The case of HSBC’s Climate Partnership Programme · The case of HSBC’s Climate Partnership...
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Talent management and effect of sustainability training
The case of HSBC’s Climate Partnership Programme
Maria Laura Franco-Garcia Senior research in environmental policy, CSTM Twente Centre of Studies in Technology and Sustainable Development at the University of Twente, The Netherlands. Former director of academic department and master's programme of sustainable development sciences in Tec de Monterrey, Mexico. PhD obtained in France on Environmental Sciences and Environmental Engineer from Mexico City. University of Twente Postbus 217; 7500 AE; Enschede, Netherland Tel : +31.53.4893203; Fax : +31.53.4894850; Email: [email protected] http://www.utwente.nl/cstm/ Matthew Gitsham Director of ACBAS, the Ashridge Centre for Business and Sustainability. Lecturer on Ashridge programmes (MBA and MSc in Sustainability) and Programme Director for the Integrating Corporate Responsibility programme. Elected member of the academic board of the European Academy of Business and Society. Member of the stakeholder advisory panel of Nexen, the Canadian Energy company. Frequent contributor to industry and academic conferences. Ashridge Berkhamsted Hertfordshire HP4 1NS United Kingdom [email protected] Tel. +44 1442843491 Fax. +44 1442841209 www.ashridge.org.uk Carla C.J.M. Millar Professor of International Marketing & Management at the School of Management & Governance of the University of Twente, and a Fellow of Ashridge Business School in the UK. Previously, she was Dean of TSM Business School and professor at the University of Groningen, and spent 10 years with major MNC's, followed by >15 years at the University of Greenwich and City University Business School, London, UK. Her research and consultancy interests are in culture and values, business ethics, tacit knowledge transfer, the HE sector, branding and reputation, governance, international business. Her publications include the Journal of Management Studies, British Journal of Management, Journal of Business Ethics, Management International Review, Journal of Knowledge Management, IJTM and the Journal of Public Affairs.. University of Twente School of Management and Governance PO Box 217 7500AE Enschede, The Netherlands e-mail: [email protected] and Ashridge Business School, ACBAS Berkhamsted, Herts HP4 1NS, UK e-mail: [email protected]
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Talent management and effect of sustainability training
The case of HSBC’s Climate Partnership Programme
Abstract:
The objective of this paper is to link ‘talent development ’ with ‘sustainability’, and to do
this we have analysed empirically the unique dataset of 2608 learning evaluations of
HSBC’s global Climate Partnership programme (HCP). Europe was represented by 685
respondents and was our baseline for comparing the impact of the HCP with that for the
Global results. The HCP is part of HSBC’s business strategy aimed at embedding
sustainability and social responsibility across the corporation. Our quantitative data
analysis shows a positive impact of the sustainability training in terms of participants’
further commitment to the organisation and the development of leadership skills. We
developed our ‘Management sustainability training model’, and used Dunphy’s model
of Organisational change for corporate sustainability, ranking the HCP in phase 5
because of its effect on the development of talented people with a long‐term vision and
improvement in well being at work as well as with the communities involved. The link
between “talent development” and “corporate sustainability” provided a number of
important lessons, e.g. training programmes addressing societal problems in a project
applied approach enhance the employee’s commitment to the organisation, in particular,
if employees’ develop their leadership skills and count with managerial support for
application of knowledge post‐training.
Keywords: sustainability; talent development; social responsibility; Europe.
Bibliographical notes: are on the previous page
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Talent management and effect of sustainability training The case of HSBC’s Climate Partnership Programme
1.Introduction
In the literature review, much research has been carried out in the area of talent
management. Currently however, it seems clear that some people give sustainability
training a special place in the development of talent, as much as saying that if one does
not acquire the ‚sustainability “bug” then one is not really ʺtalentʺ, and that training is a
way to acquire it. Unfortunately, at this particular regard, there is few evidence in
literature looking at the organisational effects of holding training programmes on
sustainability. Therefore the purpose of this paper was to explain the linkages between
talent management and sustainability training programmes by using the HSBC’s
training on Climate Partnership (HCP) programme.
Due to the growing need for human capital with the knowledge, abilities and behaviour
to lead the type of organisational change that answers the needs posed by the corporate
sustainability and corporate social responsibility principles, training in sustainability is a
‘must’ for future talent. This was also argued by Waddock (2007) based on her analysis
of the different corporate initiatives proposed or undertaken to face the social and
environment issues of sustainability inside business. She also stressed that market
pressure is driving the incorporation of sustainability in business strategy and that it is
foreseen that sustainability will take an even more crucial role in the future
The process and impact of developing talent were our ʺdrivingʺ issues and a
contribution of this paper is identifying indicators and components that are important in
the implementation of the training / coaching programme . These indicators are relevant
for talent investment, namely on what, how and where to invest in talent, especially at a
time when the economic crisis pushes managers to make short term decisions and for
some organisations talent development is put on the back burner.
However, the development of talent related to sustainability always pays back in the
long run (Lacy et al., 2009) , e.g. Hewlett‐ Packard has saved $25 million annually by
introducing energy saving programmes, through training and information.
Therefore, from an investment point of view, ʺsustainable talent developmentʺ needs a
clear set of criteria, indicators in order to be assessed. We identified some variables
which can be used as the set of criteria and put them together (section 4) in our model of
“management sustainability training model”.
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The research question driving the elaboration of this paper was : What are the linkages
between talent management and training/learning programmes about sustainability
within organisations such as HSBC ?
Being HSBC our case study for this paper, we described in the following section the
programme “HSBC’s global Climate Partnership” (HCP) programme.
2. HSBC’s HCP programme as case study
The “green” reputation of HSBC has given it a haul of awards as well as much
recognition for their environmental and social achievements. Among them in 2009,
HSBC received the following recognitions: Number 1 financial institution for climate
strategy and carbon data disclosure and the British business awards 2009.
HSBC is a corporation headquartered in London, United Kingdom. They have 8000
offices across 88 countries and territories in Europe, The Asian‐Pacific region, North
America, Latin America and Middle East. They serve around 100 million individuals
and business consumers around the world. HSBC has used throughout its history
several policies and programmes for embedding social responsibility issues in the
corporation. They adopted the Equator principles in 2004 and each year HSBC issues
their sustainability report in which social and environmental indicators are collected to
show achievements to the shareholders and stakeholders groups.
