Asset management (Wikipedia) Asset management, broadly defined, refers to any system that monitors and maintains things

of value to an entity or group. It may apply to both tangible assets such as buildings and to intangible concepts such as intellectual property and goodwill. Asset management is a systematic process of operating, maintaining, upgrading, and disposing of assets cost-effectively. Alternative views of asset management in the engineering environment are the practice of managing assets to achieve the greatest return (particularly useful for productive assets such as plant and e!uipment), and the process of monitoring and maintaining facilities systems, with the ob"ective of providing the best possible service to users (appropriate for public infrastructure assets). Infrastructure asset management Infrastructure asset management is the combination of management, financial, economic, engineering, and other practices applied to physical assets with the ob"ective of providing the re!uired level of service in the most cost-effective manner. It includes the management of the whole life cycle (design, construction, commissioning, operating, maintaining, repairing, modifying, replacing and decommissioning#disposal) of physical and infrastructure assets. $%& 'perating and sustainment of assets in a constrained budget environment re!uire some sort of prioriti(ation scheme. Historical background of asset management )ivili(ation has always relied on its technological assets to support key functions like transport, public health, business, and commerce. *here is a clear link between the provision and sophistication of technological assets and our modern lifestyle. +omans built a strong empire through their construction of roads, a!ueducts and other assets. ,imilar stories are found when e-amining Asia, Africa. Financial asset management Investment management the sector of the financial services industry that manages collective investment schemes and segregated client accounts. Enterprise asset management .nterprise asset management is the business processes and enabling information systems that support management of an organi(ation/s assets, both physical assets, called 0tangible0, and non-physical, 0intangible0 assets. 1hysical asset management the practice of managing the entire life cycle (design, construction, commissioning, operating, maintaining, repairing, modifying, replacing and decommissioning#disposal) of physical and infrastructure assets such as structures, production and service plant, power, water and waste treatment facilities, distribution networks, transport systems, buildings and other physical assets. Infrastructure asset management e-pands on this theme in relation primarily to public sector, utilities, property and transport systems. Additionally, Asset 2anagement can refer to shaping the future interfaces amongst the human, built,

and natural environments through collaborative and evidence-based decision processes. 3i-ed assets management an accounting process that seeks to track fi-ed assets for the purposes of financial accounting. I* asset management the set of business practices that "oin financial, contractual and inventory functions to support life cycle management and strategic decision making for the I* environment. *his is also one of the processes defined within I* service management. 4igital asset management a form of electronic media content management that includes digital assets.

Public asset management or corporate asset management (CAM) 1ublic asset management (also referred to as corporate asset management) e-pands the definition of enterprise asset management (.A2) by incorporating the management of all things of value to a municipal "urisdiction and its citi(ens/ e-pectations. An .A2 re!uires an asset registry (inventory of assets and their attributes) combined with a computeri(ed maintenance management system ()22,). All public assets are interconnected and share pro-imity, and this connectivity is possible through the use of 5I,. GIS-centric public asset management standardi(es data and allows interoperability, providing users the capability to reuse, coordinate, and share information in an efficient and effective manner by making the 5I, geo-database the asset registry. A 5I,-centric public asset management that standardi(es data and allows interoperability, providing users the capability to reuse, coordinate, and share information in an efficient and effective manner. In the 6nited ,tates the de facto 5I, standard is the .sri 5I, for utilities and municipalities. An .sri 5I, platform combined with the overall public asset management umbrella of both physical 0hard0 assets and 0soft0 assets helps remove the traditional silos of structured municipal functions. While the hard assets are the typical physical assets or infrastructure assets, the soft assets of a municipality includes permits, license, code enforcement, right-of-ways and other land-focused work activities. *his definition of 0public asset management0 was coined and defined by 7rian 8. 9aslam, 1resident and ).' of an international 5I,-centric )omputeri(ed 2aintenance 2anagement ,ystem ()22,) company that produces software certified by the :ational Association of 5I,-)entric ,olutions (:A5),). 5I,-centric public asset management is a system design approach for managing public assets that leverages the investment local governments continue to make in 5I, and provides a common framework for sharing useful data from disparate systems. 1ermits, licenses, code enforcement, right-of-way, and other land-focused work activities are e-amples of land-focused public assets managed by local government. *hese public assets occupy location "ust as in-the-ground or above-ground public assets do.

5I, is not a panacea; effective asset managers of physical assets such as buildings make informed-decisions about what to do and when to their assets in-order to ma-imi(e resource-return on their organi(ational goals. ,ometimes, information displayed geospatially can help those decisions. 2ore often, however, deep understanding of markets, engineering systems, and human interaction enabled by analysis and synthesis of information lead to these effective decisions. *he geospatial conte-t may not be the most important one to make understand these facets. 8and-use development and planning is interconnected to other local government assets and work activities. 1ublic asset management is the term that encompasses this subset of land-focused asset management, considering the importance that public assets affect other public assets and work activities and are important sources of revenue and are various points of citi(en interaction.

