In the 3rd Quarterly, we report on:

1. Insights from the Leading Wellbeing festival; video interviews
2. Processes underway to agree a human rights treaty on business; and a concerning lack of support
3. UN-published research on alternatives to microfinance; focusing on currency innovation
4. How to educate leaders for sustainability; research paper
5. Sustainable leadership spring school: Lake District & London, April 2016

1) Insights from the Leading Wellbeing festival; video interviews

Interviews on leadership for wellbeing and sustainability from are available as videos from the Network of Wellbeing. They include Charles Eisenstein, Nandita Das, Charlotte Millar, Jo Confino, Anna Zegna and Jem Bendell. They were attending an event with 200 people from 20 countries that was organised by IFLAS and Brathay. Lifeworth supported the web design and marketing. Some of the participants will reconvene in the Lake District on April 9^th for discussions, barn dance and a hike. If you want to join, please contact iflas@cumbria.ac.uk
2) Processes underway to agree a human rights treaty on business; and a concerning lack of support

In July meetings took place at the UN Human Rights Council to progress towards a new treaty on the human rights obligations of international companies. The process seeks to build upon the Guiding Principles on Business and Human Rights,” sometimes called the ‘Ruggie Framework’, and connect this to international law. In an article titled “Can CSR now support international law?” Professor Bendell looks at the response of WBCSD and others to this initiative.

3) UN-published research on alternatives to microfinance; focusing on currency innovation

At the UN summit on Financing for Development in July, the UN Research Institute for Social Development (UNRISD) published a paper that explains an emerging successful alternative to microfinance. It is co-authored by Lifeworth’s Jem Bendell, with Matthew Slater and Will Ruddick. As far as we are aware, it is the first UN paper to discuss the implications of Bitcoin and currency innovation.

4) How to educate leaders for sustainability; research paper

Lifeworth’s founder Professor Bendell will present a paper on leadership for sustainability at the International Leadership Association in Barcelona in October. You can download the paper (pdf), co-authored with Richard Little from the management trainers Impact International. It is highly critical of the way many trainers and business schools teach leadership and offers a different basis.

5) Sustainable leadership spring school: Lake District & London, April 2016

The Institute for Leadership and Sustainability (IFLAS) is running a Sustainable Leadership Spring School in April, with a week in the beautiful Lake District and a week in London. It will also host the first intake of a new MA in Sustainable Leadership Development. Lifeworth’s Professor Bendell has co-designed and will co-tutor these courses. Click here to learn more about it.

To subscribe to receive one email every 3 months, click here.

You can also engage with a community of over 300 professional at the leading edge of transformative work on business responsibility, sustainability, accountability and positive impact, by joining the Linked In group of the Institute for Leadership and Sustainability (IFLAS): http://www.linkedin.com/groups/Sustainable-Leaders-IFLAS-4778761/about

I thank Veronica, Frank, Janna and Mathew for having helped develop and maintain the portal at different times since 2001, and wish Christoph Stuck and his team at Globethics.net success in making this a more useful service for you.

Sincerely,

Jem Bendell

Founder, Lifeworth / Director, IFLAS / Senior Research Associate, Globethics.net

Do you think a spirit of adventure will help us to discover new ways of sustainable living and working? Maybe not. Do you want to explore this idea further? Good. Then consider joining me at the Royal Geographical Society in London on May 22^nd 2013. We are hosting a celebration of adventures in sustainability, with stories from explorer and broadcaster Paul Rose, environmental travel writer Kate Rawles, former Faithless band cofounder and 1 Giant Leap producer Jamie Catto, Wild Swimming author Daniel Start, sustainability communications guru Ed Gillespie, and myself, Professor of Sustainability Leadership Jem Bendell, amongst other eco-adventurous guests. The event introduces the new Institute for Leadership and Sustainability (IFLAS) at the University of Cumbria. www.cumbria.ac.uk/iflas

The event is mostly by invitation only, but some tickets will be on sale from March (email martin.pyrah@cumbria.ac.uk to register your request for an invite). Currently we are looking for sponsors to help make this event accessible to a wider range of people and for a film we are making on the topic and event. If your organisation could sponsor this, and thereby invite your friends and business partners, please get in touch with me directly (jb-@-lifeworth.com). More information on the speakers follows below.