As corporation, they have some 300,000 employees worldwide and according to Group
chairman, Stephen Green, “the institutional aim is to reward employees appropriately in
order to meet the long‐term goals of the business and in particular create an
environment where financial reward is not the only motivating factor” (Stephen Green,
2010). He also pointed out that one way to do it is through employees engaging in the
HSBC Climate Partnership (HCP) programme. The HCP programme forms part of a
corporate strategy to embed climate change and sustainability inside the HSBC
Corporation. Their report emphasizes their Corporate sustainability activities, and we
notice that in practice the concepts of Corporate sustainability and corporate social
responsibility are often used interchangeably (Waddock and Bodwell, 2007).
The HCP programme is executed through collaboration between HSBC, the Earthwatch
Institute, the Climate Group (international NGO), the Smithsonian Tropical Research
Institute and the World Wildlife Fund (WWF). The HCP was conceptually designed and
implemented to have an impact on the awareness level of HSBC employees towards
sustainability but also to enhance the talent development aspects which were the main
focus of our research. The HCP programme involved nearly 1000 HSBC employees and
has 3 learning formats: the Climate Change programme, 12 days with field work in a
remote area with only HSBC employees; the Local Volunteering Project (LVP), a 1 day
course in a regular location with mixed population of HSBC employees and
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volunteering local participants; and The Online Programme, an any time, self‐
instruction programme using virtual educational systems and interaction platforms to
receive feedback.
In the particular case of the Climate Champion (CC) project, in 2009 484 HSBC
employees were trained as Climate Champions at 5 Regional Climate Centres in 40
countries. CC participants consider field work a way to put their knowledge into
practice through being involved in projects.
In their 2009 Sustainability report Sandy Flockhart stated: “77 per cent of HSBC’s people
feel actively encouraged to take part in employee volunteering initiatives, and those
who do are more engaged with HSBC” (HSBC, 2009). This evidence on perception inside
HSBC about the HCP programme was one of our reasons to link “talent management”
and “corporate sustainability” in our study.
While the programme was global in scope, the data available on Europe is most
complete and reliableReflecting the objectives set for the training and the availability of
data, our hypotheses are as follows:
Hypothesis 1: The HCP programme is an effective tool to link talent development
(leadership and influencing skills), organisational support and organisational
commitment with corporate sustainability in the European context.
Hypothesis 2: HCP managers’ stakeholders see an improvement in leadership skills in
the area of sustainability as an advantage in the labour market.
Hypothesis 3: HCP participants’ perceptions can be used to rank organisations in terms
of corporate sustainability by using the “Human Sustainability” indicators of Dunphy’s
model.
Our hypotheses were tested and confirmed through a statistical analysis of the empirical
data. Our model to address hypotheses 1 and 2 is described in the methodology section.
HCP participants’ and stakeholders’ perceptions were gathered by means of surveys.
The surveys were part of the instruments used during the training evaluation report
carried out by Malnick and Gitsham (2010). We focused our analyses on Europe, but in
the Findings section, we also covered the global perceptions.
3. Theoretical Framework
Our research interest was to embrace “talent” and “corporate sustainability and social
responsibility”, and for this we used Chowdhury’s (2002) definition, i.e. “talented
individuals are those being considered the spirits of an enterprise, being creative, rule
breakers and change initiators”. Four years later, Gitsham et al (2006) defined the
concept of leadership in their report of the “Developing the Global Leader of Tomorrow
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project” which shows important similarities with Chowdhury’s concept. Gitsham et al
took the (United Nations Global Compact Principles for Responsible Management
Education (PRME) as a reference to frame their own concept of leadership, which is:
“leadership requires a range of discrete skills with the ability to be flexible and
responsive to change, the ability to find creative, innovative and original ways of solving
problems, the ability to balance shorter and longer term considerations”. The
characteristics shared between Chowdhury and Gitsham on – on the one hand – the
important business values as talent and leadership skills, and – on the other hand ‐ the
flexibility of the “talent” criteria to be adapted to the particular situation drove us to the
conclusion that in the context of “corporate sustainability and social responsibility”,
leadership skills can be considered as part of the abilities needed to develop talented
people in the HCP case.
As one of the components of the leadership skills‐set, it has been documented that for
the organisational change implicit in the initiatives of corporate sustainability and social
responsibility, leaders require to have outstanding influencing skills (Angus‐Leppan et
al., 2010). This is because they have the mission to embed sustainability principles
through the organisation (corporation) in different directions: vertical (upper and lower
positions); across organisational departments; at local or international scale; etcetera.
They have to deal in different stages with diversity of mindsets and remain assertive
and flexible to turn their colleagues perceptions ‘on message’ towards the sustainability
agenda.
Developing talented people to meet expectations about organisational change derived
from corporate sustainability initiatives calls for substantial investments from both sides,
employees and employers. Businesses have been investing in developing knowledge,
skills and attitudes (Lacy et al, 2009) through training and/or coaching programmes. This
has been explored widely within corporations (Waddock and Bodwell, 2007). Impact
evaluation of training to enhance talent and embed corporate sustainability has its
measures in different organisational criteria, like commitment and engagement
(Dunphy, 2003)
An increase in organisational commitment was introduced as one of the sustainability
programme’s intended impacts, in accordance with Dunphy (2003) whose explanation
was that the ethical component in the sustainability programmes raised the participants’
perceptions about their professional relationships within the organisation. Trevino et al
. (2000) showed this effect in a broader scenario and related it to ethical leadership; he
stated that people acting with ethical principles increased their reputation inside the
organisation, which improves to some extent the inter‐relationship and impact of the
employee commitment to the business. Moreover, Howard (2010) argued in his research
that “leaders who align personal purpose with organisational mission and societal need
can have a positive impact on the world and foster a new global ethics”. Therefore, we
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take it as our assumption that both elements, the ethical content of the sustainability
programme and leaders pursuing and implementing ethical goals, can positively
influence the organisational commitment level.
D’Amato and Herzfeldt (2007) researched the influence of learning programmes and
organisational commitment on talent retention. They gathered empirical data by means
of a survey which was responded to across different generations of European managers.