Asset Management (Investopedia) Definition of 'Asset Management' 1. The management of a client's investments by a financial services company, usually an investment bank. The company will invest on behalf of its clients and give them access to a wide range of traditional and alternative product offerings that would not be to the average investor. 2. An account at a financial institution that includes checking services, credit cards, debit cards, margin loans, the automatic sweep of cash balances into a money market fund, as well as brokerage services. Also known as an "asset management account" or a "central asset account". Investopedia explains 'Asset Management' 1. The e pense of this service generally restricts it to high net!worth individuals, governments, corporations and financial intermediaries. This includes such products as e"uity, fi ed income, real estate, agriculture and international investments. 2. #hen individuals deposit money into the account, it is placed into a money market fund that offers a greater return that can be found in regular savings and checking accounts. The added benefit to individuals is that they can do all of their banking and investing at the same institution instead of having a bank and brokerage account at two different

companies. These types of accounts came about with the passing of the $ramm! %each!&liley Act in 1''(, which replaced the $lass!)teagall Act. The $lass!)teagall Act was created during the $reat *epression and did not allow financial institutions to offer both banking and security services. European Answers to the Financial Crisis: Social Banking and Social Finance +rom 2,,( to 2,1,, a financial and economic crisis gripped the -nited )tates, .urope and the world. ( million Americans and 2 million .uropeans lost their /obs, and 1, million were pushed below the poverty line. Thousands of families lost their homes, and many lost their savings. A global recovery from the effects of the crisis will take years. As a result of the crisis, social banking and social finance have become important trends among bank customers in .urope. 0n fact, .uropean social banks are the big winners of the crisis, growing by more than 2,1 per year and doubling their assets between 2,,( and 2,1,. The crisis transformed social banks from niche institutions to large, publicly visible players. This success is due to the conviction of a growing number of bank customers in .urope that social banking is a less speculative and more responsible, ethical, and community!oriented way to deal with money than traditional banking. 0n the aftermath of the crisis, many see social banking as less egoistic and more caring for the overall progress of society than mainstream banking. Thus, social banking may provide important lessons for the banking and finance sector as a whole, in order to avoid further crises in the future. 0n order to see what can be learned from social banking, let us first take a look at what social banking is2 second, review the most important social banks today2 and third, e amine lessons from the success of social banks. What is Social Banking? )ocial banks define themselves as "banks with a conscience". They focus on investing in community, providing opportunities for the disadvantaged, and supporting social, environmental, and ethical agendas. )ocial banks try to invest their money only in endeavours that promote the greater good of society, instead of those which generate private profit /ust for a few. This means that social banks consider social and economic "sustainability" when making financial decisions. ")ustainable" investments and lending practices are ones that produce a better "uality of life for the greatest possible amount of people, and whose effects endure over time and continue to produce a multiplicity of positive effects long after the initial investment is made.

The main difference between mainstream banks and social banks is this3 #hile mainstream banks are in most cases focused solely on the principle of profit maximization, social banking implements the triple principle of profit-people-planet. )ocial banks care about making a profit, but equally for promoting human and environmental well!being. 0t is this "triple principle" that they follow when they decide to whom to lend money, and for what purpose. +or social banks, the responsibility for the whole of society is the most important measure for a good lending practice and is more important than profit alone. This is why social banking is often called "banking for social cohesion", or "cooperative banking", instead of the competitive banking approach that has dominated the banking world in past decades. &anking for social cohesion means considering what money does for whom. )ocial banks in .urope lend money to socially responsible initiatives for much lower interest rates than mainstream banks, and donate money to people and pro/ects that promote the greater good. 4an you image a bank giving money as a gift, because it believes that in doing so, it is advancing the greater good of society5 )ocial banks do6 To do this, banks must be free from pressure, and be small and fle ible enough to make decisions "uickly. &anks must trust their ideals and their /udgement in borrowers, which is only possible if based on direct, personal relationships with customers. This is one reason that social banks refuse to become publicly traded companies listed on the stock e change. -nlike large mainstream banks, social banks believe that this would put too much pressure upon them to focus only on ma imi7ing profits, and to become anonymous "money machines". This leads us to three additional features of social banks that make them uni"ue in the financial world3 1. Responsibility. )ocial banks know their customers personally. They care about mutual responsibility, and e pect borrowers to use loans responsibly for the greater good. This e cludes, for e ample, reckless speculation or other risky investments. )ocial banks want their money to be invested wisely and ethically. )ome call this approach "soft money" or "slow money". 2. Transparency. -nlike many mainstream banks, social banks know what is done with the money they lend to their customers. They look at the impact their investments have on the greater community ! for e ample, if money they lend is used to harm or to protect natural environments, to e ploit or to help people, to generate a better life for many or huge gains for /ust a few at the e pense of others. )ocial banks provide full accounts to all their depositors of how their money is lent. This means that depositors not only earn interest but also know e actly what their money "does" while at the bank. 8. Sustainability. #hile most mainstream banks are focused on creating short term profit, social banks focus more on the long term effects of money. They aim to develop society, the environment and individuals,

