further develop my / our own understanding of

competences of social bankers.

The relevance of the question is closely connected to practice: social banks are growing quickly in

terms of balance sheet and number of co-workers. The need for training on social banking

specific competences increases as many new co-workers come from conventional banks who

need to learn about social banking to ensure that they are able to contribute to the multi-

dimensional goals of their values-based company (Cabarrubia 2009).

1.2 Sources and Methodology

This paper is written in the mode of a critical review of a body of knowledge within the MA

Social Banking and Social Finance. This programmes method is practice/ action research.

Roughly spoken, in practice research, sources in a body of knowledge may include any relevant

information from practice if used in a reflective manner (Moser 2003). So, in addition to

reviewing published literature on the research question, amongst others also internal files,

(unpublished) texts, power point presentations and interpersonal talks (narrative interviews)

may serve as a basis for this paper. Another special aspect is the reflection on and further

development of on own job-related experiences, papers and thoughts.

How is the topic approached logically?

At first, the term competence(s) needs to be clarified and/or explained (chapter 2.1). As there

is no one and only definition of competence, I present the boundary approach of competence

that in my view can enable a sharper view on the existing descriptions of competences for social

bankers (chapter 2.2).

Secondly, I look at specific characteristics of social banks (chapter 3.1). Thirdly, equipped with

the boundary approach of competence, I review and critically reflect upon existing definitions

on the specific competences for social bankers (chapter 3.2). As there is no academic literature on

this topic, this includes working papers of the ISB, power point presentations and oral and

written communication with persons within the social banking sector.

Finally, I propose to broaden the definitions of competences of social bankers by integrating

dilemma management. I develop a concrete process of how to deal with dilemma situations

(chapter 3.3).


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1.3

Ethical and other considerations

I include views and opinions in this paper that resulted of personal talks or emails. The authors

of these opinions were informed about my research interest before they gave me their answers

and they consented that I may cite and use their opinions.

I critically reflect on the working practices of my own employer. In a situation of economic

dependence, one might hesitate to objectively criticise. However, as the ISB is a training and

research institution actively fostering critical reflection, I did not feel biased in my evaluation of

the existing ISB approaches to competences of social bankers.

I have a look at my own working practices, what in conventional research is uncommon as I mix

my roles as researcher and as research object. However, this lies in the very nature of action and

practice research. I try to maintain a conscious balance between my two roles. In addition, I am

aware that I am not a social banker or practitioner myself, and therefore have only intermediate

information on the every-day working practices of social bankers.1

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Competence is a term used in many ways in every-day and professional life usually without

reflecting on how we use it. It is important to detect individual views and underlying assumptionson the term competence (Stoof et al 2002). Imagine a competent teacher, a competent banker or

a competent sailor. To me, competence in all three cases means to be able to excellently

perform a job. The specific competences themselves though differ depending on the job

situation. Competence can also refer to a status or an allowance, e.g. to have an externally

attributed competence to decide something.

2.1

Competences in the fields of vocational training and HRD

My basic understanding and working definition of competence for this paper is the ability to

excellently perform a job (more specifically: what does it take to excellently do social banking?).

As the research question is related to job-specific competences, we can narrow down the

literature scope to the fields of vocational education / training / pedagogy and Human Resource

Development (HRD). Reviewing textbooks in these fields (Arnold & Gonon 2006; Huisinga &

Lisop 1999; Sloane et al 2004; Swanson & Holton 2009)2, the following picture can be drawn:

1In the course of this paper, the 1stperson plural is used for a meta-perspective on the assignment. When I use the1stperson singular, I refer to my own thoughts and activities that contribute to the content of the assignment.

2The content of the following paragraphs is based on these sources if not otherwise indicated.


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Within the last two decades, competenceshave become an integral and central part of the general

language in vocational education. They have often been integrated in the development of

trainings and other HRD activities. Lists, schemes and dimensions of competences and,

connected to these, certificates for competences, have become very popular.

That competence means an ability to perform well in a job is a tacit agreement in literature.

However, beyond this understanding, there is no clear definition of competence. Boundaries of

its meaning blur when comparing it with other terms like expertise, qualification or capabilities.

Arnold and Gonon (2006: 96-98), for example, see an increasing overlap between the terms

competence and qualification within the last 20 years. Earlier, competence had been associated

rather with subjective complex abilities of the individual, qualification as the ability to conduct a

task in a satisfying way. Today, in Arnold and Gonons view, the term competence is used for

both: individual personal competences and task-specific competences. These then lead a person

to excellently perform her3job.