They have shown that age can be an important factor when comparing organisational
commitment and talent retention because they found a lower commitment level within
the younger groups. Nevertheless that effect can be diminished if the young group has
access to individual development programmes. Hence, in the European context,
organisational commitment can be increased by facilitating individual development.
The main influential concepts in the connection between “talent management” and
“corporate sustainability” were researched individually in the literature and described
in next sub‐sections.
Corporate Sustainability and Corporate Social Responsibility
Due to the emerging issues in both corporate sustainability and CSR, interpretations
tend to be different. Therefore we have attempted to include the most common
definitions according to recognized sources. “Sustainable development seeks to draw
attention to ways of meeting needs of people without compromising the ability of future
generations to meet their own needs” (Burdtland, 1980). Corporate Sustainability has a
direct link to the business which promotes and embraces the “sustainability” aspects
inside the companies. When talking about “Corporate Social Responsibility”, the wider
impacts that companies have in society (Gitsham, 2008) are covered. Other terms used in
this context are “Corporate governance”, “corporate citizenship”, “Business ethics”,
“corporate accountability”, but all of these include social and environmental aspects to a
greater or lesser extent.
Corporate sustainability and corporate social responsibility initiatives increasingly call
for human capital with the knowledge, abilities and behaviour to lead organisational
change and this highlights the need for research on the links amongst talent
development, leadership skills and organisational commitment as these impact on
corporate sustainability initiatives. Most corporations use training/coaching
programmes to cope with the demand for “talented” human capital. As said before,
hence we try to provide a relevant framework to link training / coaching programmes
with talent development; in particular for training on sustainability.
Sandra Waddock’s (2008) defined “Corporate Responsibility” as “the ways in which
companies’ vision, values, and business models (ways of adding value) affect societies,
stakeholders, and the natural environment” and “corporate social responsibility” as the
ways in which companies act to explicitly benefit society.
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In the broader definition of corporate citizenship/responsibility many large corporations
have begun implementing significant programmes. Some of these initiatives are still tied
to narrowly defined criteria of corporate social responsibility (CSR). However there are
other companies which initiatives are aligned beyond (Waddock, 2008) CSR because
they engage in managing their corporate (citizenship) responsibilities, i.e. including
stakeholder management, governance and ecological responsibilities’. This view is
supported by De Bruijn and Tukker (2002).
Why reporting sustainability issues or CSR?
The power of reporting and its tendencies in business are of growing corporate concern.
From the 1990’s (KPMG, 2005) corporations took on wider societal responsibilities. A
positive trend of the number of firms reporting on corporate sustainability was recorded
in 2005 with more than the half of the top 250 Fortune 500 companies, and 33% of the
top 100 companies in 16 countries having issued such reports (Waddock, 2008).
In the case of CSR, almost 3000 of the best known corporate brands have signed the UN
Global Compact (Berger et al., 2007). Furthermore, the number of companies using
reports in accordance with the global reporting initiative guidelines increased from
merely 20 in 1999 to over 1000 companies in 2006 (Nijhof, 2008). This evidence confirms
how relevant it is for businesses to disseminate their good practices in favour of
environmental and social aspects both inside and outside the business borders. Some
organisations want to make a real difference but there are also those whose main drivers
for reporting on sustainability activities are purely related to improving business
branding and reputation rather than authentic altruistic reasons.
The other relevant field to review in the literature is concept of talent management and
its components, some relevant works have been analysed in the following section.
Talent management
The subject of “Talent management” has been tackled from many different angles to
better understand the critical elements associated with the complex processes involved.
There are many definitions, and that by Blass (2007) refers to “additional processes or
opportunities that are made available to people in the organisation considered as
‘talent”.
The argument for talent management was put by Dunphy (2007) who saw it as a vital
element of business capital and as incorporating basic elements of: recruitment,
development and retention. In particular, retention has lately become very complex due
to the mobility potential of talented people. This, notwithstanding his argument that
when talented people have meaningful work, autonomy and are in professional
development, they do not want to leave their job. We see “meaningful” as, for many
people, encompassing an appreciation of the ethical corporate position of the company
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and its interaction with stakeholders. Bringing about such an appreciation is therefore a
critical element of talent management.
]Bhatnagar (2008) argued that for organisational purposes “talent development” and
“leadership development” have similar supportive arguments and both are seen as
mechanisms for talent management. Additionally, looking at the latest empirical
developments, he refers to mentoring/coaching and training as the most popular
activities to address talent development. Leadership development as a concept emerging
from this talent development description is further developed in this section.
Due to the use of similar terms for the processes involved in “talent development” and
“human resources development”, it is relevant to mention that they can be different in
approach, goal and content. Furthermore, since “talent” inside business has been seen
as an adaptable term in the organisation for which it was meant, the concept becomes an
internal definition process per se, which is framed for a specific business at a particular
point in time. Because of the relevance of the concept some researchers tried to introduce
a locality bound concept. This was Blass’ research purpose (Blass, 2007) when surveying
1500 managers in 2002 across the UK where the output focus was “talent”, and was
defined by this UK managers group in terms of capability for “more pressure”,
“enhancing development opportunities” and “better promotion”. The concept reflected
the circumstances as valid for managers interviewed in the UK at that particular time.
Leadership development
For the purpose of this study, leadership skills were considered part of a number of
“talent” components HCP participants were asked to give their views about. Hence we
need to define “leadership” and “leadership development” from the literature. Berger
and Berger (2004) in their book on talent management gave an unique definition of
leader, and associate the term ‘leader’ with various levels of leader development They
described three types of leader development: emerging leader, developing leader and
strategic leader and we focused in the latter two because of their connection with our
analysis. Berger and Berger described the developing leader as “he/she is a great thinker
but may not be adept at mobilizing others or addressing practical consequences”. The
way to enhance his/her leadership is by a coaching process with involvement only of the
executive group facilitating bonds within the higher organisational levels. Another
relevant category is the “strategic leader” who should learn to think in a strategic way in
order to improve senior‐level bench strength and to retain valued talent. The
development approach, also named as “coaching” should be focused on providing a
sounding board and be building specific skills.