making investments in small pro/ects that may "snowball" in to larger positive effects over time. 0n summary, social banks aim to practice responsibility, transparency and sustainability. They consider the long!term effect of money on the environment and the community, and about the "human outcome" of the use of money in general3 whether it helps or harms profit, people, and the planet. Which are the most important social banks today? 0n contemporary .urope, some of the important financial players are social banks. Their combined assets total about 1,.9 billion .uro :;1<.9 billion=, and continue to grow rapidly. 0t is e pected that the overall growth rate of .uropean social banks will remain stable at 18!191 per year in the coming years :as compared to the 1!81 forecast for mainstream banks=, and that social banks will serve upwards of 1 billion people by 2,2,. The reason is simple3 during the recent financial crisis, many customers became aware of the flaws of mainstream banks, as outlined above, and responded by shifting their assets to social banks. The biggest social banks in .urope today are the $erman $emeinschaft f>r %eihen und )chenken :$%)= &ank, its name meaning literally "4ommunity for %ending and *onating" :with assets of ;2.2 billion=, the *utch Triodos &ank :;?.( billion=, the 0talian &anca .tica :;,.@ billion=, the )wiss A&) bank :;,.( billion= and the *anish Aerkur &ank :;,.2 billion=. These banks were founded throughout the 1'(,s :$%) bank=, 1'@,s :Triodos= and 1'',s :&anca .tica=. Altogether, there are more then ?,, ethical investment funds worldwide, including about 9,, in .urope, and their numbers are constantly increasing. Aany of the social banks in .urope work closely together, and they increasingly cooperate with social banks around the globe. 0n Aarch of 2,,', twelve social banks from around the globe founded the $lobal Alliance for &anking on Balues :$A&B= in %ondon. As the association declared at that meeting, "This Alliance is created in the belief that trends can be set to change the boundaries of mainstream finance, and contributions can be made to the growth and development of social innovation in the financial sector. The Alliance is a global alliance of innovative banking institutions, focused on delivering social finance products and basic financial services, while financing community based development initiatives and social entrepreneurs thereby fostering sustainable and environmentally sound enterprises, and fulfilling human development potential including poverty alleviation, while generating according to a triple principle3 for Ceople, Crofit and the Clanet" 1 The $A&B is the newest global /oint venture of social banks, following previous initiatives from as early as 1'@' by the 0nternational Association of 0nvestors in the )ocial .conomy, or 0DA0).. #hile $A&B is an alliance of relatively larger social banks that speciali7e in the international financial

sector, 0DA0). is made up of small banks, civil society groups, and local and regional community initiatives. Academic research and educational engagement in the fields of social banking and social finance have increased in recent years, with the establishment of new institutions like the )koll 4entre for )ocial .ntrepreneurship at the )aid &usiness )chool of E ford -niversity in 2,,8! and the 0nstitute for )ocial &anking in &ochum, $ermany, in 2,,? ". There is an increasing consciousness that a sound education in social banking and social finance will be a decisive step in shifting the mainstream attitude toward money and finance in a more humanistic direction. +or e ample, the 0nstitute for )ocial &anking $ermany, an official pro/ect of the -nited Dations' -D.)4E *ecade of ".ducation for )ustainable *evelopment" from 2,,9!2,1<,# awards globally recogni7ed Aaster's degrees :and will soon award Ch*'s= in )ocial &anking and +inance. The goal of the pro/ect's research and teaching is to show the relationship between money, finance, environment, culture and society in our globali7ed world, and to encourage people to develop alternative and progressive attitudes toward money and finance. 0n the -.)., social banks e isted even before their .uropean counterparts3 for e ample, the 4hicago!based )horebank was founded in 1'(8, the #ainwright &ank and Trust 4y were founded in the 1'@,s, and the Dew Fesource &ank was founded in 2,,?. 4urrently, two -.). based banks :)horebank and The Dew Fesource &ank= are members of the $A&B. According to 0DA0)., there are currently 2,!8, social banking and social finance initiatives in the -.)., and their number has grown rapidly during the financial crisis between 2,,( and 2,1,. #hile most -.). social banks are smaller than their .uropean counterparts, they are growing at a similar pace. Together, social banks in the -.). and .urope can continue to e pand and strengthen the global network of ethical finance. $essons %or the %uture )o what can social banks teach us about the future of money of finance5 0n the wake of the financial crisis of 2,,(!1,, many people have begun to seek a new, better system of money and finance. Ene approach is to strengthen laws governing mainstream banking. The -.). administration of Cresident &arack Ebama and many .uropean governments are working to implement such laws, in order to e ercise greater control over the investment practices of banks and to limit speculation. )uch an approach from the outside of the banking and finance sector is certainly necessary. Gowever, a more promising approach in the long run is to develop an entirely different type of bank, one that acts responsibly, and considers the long term effects of its lending practices. )ocial banks fulfill this role. They can help the global financial system develop from within by providing "best practice" e amples3 concrete success cases that other banks and policymakers can learn from.

)ocial banks are not the answer to every problem with the financial sector, and they will not be enough to solve the problems that lead to the financial crisis of 2,,(!2,1,. There are some well!grounded criticisms of social banking3 that current institutions are still too small to affect global change2 that they remain niche institutions, and are in some cases over! speciali7ed2 and that if the financial system as a whole followed their e ample, capitalism would not function as successfully as it has in the past. #hile these arguments should be considered seriously, social banks provide a worthwhile e ample of a progressive new approach to finance. 0f we embrace the three goals that Dobel Ceace Award %aureate and former Fussian president Aichail $orbachev outlined as imperative for a better future ! peace, fighting poverty and promoting global social /ustice and common wealth, and protecting the environment&! then social banking and social finance may indeed have contributions to offer. The /ournalist Feihan )alam predicts that the aftermath of the recent financial crisis will result in a cultural shift in the -nited )tates :and we can predict similar changes in .urope too=. 0f his prediction is correct, local governments, mobili7ed by popular support, may take on the task of building new local banking infrastructures owned by the entire community. This could "evolve into a new confidence that citi7ens working in common can change their lives, and in doing so can change the world around them."' )ocial banking and social finance can serve as a powerful instrument toward this purpose. +or those who wish to investigate this topic further, a new, accessible book by the author will be published in winter 2,1,. Clease see Foland &enedikter3 Social Banking and Social Finance: Ans ers to t!e "conomic #risis, )pringer &riefs in &usiness, )pringer Dew Hork 2,1,, available at3http:((www)springer)com(business* + &*management(%inance(book(,'-.1.""1,.'''!.1. A brief summary of the book is available on the web site of The .urope 4enter, at3http:((europe)stan%ord)edu(publications(social/banking/and/ social/%inance/answers/ to/the/economic/crisis(

1 4. )cheire and ). *e Aaertelaere3 &anking to make a difference. A preliminary research paper on the business models of the founding member banks of the $lobal Alliance for &anking on Balues. Artevelde -niversity 4ollege $ent, Iune 2,,', pp. <. 2 The 0nternational Association of 0nvestors in the )ocial .conomy3http:((www)inaise)org(.