The speakers:

Paul Rose is one of the world’s most experienced divers and polar experts, a regular presenter of BBC programmes on exploration, and Vice President of the Royal Geographical Society. For the past 30 years he has been helping scientists unlock global mysteries in the most remote and challenging regions of the planet. His new BBC documentary, Frank Wild: Antarctica’s Forgotten Hero, has just aired on BBC ONE and BBC TWO. Paul is now using art to bring attention to sustainability challenges. www.paulrose.org

Jamie Catto is a former and founding member of the band Faithless. He left to form the double-Grammy nominated, global music and film project 1 Giant Leap. He blended sounds, images and ideas recorded across 5 continents, to explore the unity in diversity. Jamie also leads uniquely transformative workshops, which draw from the diverse wisdom, techniques and processes he encountered during his musical and philosophical voyages. www.jamiecatto.com

Ed Gillespie is Co-Founder of Futerra Sustainability Communications and a flight-free round the world traveller. In 2007-8 Ed circumnavigated the globe without flying in a slow, low-carbon travel adventure using trains, buses, cargo ships and the occasional belligerent camel. He works internationally on ‘selling the sizzle’ of sustainability, inspiring change through powerful, compelling visions of a positive future. www.futerra.co.uk

Kate Rawles is senior lecturer in Outdoor Studies at the University of Cumbria, environmental campaigner and outdoor philosopher.  She is author of The Carbon Cycle; crossing the Great Divide, chronicling her ride through the Rocky Mountains. Kate cycled 4553 miles from Texas to Alaska along the spine of the Rockies, exploring attitudes to climate change and searching for solutions in the belly of the oil beast.  Kate finds that crossing the great divide from here to sustainability is an adventure we’re all on, however unchosen. http://www.tworavenspress.com/TRP_The_Carbon_Cycle.html

Daniel Start is a writer, facilitator and consultant specialising in environment, community and economic development. He is the author of a series of cult classic books on ‘wild swimming’ in the outdoors.  What could be more refreshing than slipping into the cool, clear waters of a secret lake? And what could be more exciting than plunging into a hidden waterfall? Daniel shows that adventures can be found not so far from home. http://www.wildswimming.co.uk/

Jem Bendell is a Professor of Sustainability Leadership and founding Director of the Institute for Leadership and Sustainability (IFLAS) at the University of Cumbria. In 2012 the World Economic Forum recognised him as a Young Global Leader for his pioneering work on innovative collaborations for sustainable development. His work has taken him to live and work in 8 countries on 5 continents. Alongside his academic career, Professor Bendell has worked for the United Nations and the World Wide Fund for Nature. His next book is called Healing Capitalism. http://www.jembendell.com

Lifeworth is delighted to be helping IFLAS to produce and promote this event.

Jem Bendell, Founder of Lifeworth and IFLAS (January 9th, 2013)

To us, sustainability means that everyone thrives in harmony with the biosphere and future generations. That does not mean maintaining or spreading a particular way of life, but a transition from behaviours and systems that are destructive, towards those that restore the environment and support individual rights, wellbeing, and community. It implies a systemic shift; large numbers of persons and organisations acting in a significantly different way. A transition to sustainability involves promoting ecological integrity, collective wellbeing, real democracy, human rights, support for diversity, economic fairness, community resilience, a culture of compassion, inquiry, non-violence to all life and appreciation of beauty.

Studies of positive transformations suggest this shift will require interacting cultural, economic, technological, behavioural, political and institutional developments at multiple levels. Leaders during social transformations appear to have transcended a concern for self, yet sufficiently sustained their wellbeing, and empowered others. Therefore our work seeks to connect the systemic and the personal, and mobilise insights from diverse schools of thought on how transformations occur. We see the transition to a sustainable way of life as an adventure, which I explained on film is a theme that frames much of our work.

Research at IFLAS will focus on actionable knowledge, action research, combining diverse disciplines, linking local with global, and learning from old and new teachings that arise from diverse cultural settings. I describe the research areas in a brief video. I am currently welcoming inquiries about potential PhD research. There is one opportunity for receiving a bursary to cover fees.