Another approach for framing leadership development is the one explained by Hannum
and Martineau (2008) who identified three different stages of development in terms of
expectations: improvement in skills or changes in behaviour of individual leaders;
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improvement in the group or team effectiveness; and an enhanced ability to meet
organizational, community, system, government, or other broad goals. Each of these
expectations for the leaders requires specific coaching process. For our particular HCP
case, the ability to gain vision towards a broader goal suits the leader profile on
sustainability (Climate Change) projects.
Leadership development must be related to the improvement of leadership capability
and an improved organisational performance. Increasing leadership on the work floor
positively impacts (Alimo‐Metcalfe, 2001), the organisational situation.
Most companies do not find it easy to evaluate their leadership development’s impacts,
relationship and effectiveness, and commonly assess two or three categories of
subjective measures or behaviour indicators, e.g. allowing employees to give their own
perception about their change in behaviour. Hayward and Voller (2010) indicated that
few studies refer to theoretical models of evaluation. Instead, many studies focused on a
specific research approach, such as appreciative enquiry or a case study approach.
Next to a self identification as someone with leadership characteristics or in
development, it is important to measure the influencing ability mentioned by Berber
(2004) as someone being able to mobilize people and the more explicit leadership
definition which is an influence process, also related to Yukl (2001). Angus‐Leppan T. et
al (2010) added to this concept that when leadership is framed as a process of influence,
leadership become broader than management; this is because influence can come from
outside or inside the organization. This moves the concept from leadership to
relationships (Baker 2001) and some other authors define leadership as a dynamic
collaboration. This definition gives the concept in a more social meaning. Angus‐Leppan
and others discussed (2010) leadership in the CSR context and cited theoretical concepts
of Waldman and Siegel (2008) without empirical analysis; they assumed that the
personal values of a CSR leader are indicative of ethical and moral leadership styles. As
a consequence Angus‐Leppan framed and analysed the ethical and moral leadership
models for CSR context focused in the personal ethics of the denominated leader while
other researchers (Crossan and Hulland, 2002) have proposed that the new key
responsibility of leadership must help the organization stay aware of and adapt to the
rapid changes in its industry and answer to new stakeholder demands. At the end of
Augus‐Leppan narrative it was clear that there was a lack of research around CSR and
leadership, and that such lack of evidence to some extent also exists between corporate
sustainability and leadership.
As a consequence our research model will use some of the parameters described as self‐
perception of leadership, the influencing process and stakeholder’s involvement to
identify how a training programme with a high ethical content can increase leadership
skills as well as organizational commitment in participants. Furthermore we will relate
personal development and talent development where ethical values and leadership are
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part of the programme; finally, our model will cover the implementation of
sustainability in corporations, through using Dunphy’s Model which is described next.
Dunphy’s model as theoretical framework
Dunphy’s model (2003) consists of two lists of criteria divided on the basis of ecological
and human indicators. Based on such criteria, organizations can be ranked from 1 to 6,
using phases of development. The “Rejection” Phase forms the first phase, and is
followed by the “Non‐responsiveness” phase. The third is the Compliance phase, and
Phase 4 is called Efficiency. Phase 5 is called “Strategic Proactivity” and the highest
phase (number 6) has the title “The sustaining Corporation”. This model has been used
to assess corporate sustainability policies and can allow further comparisons and
developments among organizations. In some cases, the model has to be adapted to the
particular needs and expectations of managers.
As previously mentioned there are two general criteria in this model: Ecological and
Human sustainability. We used the latter as our framework of analysis in terms of
management of the social performance, in the perception of HCP participants and
stakeholders. Those form the headings to follow and to be translated according to the
particular conditions of the organization. In our Findings and Discussion section we will
use Dunphy’s model to anchor and measure aspects related to organizational
commitment and engagement with the corporation, and personal satisfaction with the
ethical orientation of the organisation – in the perception of the HCP groups. We will
also elaborate on Dunphy’s characteristics for phases 5 and 6 related to our findings.
Bhatnagar’s (2008) model has some similarities with Dunphy’s. Bhatnagar used some of
the terms used by Dunphy but also added more emotional components like
“deployment of their engagement in “head and heart”, and “connecting with the people
who will help them to achieve their objectives”.
4. Methodology
Research design
As previously outlined, the aim of this study is to examine the link between “talent
development” and sustainability awareness/education programmes – in this case
through evaluating the effect of the HCP programme. We focused on the HCP
programme, as we had access to the data, and hence this provided an opportunity to test
the relationship quantitatively, next to carrying out literature research.
We looked at the HCP programme by first examining the analysis of the quantitative
research instruments (surveys) used to evaluate the training effects from the HCP
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programme (Malnick and Gitsham, 2010) and the theoretical framework used in Malnick
and Gitsham’s report, i.e.: Dunphy’s Ecology Sustainability Criteria.
We carried out a further literature survey on theories and models interconnecting the
variables in the HCP surveys with our object of study in terms of the “linkage” between
“talent development” and the effect of programmes on sustainability.
We then decided to use Dunphy’s Human Development criteria set as a further research
framework for our study. The reason is that the HCP’s impacts can be directly related to
both Dunphy’s Human and Ecology indicators. Furthermore, the Human indicators
present a direct relationship with aspects of the “talent development”. Additionally, it is
relevant to mention that in his book (Dunphy, 2003) the author presented several case
studies which, like the HCP aim to embed corporate sustainability as organisational
change, and from which he developed his model.
As part of our research we designed a model which is set out in Figure 1. This model is
used to test our two first hypotheses, mentioned in section 2: case HSBC description. The
model involves 3 main categories of the data set in relation to the HCP participants’
perception: individual development (a development or improvement in leadership
skills, influencing skills and obtaining a wider vision in a broader context); HSBC’s
organisational support (e.g. from line management, from senior business, from the
coach) to the participants for implementation of skills learnt; and commitment to the
organisation (doing a project within my organisation, doing a project in the community
and HCP made me more committed to my organisation) as a “recipient cell” of the 2
first categories. The variables used for the statistical analysis are listed with bullet points
below the title of each category.
For hypothesis 1, “The HCP programme is an effective tool to link talent development
(leadership and influencing skills), organisational support and organisational
commitment with corporate sustainability in the European context”, the statistical
analysis was limited to the categories inside the oval and the variables correlated per
category. Their inter‐connections were not the object of this study.