Competence definitions today have an overarching character. A common view is to see them as a

combination of knowledge, skills and values/attitude (e.g. Perry 1995 in Stoof et al 2002: 347).

Another possibility to conceptualise competence is by dimensions. These often include job-

specific/functional/professional, methodological, communicational, social and/or self-

management competences

4

(Figures 1-3 show different models and ways to present dimensionsof competence). These dimensions serve as a basis to then list specific competences inside each

dimension.

Picture 1: Competence cluster by Sloane et al (2004).

3I use the female pronoun only, the male pronoun should be read as implicit.

4Many other names for dimensions can be found, e.g. language comptence, ethical competence,


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Picture 2: Competence dimensions in a reference model by Schlmer (2009).

Picture 3: Competence dimensions and forms of learning by Arnold & Gonon (2006: 97).

Available schemes, lists and tables to define competences are so manifold that some already

speak of an inflationary use of competence dimensions (Sloane et al 2003: 163). Arnold (in

Huisinga & Lisop 1999: 94) questions the strengths of the term competence for vocational

pedagogy and is interested if competence is only a nice metaphore (Wrmemetapher) or really

an analytical category.

2.2 Constructing a competence definition

Our understanding of competence to be able to excellently perform a job has not been

disproved. But exploring competence definitions in the field of vocational pedagogy and HRD

has not led to objective clarification of how to further conceptualise competence.

This goes hand in hand with the observation of Stoof at al (2002: 347) who argue that the one

and only true competence definition does not exist nor will ever be found. Maybe it is so hard

to clearly define what competences are because they are complex constructs and not

objectively observable concrete actions. The problem might lie in the objectivist claim itself, to

find the one and only true definition.


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Constructivism can help here (de Haan & Rlcker 2009; Stoof et al 2002; Kraker et al 2007).

From a constructivistic perspective, it is not the final goal to find the one and only true

definition of a term, but that the definition should be viable5and adequatefor the context in

which it is being used (Stoof at al 2002: 347). In addition to the general advantage of this

pragmatic approach not to get stuck in discussions on the wording of definitions, the goal of

practical viabilitygoes hand in hand with the practitioner relevance that this paper aims to have.

Stoof et al (2002) propose a methodology to construct ones own competence definition, and in

my opinion, it can serve to sharpen ones eyes on existing competence definitions as well.

Therefore, parts of their approach can help to better analyse the body of knowledge on the

competences of social bankers (see chapter 3.2).

At first, Stoof at al (2002) propose to analyse the situation: Who are the persons who design thedefinition (people), what is the definition going to be used for (goal) and what are the

characteristics of the organisation in which the definition is going to be used in (context).

After this, they introduce the boundary approach of competence (see figure 4), a method to be

flexible about the boundaries of ones competence definition.

Picture 4: The boundary approach of constructing a competence definition by Stoof et al (2002: 353)

A definition of competence is defined from inside-out reflecting on several bi-polar

dimensions of competences.

1. Is it a personal competence or a task-specific competence?

2. Is it a competence needed for a single individual or for a team / a group of people

(distributed cognition (Salomon 1993 in Stoof et al 2002: 354) and systems thinking

(Senge 1990 in Stoof et al 2002: 355))?

5The term viability is taken from von Glaserfeld (1995) in Stoof et al (2002: 347).


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3. Is it a specific/crucial (for a specific function) or a general/universal competence (within

an entire domain or profession)?

4. Do we understand competence as different levels (e.g. from novice to expert) or as a level

itself?

5. Do we assume the competences to be teachable or not teachable? (Knowledge and skills

are often regarded as teachable, values and attitudes not (Parry 2006 and Spencer &

Spencer 1993 in Stoof et al 2002: 356))

In the outside-in approach, Stoof et al (2002: 357-361) illustrate how to sharpen the

terminological hygiene of competence, by presenting concrete examples which unravel

intuitive understandings of competence and related terms like performance, qualification,

capability, ability, knowledge, skills and attitudes, and expertise.

It is then the task to use the ingredients of both approaches to define competence. As this might

result in reviewing earlier assumptions and in further discussions, the exercise of defining

competence can also be considered as a process of increasing awareness (Stoof et al 2002: 362).

2.3 Intermediary result

With the constructivist perspective on competences, we have gained flexibility to look at existing

views on competences for social bankers openly and do not depend on a one and only definitionof competence. We accept that boundaries of competence definitions might be blurry.