8 The )koll 4entre for )ocial .ntrepreneurship at E ford -niversity3http:((www)sbs)o0)ac)uk(centres(skoll(1ages(de%ault) asp0. < The 0nstitute for )ocial &anking &ochum3 http:((www)social. banking)org(en(news(. 9 -D.)4E *ecade ".ducation for )ustainable *evelopment" 2,,9! 2,1<3http:((www)unesco)org(en(esd(. ? A. $orbachev3 Aanifesto for the .arth3 Action Dow for Ceace, $lobal Iustice and a )ustainable +uture, 4lairview books 2,,?. ( F. )alam3 The *ropout .conomy, l. .thical banking An ethical bank, also known as a social, alternative, civic, or sustainable bank, is a bank concerned with the social and environmental impacts of its investments and loans. .thical banks are part of a larger societal movement toward more social and environmental responsibility in the financial sector. *his movement includes ethical investment, socially responsible investment,corporate social responsibility, and is also related to such movements as the fair trade movement, ethical consumerism, boycotting, etc. *he most notable association for ethical banking is the 5lobal Alliance for 7anking on <alues. 'ther areas, such as fair trade, have comprehensive codes and regulations to which all industries that wish to be certified as fair trade must adhere. .thical banking has not developed to this point; because of this it is difficult to create a concrete definition distinguishing e-actly what it is that sets an ethical bank apart from conventional banks. .thical banks are regulated by the same authorities as traditional banks and have to abide by the same rules. While there are differences between ethical banks, they do share a common set of principles, the most prominent being transparency and social and#or environmental aims of the pro"ects they finance. .thical banks sometimes work with narrower profit margins than traditional ones, and therefore they may have few offices and operate mostly by phone, Internet, or mail. .thical banking is considered one of several forms of alternative banking. History[edit 9istorically banks have been viewed solely as financial institutions, which should concern themselves with all things financial. 2orality has not entered the e!uation. *his public view has allowed banks significant leeway with concern to ethical standards. *his is because they have not been associated with the actions taken by the businesses they lend to. 7anks have also stated that a reason for not mounting the new challenges that sustainability presents is that such inspection would re!uire interference in the activities of clients.=eucken >??> 9owever with changing social demands, and as more is known about the effects that banks can have through their lending policies, banks have begun to feel pressure from the general public, :5's, governments, and the like to go beyond conventional business management. 3or e-ample in the mid-%@@?s the )ooperative 7ank asked A,??? customers what their thoughts were on ethical banking; BCD responded that it was a good idea.9arvey %@@E In

fact the cooperative bank was formed in response to the growing consumer base looking for ethically oriented banks. Potential for banks to create en!ironmentally and socially conscious business practices[edit In general all banks play an intermediary role in the economy; because of this the possibility for banks to contribute to sustainable development is potentially profound. =eucken >??> 7anks have e-tensive and efficient credit approval systems, which gives them a comparative advantage in knowledge (regarding sector-specific information, legislation and market developments).=eucken F 7ouma %@@@7anks are well seasoned and well e!uipped to weigh risks and attach a price to these risks; because of this banks can fulfill an important role in reducing the information asymmetry between market parties, for e-ample between the business and consumers. *his is important not "ust to consumers but also to depositors. When depositors allow a bank to invest for them they are able to assume that the bank will know which investments will ma-imi(e their returns. )onventional banks are legally bound to ma-imi(e return for their clients. If clients are concerned with more than simple return (i.e. the costs of the return on other areas such as society and the environment) then they may need to turn to an ethical bank to find ways in which they can garner return while keeping to their own moral concerns. ,ome businesses e-ternali(e costs onto the environment and society. An e-ample of this would be water pollution. A wood mill, for e-ample, could dump its waste into a local river instead of paying to dispose of it properly. *his cost is then put onto to the public who uses this water; the costs could come in the form of poor health or as a cost to the local water treatment plant. In order to create more e!uitable distribution of costs amongst consumers, the environment, and businesses, banks can raise interest rates or apply tariffs on loans given to clients with high environmental risks. *his tariff differentiation by banks will stimulate the internali(ation of environmental costs in market prices.=eucken F 7ouma %@@@ 2eaning that companies would pay more if their business caused e-tensive environmental damage; taking some of the cost off of society as a whole and putting it on the company. *hrough such price differentiation, banks have the potential to foster sustainability.=eucken F 7ouma %@@@ *his potential would be determined by the e-tent to which all banks worked in unison to create similar regulations that would result in the loss of access loans that treat the environment and#or society as an e-ternality. *hrough their intermediary role, banks may be able to support progress toward sustainability by society as a wholeGfor e-ample, by adopting a Hcarrot-and-stickI approach, where environmental and social front-runners would pay less interest than the market price for borrowing capital, while environmental laggards would pay a much higher interest rate.=eucken F 7ouma %@@@ 7anks can also develop more sustainable products, such as environmental, social, or ethical investment funds. In addition, there is great scope for banks to improve their internal environmental performance.=eucken F 7ouma %@@@ In creating environmental and social screens, banks can promote socially#environmentally geared companies and penali(e those who do not conform to these standards. 9owever it is important that these different possibilities (i.e. social#environmental screens, ethical products, and internal environmental practices) be used as a package. If not, there is a danger that banks could simply do the things that make them look the most ethical (i.e. advertise their recycling program) while not changing other areas that would have a larger impact. If the changes are solely driven by customers, the bank will be pressured to offer