For hypothesis 2 “HCP managers’ stakeholders see an improvement in leadership skills
in the area of sustainability as an advantage on the labour market”, we used the
stakeholders’ data set (a result of the quantitative survey) and looked for numerical
evidence. The variables used for correlation were those outlining a competitive
advantage for the organisation and the one phrased as “Future leaders need to know
about sustainability”.
Tackling the third and last hypothesis, “HCP participants’ perceptions can be used to
rank organisations in terms of corporate sustainability by using the “Human
Sustainability” indicators of Dunphy’s model” which intends to generate
complementary information about Dunphy’s criteria and implications for the HCP
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programme through the lens of the Human Sustainability criteria, was done through
formulating a set of indicators selected from both surveys (stakeholders and
participants). As indicated in the introduction section, considering talent management as
human capital are highlighted by Dunphy’s model and our purpose is to value them
also as one part of the link between the HCP programme and talent management.
Figure 1: ‘Management sustainability training model’ : Perceptions of the HCP programme and
related elements of talent development (source: Developed by the authors)
Data collection and preparation
The data sources used in this analysis were a literature review and empirical
quantitative data obtained from two surveys; the surveys were designed to evaluate the
learning programme by examining the perceptions of both HCP participants (N=2608)
and stakeholders (N=565). The HCP participants targeted all 3 training formats
described previously but for our research purpose we used only the data generated for
Added value to the labour market •Competitive advantage for the organisation •“Future leaders need to know about sustainability”
Commitment to the organisation • Doing a project within my organisation • Doing a project in the community • Made me more committed to my
organisation
Support from the organisation •Line Manager support •Senior Business as coaching support •Programme support
Individual Leadership Development • Leadership skills • Influencing skills • Vision in a broader context
HCP Participant perception
Stakeholders & Senior Management perception
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the Climate Champion project group (N=325), as the other two groups also contained
non‐HSBC participants.
Our stakeholder perceptions survey addressed the management group inside HSBC and
the survey gathered opinions from Line managers of participants on the Climate
Champion programme, HSBC Climate Partnership senior business sponsors , HSBC
Partnership regional or country coordinators, the group or regional sustainability team
and other managerial groups inside HSBC.
Another criterion for breaking down the databases was to limit our analysis to the
European region only – although for reasons of completeness and comparison we also
included some ”global” values , reported according to statistical significance values.
Data Analysis
In order to find significant differences between the groups (regions), crosstabs and one
way ANOVA were applied to the participants and stakeholders databases. The
correlations of our variables (see our model in figure 1) were obtained by Pearson’s
coefficient values and verified by Spearman’s rho test. All statistical analyses were ran
by SPSS version 15 and procedures were kept in accordance with Pallant, J. 2008.
5. Findings
Europe and global, preliminary tests
Although as mentioned the regional focus of this study was Europe, given the HCP
global implementation, we report here the findings for both the European and the global
regions. We applied two tests to assess the significance values of our participants’
answers: one way ANOVA and crosstabs. The results obtained by crosstabs are in table
1. The “one way ANOVA” outputs shown for all the variables used in our model give a
significance of between 0.06 and 0.504. The threshold on the lower limit is 0.05. The
comparison of significance within regions by variable was also measured under Pos hoc
and the significance values were above the limit of >0.05.
In contrast, when testing the data set for stakeholder’s perceptions of our model’s
variables under the same conditions, the significance values were below the 0.05 limit
when comparing the two groups. The crosstabs outputs for the same data however gave
higher significance values by variable, in particular when the analysis was done
individually by region. But when analysing the data only for Europe, the Pearson sign 2
sided test lay between 0.63 and 0.265.
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Testing the model
In this section we report on how we statistically tested our model. In order to verify our
hypothesis 1, the percentages of agreement by each of the variables were compared with
our model and calculated for both regions: Europe and Global. The number of answers
(N) corresponds to the group of Climate Change programme (12 days, fieldwork). The
last column shows the significance values mentioned in the previous paragraph.
Table 1: Test Crosstabs of the HCP participants’ agreement by the model categories
Category Climate Change Participant
Perception about:
Europe
Agree
Global
Agree
Pearson
sign.
2 sided
Individual
Leadership
development
Developed my leadership skills 57.0%; N=93 68.6%; N=325 0.061
Improved my influencing skills 55.9%; N=93 64,0%; N=325 0.067
Developed my understanding of the
broader context in which I work
68.8%; N=93 75.0%; N=324 0.345
Commitment
to the
organisation
I have done / am doing a climate
change related project or action
within HSBC
78.5%; N=93 75.4%; N=325 0.181
I have done / am doing a climate
change related project or action in
the community
70.6%; N=92 64.4%; N=323 0.274
I feel part of an important global
movement in HSBC that is acting on
climate change
81.7%; N=93 85.5%; N=324 0.074
Support from
the
organisation
I have been well supported by my
line manager to take action on
climate change and sustainability
61.3%; N=93 65.3%; N=325 0.590
I have been well supported by
senior business sponsors1 to take
action on climate change and
sustainability.
43.1%; N=93 52.0%; N=325 0.421
The programme is well supported
by senior managers
57.5%; N=94 57.6%; N=326 0.087
After calculating the agreement by variable and region, given in percentages values, we
proceeded to estimate the correlations among the variables used by each category of our
1 A senior business sponsor is a senior manager who has agreed to give guidance to a climate champion
16
model. The variables of the “Individual Leadership Development” category were
correlated “Bivariate” by Pearson and the results are shown in Appendix 1.
The same procedure was carried out to analyse the correlational relationship between
the variables chosen as indications of commitment to the organisation according to the
CC participants’ perceptions. Values for both, Global and Europe are displayed in
Appendix 2. The same analysis was done for the variables considered in our model as
“support” category and the results are presented in Appendix 3.
In order to verify our second hypothesis, the stakeholders’ perceptions were also
correlated by using variables which evidence whether senior managers see the HCP
programme per se as a competitive advantage and how they project the need of having
future leaders who know about sustainability. The stakeholders’ perception was also
part of the model of figure 1. Table 2 includes the statistical values generated by
frequencies and Pearson correlation coefficients’ tests.