Constructing a competence definition is a matter of choices. (Stoof et al 2002: 361) We have

chosen to understand competence as the abilities to excellently perform a job and that we do

not want to get stuck in discussions about the right competence definition. Therefore, we can

also use words like knowledge, ability, capabilities, skills or expertise if they help to answer our

research question. We know that definitions of competence can be composed by several

dimensions (such as professional, methodological, social, self competences) and by knowledge,

skills and values. With the boundary approach of competence, we have a structured methodology

to sharpen our review on existing competence definitions of social bankers.

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3.1 The context: social banks

Before we apply our sharpened competence lens on the existing definitions of specific

competences of social bankers, we need to remind ourselves of the specific job-environment in


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which social bankers work: social banks. In Europe, in nearly every country there is a social bank6

or socially oriented financial service provider7. Even though each of these banks has their own

unique mission and history, there are several common denominators of social banks.

They are values-driven (De Clerck 2009) organisations with the aim to further the commongood (Institute for Social Banking 2011). The motivation to support participatory, ecological,

social or cultural projects in society drives them. Already the slogans of these banks imply their

mission-driven self-perception: Todays bank for a better tomorrow (Alternative Bank

Switzerland), The highest interest is for all (Banca Etica, Italy) or A different bank for people

who want a different world (Charity Bank, UK).

As businesses, social banks need to generate income, but maximising profits is not the goal of a

social bank (Scheire & Martelaere 2009). Their explicit focus is on the impact they have on thereal economy (what is financed). With positive and negative criteria they select projects and

investments in the social and ecological domains. Most social banks transparently publish where

they invest their customers money. This goes along with their value to be in an open dialogue

with all their stakeholders.

Social banks are committed to the triple bottom line of people, planet, profit (GABV 2011)

and clearly connected to the concept of sustainable development or sustainability8, with its typical

three pillars: the social-cultural, ecological and economical dimension. The core business of socialbanks therefore is multi-dimensional, pursuing multiple goals.

What competences does it take to work in a bank committed to sustainability? What do the

existing definitions of competences of social bankers say?

3.2

Critical review of existing competence definitions of social bankers

Following Stoof et als (2002) approach the first questions to answer when looking at

competence definitions are: Who defined the definition (people), for what goal and for which

context?9

6As mentioned in the introduction, social banking can also be called sustainable, ethical, values-based or mission-driven banking. With the term social banking, we embrace all these meanings.

7Social banks or socially oriented financial service providers in Europe (in alphabetical order; members of theInstitute for Social Banking): Alternative Bank Schweiz (Switzerland), Banca Etica (Italy), Charity Bank (UnitedKingdom), Clann Credo (Ireland), Cultura Bank (Norway), Ecology Building Society (UK), Ekobanken (Sweden),GLS Bank (Germany), GLS Treuhand (Germany), Hannoversche Kassen (Germany), La NEF (France), MerkurBank (Denmark), Triodos Bank (The Netherlands, Belgium, UK, Spain, Germany).

8

Sustainable development and sustainability are used synonymously in this paper. We are aware thatsustainability in conventional banking often refers to long-term economicsustainability (i.e. financial returns) only.However, this is not how sustainability is understood in social banking.

9The following overview does not aim to be complete, but mirrors what I have come across in my job.


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Some individual co-workers of social banks, HR departments of social banks and the Institute for

Social Banking have to my knowledge so far developed explicit views on the specific

competences of social bankers (Cabarrubia 2009; Verhagen 2010; Khn 2006; Institute for Social

Banking 2007; Beck 2010; Kufer and Beck 2011). The goals of these definitions were connected

to create learning environments for co-workers of social banks, e.g. with the aim to develop the

human capabilities to deliver sustainable banking (GABV 2011a). The definitions have been

used in different contexts. First, within the social banks themselves, second, within the trainings

and offers of the Institute for Social Banking, for example.

3.2.1 Specific competences: Focus on values

A general understanding of the competence of a social banker is that it is a mixture of

1. Banking skills and

2. Ethical know-how / values (Cabarrubia 2009).

This is also reflected in the training activities that social banks offer. In 2010, I conducted a study

on the HR activities of the member banks of the Global Alliance for Banking on Values

(GABV). A general result was that trainings focus on banking techniques, and in addition, the

social banks HR departments offer seminars on the values, the mission and/or the roots and

history of their organisation, or on ethics in general (Beck 2010a). The HR managers expressed

the need to get into dialogue with each other about what makes a social banker a competent

social banker. So, the question of the profile of the perfect social banker apparently still

remains open, but the assumption in each bank is that the specific competences of a social

banker (those needed in addition to normal banking techniques) are connected to the specific

values of their organisation.