preferential treatment to what depositors deem as desirable, but will have limited ability to punish undesirable action. 5overnmental regulation, initiated by an informed and involved public would be an effective way to ensure that all banks follow socially accepted morals and ethics. Et"ical initiati!es[edit :umerous ethical banks (as well as some conventional banks) allow customers to contribute to organi(ations that have positive societal#environmental impacts either in the local community or in developing countries. .-amples include an evaluation of the energy efficiency of a home and potential improvements in this; carbonoffsets;)oro ,trandberg >??E credit cards that benefit charities$%& or lower interest rate loans for low emission cars.$>& Community in!ol!ement[edit .thical banks e-cel in community involvement, as do other financial institutions such as credit unions. )ommunity involvement is not limited to ethical banks as conventional banks also partake in such actions. *he following are a few e-amples of community involvement done by ethical banks, credit unions, and conventional banks

Affordable housing pro"ects (e-. <ancity F )iti(ens bank) 2any banks#credit unions try to increase financial literacy in the community 5ive local scholarships F sponsorships. 3inancially support community events (for e-. each year *4 )anada trust donates to a local cause).

En!ironmental standards for lending[edit .nvironment is a key focus amongst ethical banks (in this field specially called sustainability or green banks) as well as amongst many conventional banks that wish to appear more ethically oriented or that see switching to more environmental practices to be to their advantage. ,ome view this move as green washing. In general bankers 0consider themselves to be in a relatively environmentally friendly industry (in terms of emissions and pollution). 9owever, given their potential e-posure to risk, they have been surprisingly slow to e-amine the environmental performance of their clients. A stated reason for this is that such an e-amination would Hre!uire interferenceI with a client/s activities.0=eucken >??> While the desire to not meddle in the business of the client is valid, one could also note that banks are re!uired to interfere in the business of their clients regularly to ensure that the clientsI business plan is viable before issuing them a loan. *he kind of analysis that all banks partake in is termed a single bottom line analysis (this analysis only considers financial performance). It is arguable whether or not performing a triple bottom line analysis (an analysis that takes into account environmental, social, and financial performance) would be any more intrusive. Internal !s# e$ternal banking et"ics[edit )onventional banks deal with mostly internal ethics, ethical banks add to internal concerns by applying e-ternal ethics.

Internal ethics: processes in banks[edit] Internal ethics are concerned with the well being of employees, employee and customer satisfaction, benefits, wages, unioni(ation, fair se- and race representation, and the banks environmental standing. .nvironmentally the potential combined effect of banks switching to more environmentally friendly practices (i.e. less paper use, less electrical use, solar power, energy efficient light bulbs, more conscientious employee travel policies with concern to commuting and air travel) is huge. 9owever when compared with many other sectors of the economy banks do not incur the same burden of energy, water and paper use.=eucken F 7ouma %@@@ 2any times such energy efficient changes are not based on moral concern but on cost efficiency. External ethics: products of the banks relationships!products[edit] .-ternal ethics are concerned with the wider ramifications of banks actions. .-ternal ethics looks at the impacts that their business practices, such as who they loan to or invest in, will have on society and the environment. In applying e-ternal ethics, one looks at how the products of banks can be used unethically, for e-ample how borrowers use the money that is lent out by the bank. "iscussion[edit] In general banks are reluctant to broaden the scope of their e-ternal ethics policies because it would re!uire that the bank interfere with the activities of its clients and#or screen its potential clients. .-ternal ethics can be seen as much more important than internal ethics because the potential that the bank has internally to cause huge societal or environmental damage is minimal whereas many companies that banks fund have great potential to cause widespread damage. Internal ethics, such as switching to energy efficient light bulbs, are relatively insignificant if the bank is, for e-ample, simultaneously funding the unsustainable harvest of natural resources. .thical banking is a relatively new sector; along with this fact come problems. *hese problems fall under two categories; the first concerns depositors, and the second concerns ethical banks. In the first categor# lies the problem of really knowing how ethical banks measure or !ualify their ethical policies. 3or e-ample when <ancity#)iti(en 7ank states Hwe seek to work with organi(ations that demonstrate a commitment to ethical business practices,I the depositor is unable to understand what HseekI means. *hese statements sound nice but they do not tell potential depositors how the bank evaluates or uses these statements. *his is insufficient. .ven when given the opportunity to view an accountability report it is difficult to truly understand what their screening processes are. 3or e-ample, the <an )ity Accountability +eport for >??A#?J (for <an )ity credit union and )iti(ens 7ank in )anada)states, 0the .thical 1olicy re!uires that all business accounts are screened at the time of account opening by the staff person dealing with the member. ,ocial and environmental risks of larger business banking loans (non-credit-scored loans) are assessed at the time of the loan application, guided by the .thical 1olicy and 8ending 1olicies.0 *his statement does not give the reader the information s#he needs to understand the criteria used in assessing clients. 9owever statistics such as that given by the )ooperative 7ank (6K), stating that in >??L they reviewed >>E potentially problematic financial opportunities and of these >?D were found to be in conflict with