Table 2: Pearson’s correlation coefficients of stakeholders’ perceptions on the added value of CC’s
programme on the labour market
Category: Added
value to labour
market
Global Europe
There is a competitive
advantage for HSBC
in getting involved in
this programme
81.7 %
N=569
r=0.388
Medium*
77.1 %
N=166
r=0.312
Medium* Future leaders of
HSBC need to know
about climate change
and sustainability
93,4 %
N=571
91.0 %
N=166
* Cohen (1988, pp. 79‐81)
The interpretation and analysis of the data is included in the discussion section.
Our 3rd hypothesis: HCP’s participants’ perceptions can be used to rank organisations in
terms of corporate sustainability by using the “Human Sustainability” Indicators (HSI)
of Dunphy’s model” was explored by selecting HSI and correlate them in terms of
conceptualisation with the variables (questions) from the surveys. Most of the indicators
for level 5 and 6 “matched” the variables (from HCP and stakeholders’ surveys) and the
relevant frequencies are indicated in the second column of table 3.
17
Table 3: A comparison of the perception of the HCP community and the Phases in the
development of “Human” corporate sustainability (Dunphy et al., 2003)
.
Phases in the
development
of corporate
sustainability
Human Sustainability indicator (HSI)
HCP community perception
according to indicator and level of
agreement
6. The
sustaining
corporation
a) People are seen as valuable in their
own right.
Not clear evidence.
b) It adopts a strong and clearly defined
corporate ethical position based on
multiple stakeholder perspectives and
seeks to exert influence on the key
participants in the industry and in society
in general to pursue human welfare
“I feel part of an important global
movement in HSBC that is acting on
climate change” (participants)
Europe agrees with 81.7% N=93
Global agrees with 85.5% N 324
(Climate Champions group)
5. Strategic
proactivity
a) Intellectual and social capital are used
to develop strategic advantage through
innovation in products/services.
“Not mentioned directly but strategic
advantage was included in one
question for the stakeholders: “There
is competitive advantage for HSBC in
getting involved in this programme”
(stakeholders)
Europe agrees with 77.7% N=166
Global agrees with 93.4% N=571
b) Programmes are instituted to develop
high levels of competence in individuals
and groups.
“Future leaders of HSBC need to
know about climate change and
sustainability “ (stakeholders)
Europe agrees with 91% N=166
Global agrees with 93.4% N571
c) Communities affected by the
organisation’s operations are taken into
account and initiatives to address adverse
impacts on communities are integrated
into corporate strategy.
“I have done / am doing a climate
change related project or action in the
community” (CC participants)
Europe agrees with 70.6 % N=92
Global agrees with 64.4% N=323
d) The corporation views itself as a
member of the community betterment by
offering sponsorship or employee time to
participate in projects aimed at promoting
community cohesion and well‐being.
“This programme is worth the
investment of time required”
(Stakeholders)
Europe agrees with 76,9 % N=165
Global agrees with 84.6 % N= 570
18
6. Discussion
The use of statistical tests like crosstabs and one way ANOVA did not indicate any
significant differences between ‘Europe’ and the ‘global region’ when analysing the
participant’s perceptions, see table 1 in findings section. The two tests gave values of
significance for all our model’s variables in the range of 0.06 – 0.504.
As far as the data set on the stakeholders perception is concerned, the significance value
was not larger than 0.05 for all the variables, when comparing Europe and the global
region. However, crosstabs outputs for the same data gave higher significance values by
variable, in particular when the analysis was done individually by region. Furthermore,
by analysing the data only for Europe, the Pearson result lay between 0.63 and 0.265.
In table 1 which shows our analysis regarding hypothesis 1, the level of agreement by
CC participants for Europe and the Global region was presented to illustrate how the
variables were ranked globally and to find relevant differences by variable in the
European region.
It was interesting to see the influence of the sample size on most of the percentages.
Leaving the sample effect aside, the data on the global scale indicated a higher level of
agreement than those in the European context. There were few exceptions to this
observation. Only for the variable (question) related to “I have done / am doing a climate
change related project or action in the community” the European perception was higher
than the global one, by 6%.
For Europe and Global, the highest percentage corresponded to the variable of “I feel
part of an important global movement in HSBC that is acting on climate change” with
81.7% of agreement by the CC programme participants. This reflects one of the most
important impacts of the CC programme (HCP in general) which is perceived by the
participants and can be interpreted as an indication of “commitment to the
organisation”.
Regarding the lowest degree of perception, it was for the variable related to the
“support” category (I have been well supported by senior business sponsors to take
action on climate change and sustainability (mentorship)) with correspondent
agreements for Europe and Global of 43.1% and 52% respectively. This highlighted one
of the potential improvements perceived by the participants in terms of support.
Actions at this regard should be taken by the HCP programme managers’ group.
19
OUR MODEL (hypothesis 1 and 2)
A) the Category of individual development
By using a Pearson correlation (see Appendix 1) for the CC group (training length of 12
days, fieldwork) the correlation of 3 variables related to the leadership development for
global (N=325) were scored as “Large” while for the European region (N=93) the value
of “r” for some of the correlations was between “Medium” and “Large” levels, “r” was
spread between 0.393 and 0.514. This indicates that we have made the right selection of
variables, in accordance with our model in figure 1, to assess individual development as
part of the HCP programme’s impacts.
The results above proved that the perceptions of the CC participants allow the
identification and matching of characteristics denoted in our literature discussion section
and bibliography as part of the individual development as the variables proved a
significant (r>0.507) correlations for Global region and for Europe (r>0.393) with the
improvement of leadership skills.
The HCP programme has been described by some of their senior managers as a
“supplementary opportunity for employees to deploy their abilities and develop a set of
skills on sustainability issues and apply them in projects which are socially responsible”.
B) the category of commitment to the organisation
In the category of commitment to the organisation, we analysed the relationship
between 3 variables by using Pearson’s technique, see Appendix 2 for results. The
results gave both regions (global; N = 326 and Europe; N=94) rankings at “Medium” and
“Small” levels (Cohen, 1988). For the global region, the maximum value of “r” was 0.430
(N=326) and for Europe it was r=0.41 (N= 93). This result was for the correlation between
the variables: “I have done/am doing a climate change related project or action in the
community” and “I have done/am doing a climate change related project or action
within HSBC”. The rest of combinations for Europe and global had ‘Small’ level (r>0.1).