When the MA Social Banking and Social Finance, the first official programme worldwide to train

social bankers, was developed, values played an essential role as well:

Managers and employees in th[e] field [of social banking] should have soundknowledge of conventional finance but also be able to further develop serviceproviders and organisations in the financial sector on the basis of autonomouslydeveloped values. (Institute for Social Banking 2011a)

This focus on values and the mission of social banks is also mirrored in the specific

competences for co-workers in social banking which the founder of the ISB, Khn, developed

in 2006:

! Ability to listen and an interest for the customers and for the world

! Entrepreneurial self-reliance concerning content, project management and the

biographical working situation


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Communication and team competence

Values Competence (Ability to formulate values, to form an own opinion, and a

participation in public networks) (Khn 2006: 1)

Taking a dimensions approach, Khn then diversifies the competencies of a social banker intoprofessional, methodological, social and self competences. The concrete competences listed

below these categories focus on knowledge on social banking specific topics and the values and

basic human characteristics of a social banker (e.g. knowledge of Weltanschauungenand

philosophical backgrounds of social banking, ability to conduct a dialogue on values, empathy,

ability to trust and to receive trust) (Khn 2006: 1-2).

3.2.2 Holistic view

Interpreting Khn, being a social banker does not only mean to be committed to values, but also

to bring in oneself as a whole human being. This holistic approach is mirrored in the following

picture (picture 5), designed by Els Verhagen (2010), HR Manager of Triodos Bank. Her perfect

social banker performs her job entirely, with head, heart and hand.

Picture 5: "The perfect social banker" (Verhagen 2010)

As well Francisco Cabarrubia (2009), head of the Zurich branch of Alternative Bank Switzerland

(ABS), says that a values-based bank needs co-workers who

Have an intrinsic motivation (personal values and goals)

Are values-based / can identify with the organisational culture (social-ecological goals

before profit)

Have a conscious behaviour and reflection of values

Do not only pursue monetary goals.


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Amongst others, ABS demands of its co-workers a strong ecological interest. In practice, this

might include that a person is expected to set value on a low carbon mobility also in personal life

(Cabarrubia 2009: 13-15).

In my own trainings with co-workers of a social bank, I ask participants to design their ownperfect social banker and/or to list the competences a social banker should have (see picture

6).

Picture 6: A perfect social banker, designed by co-workers of GLS Bank, Germany

The results are similar. A social banker e.g. eats organically, wears organic cloths, reflects on

the meaning of money, has a vision of a better world. I sometimes call social bankers super

bankers (Beck 2011) who combine the technical banking know-how with a save the world

ambition, knowledge on eco-social topics and great abstraction competences.

Using the five dimensions of the inside-out approach of Stoof et al, the existing definitions ofcompetences of social bankers have the following characteristics (see picture 7):

1. Verypersonal(vs. task-specific)

2. The whole group/ team needs to have the competence (vs. a single individual)

3. It is a universalcompetence within the entire domain or profession (vs. for a specific

function)

4. The competence has to be present on different levels(vs. being one stage in the course of a

development)


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5. If these competences are teachablehas not been topic of most of these definitions. Most

scholars assume that formally teaching values is hardly possible (Stoof et al 2002).

However, the training offers of the Institute for Social Banking try to do exactly this.

Picture 7: Dimensions of existing competence definitions of social bankers.

3.2.3 Focus on individual responsibility

Not only a holistic view on the social banker is a unifying aspect of these competence definitions,

but also that the competences of social banking are very much connected to individual

responsibility (dimension 1 in Stoof et als scheme). This view seems to be common in concepts

of competences for sustainability in general. For example, the Sustainability Balanced Scorecard

or the Sustainable Excellence Concept both focus on an active and self-responsible role of the

individuals in the organisation (Schlmer 2009: 51). This goes hand in hand with the

understanding at the ISB that training competences for social bankers needs to take into account

the personal reflection of each professional, an essential methodological part in the MA Social

Banking and Social Finance and the Certificate in Social Banking (Institute for Social Banking

2011b: 6). Both make participants critically reflect on their own working environment, including

themselves as a person, and take a self-responsible attitude towards their work.