their ethical statements and were subse!uently denied further business, costing the bank A,BBJ,??? pounds)oro ,trandberg >??E, give the consumer the impression that the banksI proposed ethics, however ambiguous, are being taken seriously. Another issue in this category is that of codes. 2any ethical banks as well as conventional banks voluntarily "oin larger bodies that put forth certain regulations that, according to the rules set by the body, should be followed by members. ,uch outside bodies could act as overarching institutions that could guarantee a certain level of conformance with certain regulations. An e-ample of this in the 6nited ,tates is the 3ood and 4rug Administration. 4epositors who use ethical banks do not have this assurance because there is no e-ternal regulatory body that sets minimum acceptable legal standards. In the second categor# ethical banks face obstacles such as losing business and consumer support to conventional banks, and having to regulate above and beyond the present international legal systems. According to )owton, ). =., and 1. *hompson, 0banks that had signed the 6nited :ations .nvironment 1rogramme (6:.1) ,tatement, a voluntary industry code that promulgated environmental stewardship, transparency, and sustainable development, did not act significantly different than the non-signatories.0)owton F *ompson >??? *hey concluded that, for codes to be more effective; regulators, monitors, and methods of enforcement need to be in place.)owton F *ompson >??? *his problem is similar to the problems faced by the fair trade movement. 7oth the fair trade movement and ethical banks rely on people to pay e-tra for known ethical goods. *here is a limit to how much more people will pay for that guarantee, after that point further initiatives will undercut the banks income and therefore are likely to not be followed. 8osing business to banks that do not screen so strictly is a problem for ethical banks. 2any times ethical banks must work with much lower budgets because of this. .thical banks e-clusion of unethical borrowers often results in the borrowers going to other banks, this brings up the importance of industry wide regulations. 'ne way of raising the industry wide regulations would be for citi(ens to apply pressure on banks. Without this rise it is difficult to impede unethical businesses from finding a bank to finance their pro"ects. A rise in regulations that deal with moral topics is not out of the !uestion. *he current industry wide codes, for e-ample, prohibit the financing of illegal drug production. *his reflects the prominent societal morals against such drugs. .thical banks cannot solely rely upon the legal system to determine whether or not a potential client has acted unethically or whether or not their future plans are unethical. *his is because of the wide range of laws throughout the world. While a business may be lawful in the international setting, this does not mean that the laws were up to the moral standards in which the bank originates. 3or e-ample, e-tensive pollution and labor laws that would not be considered lawful in many developed countries are allowed in many lesser-developed countries. %udging &"at is et"ical[edit )laiming to be an 0ethical0 bank re!uires an ob"ective way to determine what is ethical. 1opular ethical theories that could be used include those of 2ill, Kant and Aristotle.

$ohn Stuart %ill[edit] *he premise of =ohn ,tuart 2ill/s utilitarian ethical theory is that an action/s moral status is dependent on the e-tent to which if it contributes to happiness. *herefore, in 2ill/s perspective a bank would be moral if it tended 0to promote happiness0.(p. %?)2ill %@EJ If the bank in !uestion acts in way that produces the greatest amount of happiness for the greatest amount of people then it will be acting morally according to 2ill. 7ecause the banking sector is so large, comple- and far-reaching in its effects it is difficult to accurately "udge the happiness of everyone affected by the conduct of banks in general or by certain banks in particular. 9owever it sometimes possible to discern which of different possible courses of action would produce the most happiness. 3or e-ample the act of generous philanthropy in forms such as giving back to communities, employees, members, environmental#development groups, etc. will on the whole increase happiness. ,imilarly lending to businesses that do not 0produce the reverse of happiness0(p. %?)2ill %@EJ by, for e-ample, giving to businesses that treat employees fairly and are concerned with such public goods as the environment would also be considered ethical according to 2ill. 5iven that things such as global warming, air pollution, water contamination, and soil pollution negatively affect large groups of the population, if not all of the population (in the case of global warming), banks that chose to partake in the above e-amples could be viewed as contributing to the overall happiness of all people and would hence have moral value. Immanuel &ant[edit] According to Immanuel Kant/s )ategorical Imperative, morality concerns intentions, and not outcomes. A person is moral insofar as they act with a good will, regardless of the conse!uences. With this knowledge one could propose that the act of lending money is not in and of itself immoral and according to Kant/s perspective banks should not be "udged as moral or immoral based on the outcomes of their lending. 9owever the second formulation of Kant/s categorical imperative states 0act in such a way that you always treat humanity, whether in your own person or in the person of any other, never simply as a means, but always at the same time as an end0 (pg. AAM AJ)Kant %@EA. 7ased on this formula one could argue that the whole practice of lending is not ethical, as it treats people as means to gaining money, (mere means) rather than as ends in themselves. Aristotle[edit] 3or Aristotle, lawfulness is important in the measurement of morality, as is e!uality and "ustice. Whether an action is or is not in accordance with the law is an important measurement of morality for Aristotle. 2any banks do business in accordance with the law in all practices. *hey may also specifically seek to do business with lawabiding clients. :evertheless this can be problematic, as laws vary internationally. *his means that a bank could be viewed as ethical even while funding clients who lawfully conduct business in harmful manners. 9owever this measurement is challenged by Aristotle/s statement 0what is "ust in transactions is something e!uitable, and what is un"ust is something ine!uitable0 (p. BC)Aristotle >??>. *his means that a bank needs to take into account the un"ust#ine!uitable behavior of its borrowers to !ualify as an ethical bank. 3or e-ample, lending to a law-abiding corporation that does not pay its employees a sufficient living wage would be immoral.