Only for the variable “I feel part of an important global movement” the correlation was
“any”, which means that the value of ʺrʺ was lower than 0.1. One way to explain this
result is to assume that the variables selection was not suitable for this category.
However, we can still argue that although the correlation between variables was not
highly enough ranked its representation in this category can be justified given its level of
agreement among participants with 81.7 % (N=93) in Europe and 85.5% (N=324) global.
C) the Category of organisational support
The labels of “Large”, “Medium” and “Small” were defined by Cohen’s (1992) in order to put in common words the “r” values .
20
In the category of support provided for the implementation of the CC programme, the
levels of correlations fluctuated between “Medium” and “Large”, which means that
participants perceived the support in general at the same level for the 3 variables,
although the values in percentage (table 1) highlight low percentage of agreement
(43.1%; N=93; Europe) for the variable “I have been well supported by senior business
sponsors to take action on climate change and sustainability”. The low percentage value
gives us an indication of how some participants perceive mentorship as one of the
inconveniences during implementation – something that can be related to the answers
given in one of the open questions in the survey in which suggestions were asked for
improvements and it was indicated that in order to have a better understanding between
participants and mentors, the mentors should also take part in the CC programme
(Malnick and Gitsham (2010).
Some participants believe that in spite of developing their talent towards understanding
sustainability and increase their commitment to the organisation, they are facing
institutional barriers like not receiving enough support to implement what they learnt in
particular aspects. These include further support e.g. regarding access to resources (time,
budget and power) to engage in new projects in Climate Change or sustainability. This
indicates HSBC is maintaining a normal reality check.
Hence it will be a real challenge for the organisation to facilitate the complex process of
talent development, provide the conditions required and especially to marry individual
expectations with corporate reality and there are no guarantees that after developing
this special talent (and their skills set) the business will be ready and prepared to
welcome the “new” experience, expertise and skills, and be able to keep them on board.
Therefore, post training actions should accommodate the talent prepared for dealing
with sustainability issues, and improvement issues should be detected and dealt with.
This leads to one further question for further research: What are the barriers faced
during the implementation of training programmes on sustainability which represent
risks for talent retention?
THE LABOUR MARKET
As reported in the literature, one of the benefits that HSBC receives by making
sustainability issues part of their business strategy is “branding”. The organisation is
recognized as one of the leading banking groups due to its initiatives in embedding
sustainability issues in the business. This external, client, perception may also impact the
perception the employee has of his/her employer. And subsequently may lead to a
higher commitment of the employee to the organisation (Malnick & Gitsham, 2010). A
number of issues may contribute to this, such as the ethical motivation at CEO level to
have this vision and to engage in sustainability, market pressure, business responsibility
and the effect on branding and reputation. Working for a well branded company with
this sustainability label and being part of the leaders group in this respect give an
21
employee’s profile added value. Moreover, the HCP training/coaching also has value on
the labour market and as a consequence will bring more opportunities for the employee.
Bearing this in mind, in relation to our hypothesis 2, we reported in table 2 the
correlation of 2 variables which showed the stakeholders’ perception (mainly HSBC
senior managers) about the effect of the CC programme in the organisation.
Independently of the correlation values (r), which were “Medium” for both Europe and
the global regions regarding “Competitive advantage” and for “Future leaders need to
know about sustainability”, there was a high percentage of agreement among the
respondents for each variable (see table 2). This indicates that the perceptions of the
stakeholders gave an extra value to the CC programme which can be related to the
labour market.
DUNPHY’S MODEL (hypothesis 3)
As mentioned in the finding section, we made a selection of the Human Sustainability
Indicators (HSI) (table 3) which were connected with the HCP components. This was
done by choosing those variables which matched in terms of words used and context
with the HSI. And the purpose of the comparison was to give a general picture of to
what extend Dunphy’s HSI can be a framework to discuss the impact of
training/coaching programmes like HCP. In spite of the matches between HSI and our
study variables, there was no evidence that this was the case e.g. for “People are seen as
valuable in their own right”. This was reported in table 3 as ”No clear evidence”.
In a previous work (Malnik and Gitsham, 2010) Dunphy’s model was compared for the
Ecological component based in the interviews to HCP community members which were
related to Dunphy’s model. They reported two main conclusions after Dunphy’s
application:
“Within any group of Climate Champions, Senior Managers or other internal
stakeholders, there is evidence of a variety of different stages of response to
sustainability issues in HSBC. Many approaches and perspectives focus entirely on
efficiency and cost saving (phase 4), others on reputation, regulation and compliance
(phase 3) and a few on innovating new products and services (phase 5).”
“There is much to be gained from considering the different types of learning,
interventions and support that each stage of response may require, and reflecting on
what level response(s) the programme is aiming for”.
In our analysis, the perceptions of the HCP participants, senior managers and other
internal stakeholders were used as evidence. There were different stages of response to
HSI criteria as showed in figure 6. For each of the rows it can be seen what was used
from the HCP programme to “evaluate” the HSI in particular. The CC participants’
agreement (Europe (N=93) and Global (N=323)) and stakeholders’ ones (Europe (N=166)
and Global (N=571)) varied between 75% and 93%.
22
Although the level of agreement for such variables was high, we want to raise the point
here that Dunphy’s model remains as no more than a conceptual indication due to the
fact that there are no “acceptance” scales associated by indicator saying that effectively
the organisation fulfilled the conditions or not. Therefore, we have decided that
thresholds and procedures to be able to quantify the HSI are missing. For instance, what
does it mean, what ‘value’ should we put on the fact that the indicator of “c)
“Communities affected by the organisation’s operations are taken into account and
initiatives to address adverse impacts on communities are integrated into corporate
strategy” has an agreement of 64.4% in Europe and 70% in Global? Although there is a
clearer case for the rest of the HSI, in that their acceptance level was more in evidence as
the values are higher than 77%, representing indeed the majority of perceptions by
group, we still believe that further research is needed in this respect. For the moment the
only conclusion we can draw here is that as a whole and from the results analysis, we
rank the CC (HCP programme) in phase 5 under Dunphy’s HSI criteria.