Our education will draw on our heritage as a place of experiential learning for over a century. We currently run an MBA in Leadership and Sustainability.

A sustainability leaders’ summit in July will mark the official launch of IFLAS, but the first open event is on March 11th, where we will train people on how to launch and scale a local currency. Our website goes live at the end of January.

So what am I letting go?

In the coming months, the Lifeworth jobs portal will be merged with Globethics.net who will be able to develop it further and reach a wider audience. Projects at Lifeworth Consulting will now be managed by my brilliant and steadfast colleague Ian Doyle.

As the year comes to an end, try letting go.

Unless you work in a circus.

Or especially if you work in a circus?

Cheers, Jem
Professor Jem Bendell
Director, Institute for Leadership and Sustainability (IFLAS)
University of Cumbria, UK
Charlotte Mason Building
Rydal Road, Ambleside
LA22 9BB, UK

http://www.cumbria.ac.uk/iflas / http://www.jembendell.com / http://twitter.com/jembendell / http://weibo.com/jembendell

Click here to view the embedded video.

I had the pleasure of working with Thomas and the European Sustainability Academy to develop a network of professionals in Greece who organise alternative exchange systems, such as the local market currency in Volos, called the TEM. We facilitated the drafting of the Drapanos Declaration on Community Exchange, which provides a basis for future collaboration. It highlights the insight and purpose that many people share. I recommend you read it, share it, and consider endorsing it yourself.

Thomas then came to the north west of England, to speak at events organised by the Institute for Leadership and Sustainability (IFLAS), which I’m founding at the University of Cumbria. We organised the events with Transition Lancaster, the local chapter of the worldwide Transition Towns movement, which encourages local action to create sustainable communities. As a result of the events, IFLAS is now engaging Transition Lancaster and the Lancaster Ethical Small Traders Association, other interested business networks and community groups in the region, and the nation-wide Sustainable Money Working Group, to design experiments and action-research projects for scaling up alternative means of exchange. We hope to link this local innovation with the Working Group on the Sharing Economy, of the Young Global Leaders of the World Economic Forum, because we believe these issues are of global relevance.

The next event is a one day seminar on why and how to launch your own local exchange system, led by myself and John Rogers, co-author of People Money: the promise of regional currencies, and in association with the United Nations Non-Governmental Liaison Service, on March 11^th, 2013.

The Institute for Leadership and Sustainability (IFLAS) will be formally launched next year, with a 3 day summit of international sustainability leaders. Based in the middle of the world-famous Lake District, the ILS is an autonomous part of the University of Cumbria Business School, collaborating across the University on inter-disciplinary research, education and advisory. We work on personal and collective transitions towards more fair and sustainable societies. The field of alternative exchange systems and complementary currencies is an area which we welcome enquiries, particularly from potential doctoral candidates, partners in funded research, or prospective participants in our March seminar. For this, I can be contacted via my profile page at the University.

Professor Jem Bendell

Director, Institute for Leadership and Sustainability, University of Cumbria

Founder, Lifeworth.com and Lifeworth Consulting

Just over five years ago I began working on the luxury industry.  I thought, why cant these elite brands not excel in social and environmental performance? I researched, wrote and produced the report Deeper Luxury for WWF-UK, and it triggered a bit of a furore in the fashion press and wider luxury industry (about 8000 sites now link to the report). 5 years on, I’ve helped some luxury companies with their social and environmental impacts. But I havent seen much change. Some large firms like PPR have embraced the agenda, although we wait in anticipation for more results, in terms of positive social and environmental outcomes. In the 5 years, what inspired me the most were the entrepreneurs I met. People who were creating businesses to address social and environmental problems, and targetting the luxury segment as a way to do that. I began to realise something might be in this – that these entrepreneurs might be shaping the future of luxury, and that they might be revealing a new way we can engage in social change. In the new study, I profile sustainable luxury firms Elvis and Kresse, Tesla Motors, Shokay, Source4Style, Rags2Riches, Positive Luxury, Timothy Han and Nue Luxe… It’s called “Elegant Disruption: How luxury and society can shape each-other for good”. It took about a year to write, as it involved a lot of conversations to understand just what the potential of luxury might be to influence social change. Ill be presenting it at conferences in Brisbane and Barcelona in the coming weeks.