3.3

Dilemma competence

The definitions of specific competences of social bankers focus on the subjective complex

abilities of the individual and not so much on the task or performance related competences

(Arnold and Gonon 2006). But what das it mean in concrete decision making situations to be

values competent?


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3.3.1 Two cases of dilemmas in social banking

In 2010, two social bankers within the MA programme led an Open Space session10with the

question where to draw the line? Their bank had to decide whether to finance new solar plants

of an energy company that at the same time still generated a small percentage of their energyfrom nuclear power. Nuclear power is on the negative list of their bank, solar plants on the

positive list. Should they finance the increase in power generated by renewable energies or should

they refuse to finance a company at all that is involved with nuclear energy (even though with a

clear strategy to reduce this percentage)? The dilemma in this case even has two levels: the

decision-makers have to decide whether it is more important to foster renewable energies or to

stick to once set rules regarding nuclear power (both on the values / eco-social dimension); the

economic interest of a bank to finance the project conflicts with the socio-ecological hazard to

finance nuclear energy. Which value weighs heavier?

Or what about financing an organic wine farm (also a real example)? Alcohol, due to the (social)

danger of addiction, is on the negative list of most social banks, whereas supporting organic

agriculture is one of the (ecological) branches in which social banks engage. The economic

situation would favour financing the project. Is it more important to stick to the negative (social)

criterion or to foster organic agriculture (ecological)?

3.3.2

The challenge to decide on equally important values

The triple bottom line of social banks can apparently lead to dilemma situations where the three

dimensions are not in harmony, but in conflict. A dilemma situation occurs when a choice has

to be made between at least two equally important and contrary alternative actions (Neuberger

2002 in Ehnert et al 2006: 358-359). One can either decide for A or for B. Dilemma situations are

crucial in sustainable businesses in general. According to Schaltegger et al (2007: 17), to integrate

the different dimensions is the largest challenge for enterprises that incorporate sustainability

into their management.

Dilemmas could be eliminated by a clear top-down prioritisation of the different values of social

banks. However, establishing a one-size-fits-all hierarchy seems to be impossible. On the one

hand, the mission statements and communications of social banks imply that their cultural-social

and/or ecological goals are more important than the economic dimension. On the other hand, as

businesses, social banks need to work economically efficient as well being unable to exist if they

dont. Also the ecological and the social dimensions sometimes conflict.

10As the MA aims at integrating the knowledge of its participants, we work with interactive methods like the OpenSpace method in which participants can spontaneously propose own workshop topics.


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3.3.3 Proposal for a decision making process in dilemma situations

How to constructively deal with dilemmas? According to Mller-Christ (2009) and Ehnert et al

(2006), one of the most important steps is, as undemanding as it sounds, acknowledging that

there is a dilemma. They observe that often in sustainability contexts, dilemma situations aresimply negated. Or they are taken to levels of abstraction where conflicting values are regarded as

complementary or as win-win-win-situations (even though they are not). If ignored, dilemmas

can become destructive as decisions in dilemma situations always lead to trade-offs (If I decide in

favour of A, I decide against B and vice versa).

A competent dilemma manager therefore needs to be able to emotionally baer the pain of

cognitive dissonance that a dilemma brings (Mller-Christ 2009: 25), a competence that can be

called tolerance for ambiguity or tolerance for ambivalence (Mller-Christ 2009: 22). Withthis tolerant mind-set, the dilemma manager then can try to constructively work with the tension

and complexity. This can include developing transparent decision making processes, for example

guided by the questions: What were the arguments for value A, what were the arguments for

value B? Why did we/I think that in the current circumstances the decision has to be made in

favour of A/B?

The decision making process in a dilemma situation could, in my opinion11, look as follows:

1.

Identifying and accepting the dilemma (e.g. alcohol vs. organic farming).

2. Bearing it.

3. If the decision is taken in a group, designing a transparent decision making process

(clarifying who has the right to take a decision and why)

4. Collecting arguments and values for and against both options, based on the organisations

and the individuals criteria and guidelines.

5. Constructively weighing the values and trade-offs involved.

6.

Making a decision.7. Transparently communicating about the process that led to the decision (including

arguments involved for both options and a comprehensive argumentation why the

decision has to be taken in favour of one of them).

With this transparent process the risk of dilemmas becoming destructive is reduced as both

options are respected and decisions are taken in a comprehensive way.

11I have developed this process based on reflections on various conversations I had with social bankers and onEhnert et al (2009), Mller-Christ (2009).


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ISB Paper Series: Competences of Social Bankers

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