Conclusions
Managing and developing talent is a hard task at the best of times. Currently however,
managers and leaders not only need to demostrate the required managerial knowledge
and skills required, but also to understand the requirements of sustainability.
We have been in the unique position of having access to the data of a survey in which
the perception of participants in the HSBC Climate Partnership (HCP) programmme and
their managers and other stakeholders in HSBC was researched. The survey focused on
three issues: personal development of the participants; their further commitment, or not,
to the organisation; and the support, or not, of the organisation for the implementation
of what was learnt during the programme. A fourth issue investigated whether
stakeholders perceived that the labour market would value talent that was
knowledgeable about sustainability.
Our analysis led to the following conclusions:
1. Participants felt that through the HCP programme they have developed the special
skills that are needed to master sustainability. For example, participants responded
positively to questions related to leadership, influencing skills, and a broader vision,
independent of the region in which they were based.
2. Climate Change training has led to an increase in HCP participants’ organisational
commitment to HSBC, as verified through internal as well as community variables.
23
3. Participants felt that the organisational efforts by their HSBC managers to support
implementation of what was learnt in the HCP programme was acceptable, but not
always as easily forthcoming as is suggested, and felt this was an issue that could be
improved.
4. Stakeholders in the labour market saw participation in HCP as valuable.
5. The Dunphy model is a useful vehicle to rank the HCP programme in terms of human
sustainability indicators, on the basis of the variables used in the participants’ and
stakeholders’ surveys. Most indicators proved to be measurable for our case study by
using the perceptions of HCPʹs participants and managers.
The literature reviewed provided insight into the factors that play a role in talent
management and talent development theories which can be adapted to the specific
organisation’s requirements and conditions. The model that we (t) developed (Figure 1:
‘Management sustainability training model’) can help organisations to create the
awareness for embedding sustainability within the organisation. This is because the
the organisation requires for people with knowledge, skills and behaviour for
implementing action on sustainability issues.
The link between talent development and sustainability corporate programmes has
proved to be a relevant research area where many questions have been raised and
further empirical research would prove valuable.
We trust that our findings may inspire organisations to invest in talent development
through training programmes on sustainability and projects associated with social
responsibility. Employees’ increased commitment to the organisation, enhanced by
sustainability training programmes, can improve the retention of these talented people
whom the organisation has (1) invested in, provided the organisational commitment (2)
and conditions are also favorable to facilitate (3) employees’ action on sustainability
projects.
Limitations of this research and further research
Our research was focused on the perceptional analysis of the employees who
participated in the HCP programme, such analysis gave us indications to validate the
variables used in our “Management sustainability training model”. Nevertheless, we
foresee, in one hand, that the model requires complementary validation by including
participants’ perceptions about their level of individual skills, prior to the HCP
programme. In another hand, we also consider that the same research is necessary to
carry out with a sample of HCP non‐participants (control group). By doing time series
analysis for both groups ‐HCP participants (experiment group) and control group‐ we
can elaborate stronger arguments about the linkage(s) between the HCP programme and
24
individual skills development. Certainly, the variables of the categories “Support from
the organisation” and “Commitment to the organisation” need to be considered in such
research design as contextual components of the category “individual leadership
development”.
Another potential niche for further research is the external dimension of the
“Management sustainability training model”, i.e. how organisations are ‐or should‐ be
prepared to accommodate the ”added value of skilled leaders in sustainability” into the
labour market and use it as a competitive advantage. Questions associated to identify
barriers and drivers of the external dimension of our model need further attention for
better understanding.
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Appendix 1:
Pearson’s correlation coefficients of CC’s perceptions on Individual development
Category
Global Europe
Perception of
Individual
development
by CC
Participants
Mean
N=325
1. 2. 3. Mean
N=93
1. 2. 3.
1. Developed
my
leadership
skills
1.26
1
r=0.67
Large*
r=0.54
Large*
1.46
1
r=0.50
Large*
r=0.39
Mediu
m*
2. Improved
my
influencing
skills
1.29 r=0.67
Large*
1
r=0.63
Large*
1.36 r=0.50
Medium
1
r=0.51
Large*
3. Developed
my
understandin
g of the
broader
context in
which I work
1.09 r=0.54
Large*
r=0.63
Large*
1
1.2 r=0.39
Medium
r=0.51
Large*
1
Cohen (1988, pp. 79‐81)2
2 The labels of “Large”, “Medium” and “Small” were defined by Cohen (1992) in order to put in common words the “r” values .
28
Appendix 2:
Correlation coefficients of CC’s perceptions on Commitment to the organisation
Category Global Europe
Category: Commitment to the Organisation
Mean N=324
1. 2. 3. Mean N=93
1. 2. 3.
1. I have done / am doing a climate-change related project or action within HSBC.
1.09 1
r=0.430 Medium*
r=0.235 Medium*
0.89 r=0.410 Medium*
r=0.078 Any
2. I have done / am doing a climate-change related project or action in the community
1.38 R=0.43 Medium*
1
r=0.217 Small*
1.23 r=0.410 Medium*
r=0.140 Small*
3. I feel part of an important global movement in HSBC that is acting on climate change
0.80 R=0.25 Small*
r=0.217 Small*
1
0.91 r=0.078 Any*
r=0.140 Small*
* Cohen (1988, pp. 79‐81)
29
Appendix 3:
Pearson correlation coefficients of CC’s perceptions on Support aspects
Global (N=325) Europe (N=93)
Category : Support
from the
organisation
1. 2. 3. 1. 2. 3.
1. I have been well
supported by my
line manager to
take action on
climate change and
sustainability
1
r=0.515
Large*
r=0.428
Medium*
1
r=0.440
Medium*
r=0.316
Medium*
2. I have been well
supported by
senior business
sponsors to take
action on climate
change and
sustainability.
r=0,515
Large*
1
r=0.53
Large*
r=0.440
Medium*
1
r=0.489
Medium*
3. The programme
is well supported
by senior managers
r=0.428
Medium*
r=0.53
Large*
1
r=0.316
Medium*
r=0.489
Medium*
1
* Cohen (1988, pp. 79‐81)