Abstract, August 2012:

From http://www.griffith.edu.au/business-government/asia-pacific-centre-for-sustainable-enterprise/publications/working-paper-series/issue-9
This paper outlines the contemporary luxury sector, showing it is global, thriving and influential. It shows how creative destruction is typical in most industry sectors, including luxury, and how disruptive innovation by entrepreneurs is key to that process. It proposes that the current time is potentially disruptive for incumbent luxury brands and groups, due to five key trends that are beginning to re-frame the markets that luxury brands sell to. Sustainable luxury entrepreneurs from USA, UK, Philippines, India, Argentina, China and Hong Kong are profiled and described as  pursuing “elegant disruption”: a well-designed intervention in markets that both uses and affects aspirations in ways that change patterns of consumption, production or exchange, for a positive societal outcome. The paper reviews the response of mainstream luxury brands to the sustainability agenda, proposing some possible reasons why they appear to be encumbered in embracing this agenda fully. Some of the paradoxes in the notion of “sustainable luxury” are described, in order to draw implications for both the luxury industry and people interested in positive social change. The paper draws upon the authors five years of interaction with the luxury industry on sustainability issues, and is therefore written as a “first person inquiry” and draws upon principles of “appreciative inquiry” in documenting the breakthrough approaches of some sustainable luxury entrepreneurs.

In the First Policy Brief of the EU’s ‘SPREAD Sustainable Lifestyles’ project, they identified five pivotal issues for sustainable lifestyles. One of these is “the emergence of non-monetary systems: reward schemes, alternative currencies and the principle of reciprocity to incentivize people to rethink the value of services and goods in terms of their actual costs and benefits.” It recommends “a Toolbox for change makers” to “enable the transition” that should include “alternative currencies and reward schemes..”*

There is a growing sense that we are on the cusp of disruptive innovation in sustainable exchange, as EU SPREAD notes, “web and mobile technologies can play a critical role in building large-scale, sharing communities for the future.”* Data from the NGO I advise, Community Forge, show a significant uptake in the last 2 years, with now 400 currencies using its free open source software and 130 fully hosted on its servers.

If you are interested in these areas, then I recommend attending one of the following events in the coming months:

Sweden, 24^th August: a short workshop on community currencies with myself and Matthew Slater. Contact the organisers of Future Perfect for more information.

Greece, 10^th and 11^th October: a 2 day workshop on community currencies with best selling author and expert Thomas Greco, myself, Matthew Slater and innovators of local currencies in Greece. Contact the organisers of the European Sustainability Academy for more information.

UK, 30^th and 31^th  October: a talk and then half day workshop on community currencies with Thomas Greco, at the Lancaster Campus of the University of Cumbria. Contact the organisers at Transition City Lancaster for more information (email:  th@  reliablegreenweb.co.uk)

Later this year, at the University of Cumbria, I will be launching a trans-disciplinary programme of research, dialogue and training on alternative currencies and exchange systems, and how they might enable a sustainability transition. If you are interested in this agenda, Id be pleased to hear from you (jb at lifeworth . com).You can also follow tweets on this topic via https://twitter.com/jembendell

Thanks,

Jem Bendell

Director, Lifeworth

Professor of Sustainability Leadership, University of Cumbria (Incoming, Oct 2012)

* Quotes from: Emerging Visions for Future Sustainable Lifestyles. Preliminary policy considerations from the SPREAD Sustainable Lifestyles 2050 European Social Platform project. Developing pathways to more sustainable living. First Policy Brief, February 2012

Click here to view the embedded video.

• “Don’t worry, they won’t fail you, you’ve already paid”, from a student to another caught cheating during exams;
• “We’ve already accepted that we need to compromise our values to work in the business world”, from a business ethics student to his professor;
• “The business ethics course goes against the grain of every other course that is taught as part of the programme”, from a student to a programme director.

If statements like these are indicative of the culture in business schools today, can we seriously expect management education to be the source of globally responsible leaders to address the urgent needs of our times?