'ank regulations and t"e free market[edit See also: Wall Street reform *he argument against regulating banks is that the regulations would violate the proper functioning of the free market economy. ,everyn *. 7ruyn disputes this argument in his article 0*he 2oral .conomy0.7ryun %@@@ 9e states that the e-treme disconnection between market actions and morals was never the intent of the market economy/s founding thinkers, specifically Adam ,mith. 9e argues that putting standards and regulations in place that rest on the basic morals of society should not conflict with the free market, but are actually an important part of the proper functioning of the free market. 9is conclusion is based on statements made by Adam ,mith. When ,mith first envisioned the market economy, he did not divorce morals from the market. In fact, morals were supposed to be a natural part of the workings of the market economy. 9e believed that economic transactions should be the result of mutual agreement and should involve morality and friendship. 9e stated that selfishness could obstruct the market economy from running morally. If interpersonal relationships did not play a part, then the interdependency e-perienced by individuals could vanish and unfair play based on greed and mistrust would e-ist. 7ruyn discusses today/s society as one that has lost its basic morals in the market. 9e states that there is a need for a reigniting of civil society.7ryun %@@@ 'riginally, civil society was assumed to be naturally able to regulate the morality of the market, but with the great distances between individuals involved in transactions as time has passed, governments became the prime regulators of morality in economic e-changes. In recent history governments have been pressured to stop interfering in the economy. *his has allowed bodies such as corporations, which operate immorally or at best amorally, to create e-tremely damaging outcomes without legal or societal penalty. 7ruyn promotes the resurrection of civil society, calling society to demand fair practices and to regulate the morality of the economy.7ryun %@@@ 'ne way people could influence civil society would be to act as economic regulators by choosing to do business with banks that do not finance corporations such as the aforementioned.$citation needed& +udolf ,teiner suggested that capitalism has the task of funding economic initiatives; capital should be directed into directions productive for society. 9e proposed that rather than prices being set through either the total control of government regulation, or the total lack of control of a free market, each industry could have self-regulating associations of producers, wholesale and retail businesses, and consumers. *hese associations would determine prices fair to all three groups. *he state would not interfere with purely economic decisions but would be responsible for protecting human rights (this could include a minimum wage and safety in the workplace) and e!uality of its citi(ens/ rights.$L& (,ee *hreefold ,ocial 'rder.) Ayn +and suggested that all the evils, abuses, and ini!uities, popularly ascribed to businessmen and to capitalism, were not caused by an unregulated economy or by a free market, but by government intervention into the economy. Ayn +and G 3ree 2arketCB (ifferences from credit unions[edit )redit unions are not banks but they offer many of the same services as banks (e.g. investment opportunities, commercial and business loans, checking F savings accounts, etc.). )redit unions are member-owned rather than shareholder-owned. *his gives each member more influence in the decision-making process. When a credit union has surplus, the profits made will either be invested into the community

or will go back to the members in the form of 0patronage rebates0 (i.e. che!ues). )redit unions focus on the members because they are also the owners, and on the communities in which they are situated. )redit unions put a higher focus on local community development than banks do. 2ost credit unions lend strictly to people and businesses in the community where the union is located. *his fact leads credit unions to affect communities more positively than regular banks. 9owever, credit unions do not necessarily have the same potential to cause widespread change in business practices as ethical banks do. *his is because credit unions largely avoid the problem of funding unethical corporate#business activities by focusing on funding local businesses, which are easier to monitor and arguably less capable of generating wide-reaching social and environmental benefit.$citation needed&

Social Banks and the Future of Sustainable Finance

'# (laf )eber and Sven *emer This article is based on the book Social Banks and the Future of Sustainable Finance by Olaf Weber and Sven Remer (ed !" #ublished by Routled$e" %&'' ' (n addition to the editors" several authors have contributed individual cha#ters to this book" namely" Riccardo )ilano discusses the history of social bankin$" *eonardo Becchetti describes the role that social banks could have in the economic system" +hristina v ,assavant #rovides valuable insi$hts in the internal mana$ement #rocesses of social banks and -nt.e Toennis introduces $ift money and donations as a social bankin$ #roduct )hat is social banking+

*he term Hsocial bankingI is used in a very heterogeneous way. 3irst, since recently, the term social banking (>.?) is increasingly used to refer to banking based on new HsocialI media, such as the Internet and related software. In this conte-t, the HsocialI part mainly comprises of establishing a direct connection between lenders and borrowers M without necessarily aiming for a social impact. ,econd, particularly in developing countries, social banking is often understood as (subsidised) government or development banking. *hird, and usually also with respect to developing countries, social banking is very commonly associated with microfinance or microcredit. 3ourth, the term is used for banks that mainly or e-clusively serve socially oriented or charitable clients. 3inally, especially in the :orthern hemisphere, the term social banking is used for banks that strive for only doing business with a Npositive impactO. In this sense, Hsocial bankingI often is used interchangeably with HsustainableI, HethicalI or HalternativeI banking. ,)e define social banking as banking that aims to have a positive impact on people and the environment b# means of banking-. 3or the purpose of this article, we follow this latter notion and define social banking as banking that aims to have a positive impact on people and the environment by means of banking. 6sing this definition, one finds only a relatively small group of %?->? HtrulyI social banks worldwide, most of which are members of the 5lobal Alliance for 7anking on <alues (5A7<). *his is a worldwide association of social banks, which describes its members as banks whose Ncentral mission is investment in a society that values human development, social cohesion and responsibility for our natural environmentO (www.gabv.org). We present the members of this alliance including their geographic origin and the si(e of their assets in *able I. 3or more information, the interested reader might refer to the homepages of these banks, which are also provided in /able I.