Creating globally responsible leaders is one of the three pillars of a new vision for management education developed by the 50+20 project, a collaborative effort between the Globally Responsible Leadership Initiative (GRLI), the World Business School Council for Sustainable Business (WBSCSB) and the United Nations Principles for Responsible Management Education (UNPRME). Launched in June at the Rio+20 summit, the 50+20 project presented a report, which proposed a cognitive re-framing of management education, so rather than being the best in the world, business education becomes a driving social force for the world.

Anders Aspling presents 50+20 report on panel with Lifeworth’s Ian Doyle at Global Ethics Forum 2012.

The vision was also outlined at the Global Ethics Forum at the end of June where I (Ian Doyle), joined a panel with Mr Anders Aspling, Secretary General of the GRLI, to discuss how such a vision to create more purposeful business education could be implemented. I suggested the following building blocks for holistic business education:

• A clear social purpose: What is a business school for? Its time to be clear and, if necessary, to update missions. The Community Individual Development Association (CIDA) University in Johannesburg is a good example. It aims to provide education in business administration for the rural poor with a view to transforming its students into leaders of their communities in turn advancing socio-economic transformation of the country and the broader region.
• Pedagogic innovation. Schools need to work more on the pedagogic competence of their staff. This includes how staff can transmit the desire to want to discover/learn rather than assuming ‘he who knows can teach.’
• Combine theory with action-oriented research. If schools are going to have a social purpose, they will need to adapt course content so that research is centred on resolving social problems. That way, students can put theory into action and challenge it if necessary. Furthermore, this is a fun way to learn!
• Adapt management systems. Action research means that schools will need to create platforms to exchange with stakeholders on social issues. The 50+20 report calls this platform a “collaboratory.” Not only would such a platform be useful for research purposes, but it could transform the role of academics so that they become public intellectuals. To do so will also require that schools provide incentives for faculty to engage in such a process: and to be honest about shortcomings.

In the same vein, a sense of purpose requires that one measures success differently. One way to do this is to evaluate what extent research output produces results that can be used to resolve pressing issues in business and society.

• Collaborate for Systemic Change. On a systemic level, what could be some practical recommendations for action and next steps in business education to help create scale? Firstly, there needs to be a cognitive reframing of the purpose of business. Secondly, business school ranking systems currently have graduate salary as a measure of the school’s reputation. Ranking systems could be adapted to measure the social utility of projects and careers, rather than equating success with monetary worth. This will require the co-operation of business school leaders in lobbying for change to ratings systems. Thirdly, school heads would do well to reflect on the future needs of society in 5-10 years and plan for them, as government regulators and funders will no doubt follow these trends, not to mention employers. Fourthly, challenge the ‘Publish or Perish’ mentality in view of career advancement, which encourages the siloing of academics. Issues such as climate change demonstrate that the world is ill-equipped to deal with such systemic issues. Schools need to encourage interdisciplinary work and applied research so that academics are rewarded for the social relevance of their work.

Previously at Lifeworth, in a study in the Journal of Corporate Citizenship, we whittled these issues down into a 16 step process that business schools could follow to embed social purpose into all their activities.

But what might be the guiding values to implement these building blocks? I’d like to propose the following values:

Humility – an issue-centric learning focus requires a spirit of communication. This necessitates humility, not power, as people are humbled before the problem they face so that they can think together.

Love – because love tells us what is important and ultimately guides our happiness. Gary Hamel, considered the world’s leading thinker on business strategy and visiting professor of strategy and international management at London Business School, says that the word ‘love’ needs to be reintroduced into the workplace. I’d go a step further and say that the verb ‘to love’ needs to be lived out in the workplace.

Faith – to believe that there can be something other than it is, for example, the world can be a better place. If students have resolved that they need to compromise their values for the work environment then this is a sign that they have lost faith and our world then becomes stuck in a rut. People need faith so that they can be moved to action.

Accountability – the word ‘responsibility’ has been hijacked so that it only has voluntary significance but its original meaning implies a sense of obligation. It is more than just an ability to respond, and thus a choice, but a commitment to responding and a willingness to be accountable for it. Thus promoting systems for ones own accountability is the highest form of responsibility.

The 50+20 vision is timely, as it highlights that ‘responsibility’ is not something that can be instructed but can be inspired and is something that needs to be lived out. This insight is one of the key aspects of a new training course developed by Lifeworth for Globethics.net. Called ‘Voicing Your Values’, the training draws on psychological studies, executives’ personal experience, case studies, peer coaching, role play and film, so that participants:

• are empowered to create the contexts that enable ethical action.

• clarify their personal and professional purpose and associated definitions of success.

• develop a personal ethical action framework.

• can develop and deploy counter arguments to typical rationalisations for unethical behaviour.

• identify processes for working with others to create values-supportive organisational systems.

By integrating personal ethics in a professional context, managers are equipped to transform ethical reflection into ethical action.

The one day training, which also includes Training Of Trainers, so you can deploy this in your own organisation, is being offered in Geneva on 18^th October and 9^th November, and can also be offered in a location of your choice if you are able to host. A shorter version will be offered on October 11th in Crete. Please contact me at idoyle at lifeworth .com or on +33 9 52 00 53 60 if you are interested in this opportunity.

Ian Doyle,

Associate, Lifeworth.com

As a meeting place of leaders in business and government, the WEF seemed the ideal place to share ideas on how to tackle the jobs crisis. Many of the discussions highlighted small things that businesses can do, such as helping promote employability through funding career-relevant education, or investing in internet start-ups that provide new job opportunities. They also discussed how governments could invest more in infrastructure, education and look again at labour mobility. However, all these issues are secondary to the prime role of our banking system in determining levels of potential employment. As money is issued as debt, if the banks won’t lend to businesses in the real economy, particularly small and medium sized businesses who provide the majority of jobs in any society, then as debts are paid back, so the amount of currency in circulation shrinks. The first key function of a currency, any currency, is to help connect assets, including people’s time, with needs. If a currency becomes scarce in an economy, then there is less ability for exchange. That means needs go unmet, and assets go underutilised. It’s called unemployment.

This critical factor was mentioned at the WEF events in passing, for instance when a finance minister from a North African nation called for more regulations on the percentage of bank lending that must go to small and medium sized enterprises. However, I did not hear discussion of how governments around the world have previously addressed this problem, for instance in East Asia, where 5 year plans often included controls on bank lending, to guide lending to the real economy and job creation, rather than lending for consumer debt and speculative activities. Indeed, I heard from a senior official in Thailand’s planning ministry that credit controls had been dropped from the new 5 year plan. This indicates that the mainstream discourse on the job crisis needs to shift, and business leaders from the real economy, could play a role in that, given that job creation is a win-win for business and society.

For business leaders to play a role in addressing the challenge, the first step is to gain insight into the most significant levers of change, and escape untenable myths about the key causes of unemployment. Five myths I heard from delegates in Davos, Bangkok and Istanbul about the main causes of the jobs crisis, that business leaders need to escape from are:

Myth 1: “Unemployment is due to falling demand.”

Are people’s needs really falling? Or just the amount of money in circulation to employ people/assets to meet those needs? Clearly, given the levels of human need in the world today, its the latter.

Myth 2: “Unemployment is due to technology displacing human labour.”

Could we not design systems of ownership and revenue distribution so that the income from technology frees us to work creatively and caringly for each other? How can we govern technology to release us to a world of service, not a life of redundancy?

Myth 3: “Unemployment is due to the cost of hiring and firing.”

Why then do some countries with high wages and labour standards, like Scandinavia, have less % unemployment? Where would competition between nations to lower costs of hiring and firing lead us? What will competition between nations for the same number of jobs worldwide lead to the total global level of unemployed? Clearly the loosening of employment law is not a systemic solution.

Myth 4: “Unemployment is due to a lack of skills and appetite for the new types of work.”

The world has more skilled labour than ever before, and more labour mobility than ever before, and many people with Masters degrees can’t get a job. The internet means that people can access knowledge more easily than ever before. Education is important, and a lack of education may be a problem for specific groups, but is not a critical factor in mass unemployment at present.

Myth 5: “Unemployment is due to the option to claim benefits.”

Why then was the existence of benefits not keeping people out of the workforce before the recession? Why do some countries with the most supportive welfare states, like Scandinavia, have less % unemployment?

These myths arise from a general lack of understanding about the monetary system. Once we understand that the availability of a currency in an economy determines employment levels we must then look at the monetary system. Once we look at the monetary system we must question why governments have chosen to create a system where 97% of our money is created by private banks as debt with interest so that governments cant spend on public needs without taxing us to pay interest to banks. Rather than maintaining the myth that the financial markets are like the tides or the weather, its time to redesign these entirely man-made systems, to enable currencies to be in fair, stable, sufficient and targeted supply, for job creation. To tackle jobs crisis we need to:

1. wind down non-reserve banking and replace private bank credit creation with government issuance of money, according to strict rules enshrined in law, to avoid inflation. In this situation governments could create credit to lend at low rates to banks who would then lend it to businesses.
2. regulate bank lending and leverage to ensure a large share of lending goes into the real economy and not into consumer debt or speculation.
3. create complementary currencies or exchange systems for communities and businesses, some of which could be issued or backed by local governments.

In my video keynote at the Rebuild21 conference in Copenhagen last week I went into some detail on the monetary system and what we need to do about it, as responsible professionals working towards sustainable development. Then at the World Economic Forum in Istanbul, on video, I explained further how we need to work on monetary reform in order to solve the global jobs crisis.

Once these reforms and innovations occur then governments and companies in the real economy will be far better placed to invest in the necessary transition to a low carbon and resource efficient economy. As Ida Auken, the Environment Minister of Denmark explained at the WEF in Istanbul, there will be tens of millions of jobs created in the green economy of enterprises that deliver more efficient use of resources. Government needs to guide businesses in that transition, but if its only tools are bonds, even eurobonds, then that means very limited spending, higher taxes for future generations, and greater resources for global banking to invest in what it decides will deliver the highest returns. If anything is learned from the financial crisis is that the power of global banking is out of hand.

Folks, in the 5 years since the beginning of the credit crunch, it is now clear that not enough politicians or civil servants know what to do, or are willing to take leadership on the root causes of the financial crisis. In this situation, we need more statesmanship from business leaders from the real economy, to help shift the policy debate onto real solutions. In so doing, as business leaders you will be protecting your own businesses from the disruptive effects of recession. There is also a case for institutional investors to engage in this issue as well, as the long term interests of savers are being risked by the current monetary system.

To sum up: how can your company help create more jobs? By getting involved in monetary reform efforts, and alternative exchange systems, including business barter networks, and the fledgling self-issued credit systems that people like my colleagues are working on. It might be easier to parrot the myths I mentioned above, but it wouldn’t be responsible, or effective.

Professor Jem Bendell

Founder, Lifeworth Consulting, Young Global Leader, World Economic Forum.

June 10th, 2012.

These developments in “collaborative consumption” bring a new dimension to the existing forms of alternative exchange systems, such as business barter networks or countertrade agreements, and community currency systems that help connect underused assets with unmet needs. Countertrade accounts for around 20% of world trade, while one national barter network now involves 1 in 5 small or medium sized companies in Switzerland, amounting to over US$1.5 billion a year. The new sphere of peer-to-peer financial-lending has taken off, and predicted to reach US$5 billion next year. It appears to be a time of disruptive innovation through new forms of sharing, exchanging, renting and co-owning.

Some of these activities are important to sustainable development, and, therefore, to the broad field of responsible enterprise (whether we label our work corporate social responsibility, sustainable business, social enterprise, shared value, responsible or impact investment, or some other term). For business executives to contribute to a positive sustainability outcome from these developments requires enhanced understanding of how to explore ways to become involved, including by adapting their own business models.

Which means there is an educational need, for those of us interested in enabling the sustainability transition. Lifeworth Consulting is conducting research on these developments, for presentation in July at the EABIS colloquium at IMD (in Lausanne), and in September at the Necessary Transition conference at GBS (in Brisbane). So, if you are currently employed, and would like to receive the results of this research, please participate in our 5 minute survey, it would really help:

http://www.lifeworth.com/survey-responsible-enterprise-collaborative-consumption

Please, click that link!

Thanks, Jem Bendell

Lifeworth founder and Adjunct Professor @ GBS