7esides the 5A7<, many social banks that match our definition are also members of other associations such as the International Association of ,ocial 3inance 'rganisations (www.inaise.org), or the .uropean 3ederation of .thical and Alternative 7anks (www.febea.org). 3urthermore, a number of such .uropean social banks founded the Institute for ,ocial 7anking (I,7; www.social-banking.org), an institute offering training in the field of social banking.

3or all these banks the positive social impact comes first in their missions although they all acknowledge the need for financial viability of their activities. *hus most of the banks grow strongly in terms of their assets, number of clients and financial returns. ,ome even achieved an increase in their assets of more than L?D per year over the last years, while some of their Hnon-socialI peers struggled to keep afloat during the financial crisis. Why do we need these social banksP It is increasingly accepted that business should not operate on the e-pense of but contribute to the well-being of the community at large. With the society being ever more conscious and informed about the behaviour of business organi(ations, to stay successful, business organi(ations will have to take into account not only the needs and ob"ectives of their stockholders but also of all their other stakeholders. 9aving said this, it is not surprising that even 1orter and Kramer recently published an article on creating shared value as reinvention of capitalism in the 9arvard 7usiness +eview>. In this conte-t, social banking can be considered a successful e-ample of an organi(ational model that not only creates economic but also social and environmental value. ,ocial banks enable their depositors and investors to achieve a financial return whilst simultaneously channelling funds to borrowers or investees who are assumed to have a positive impact on the society. *hese banks usually disclose their loan and investment portfolio to the wider community in a very transparent and detailed way. *his provides a sound basis for the bankIs stakeholders to assess whether or not the banksI core activities still meet their e-pectations. *hus social banking can be seen as contributing to more transparency and a democrati(ation of financial and economic processes. 0o1 did social banks develop+ )ontemporary social banking stands in the tradition of two early predecessors. 'n the one hand, these were the H2ontes di 1ietQI, an early type of social bank initiated by religious orders of the 4ominicans and 3ranciscans in %Eth century Italy to provide credit to the poor and combat usury. 'n the other hand, these were the savings and cooperative banks that developed in the %Bth century, first in 5ermany and Austria. *hese banks were founded to serve clients who did not have access to basic banking services such as credit or saving facilities. *hey also had a strong focus on supporting the local community and economy. ,ocial banking today largely builds upon the philosophy of these banks that, in their respective times, were able to create a cultural change in the financial business, away from usury-driven money-lending towards mutually beneficial financial intermediation between depositors and borrowers. 9owever, starting in the %@J?s, the establishment of contemporary social banks can also be seen as a response to issues perceived problematic at that time, such as the widening gap between the rich and the poor, the environmental pollution, the ine!uality between genders, and the military confrontation between the then superpowers. *hus, supporting socially and environmentally motivated pro"ects, modern social banks were (and still are) driven by the ob"ective to work for a more sustainable development on various levels of the society. Examples of contemporar# social banks We now take a more detailed look at these social banks, including their missions and products. 3or this, the 5A7< is a good starting point. As of >?%%, it comprises of %L banks and financial institutions from four continents. 7roadly, one can differentiate two groups of banks, nine social banks from the :orthern hemisphere and four microfinance institutions. All of them integrate social, ethical and#or sustainability aspects into their

mission statements, and use the term sustainable, ethical, social, or community based banking, or microfinance to describe their activities. *he total combined assets of these banks are R >A billion. *he average return on e!uity in >?%? was J.@D. 9owever, the si(e of social banks in the 5A7< varies. *he smallest bank in this group, )ultura 7ank from 4enmark, has assets of only R AA million, whilst the biggest, <ancity from )anada, has assets of R %C billion. )learly though, none of them is comparable to the main players in the financial business in terms of assets, clients or loans outstanding. 3urthermore, most social banks only operate on a national or even regional level, and they all concentrate on core banking activities such as savings and loans. )hat are t#pical social banks products and services+ ,/he ma2orit# of social banking products and services toda# can be described as conventional banking products and services 1ith a social or ethical 3t1ist to them-. ,ocial banks pioneered a number of innovative products and services, such as borrowing or lending communities. *hey also helped to "ump-start a number of sustainably oriented sectors such as organic agriculture or renewable energies. In addition, they initiated the HgreeningI of traditional banking products such as socially-responsible or HgreenI investment funds. In this latter sense, the ma"ority of social banking products and services today can be described as conventional banking products and services with a social or ethical HtwistI to them. 3or instance, social banks often let depositors or savers select from a range of sustainably oriented sectors into which the bank then channels the deposited funds or savings. ,imilarly, social banks usually apply positive or negative social and environmental criteria to complement the financial credit risk assessment to rate borrowers, shares or investment pro"ects. *hus, social banks essentially use the range of core banking products and services to intermediate between, on the one hand, those who want to invest their funds so that they achieve a positive impact on the society, the community or the environment, and, on the other hand, those that need funds to realise pro"ects with such a positive impact. /able II highlights some e-amples of products considered characteristic of social banks.

'ne area of products and services where social banks also stand out is that of donations and foundations, which play a much more prominent role in social than in conventional

banking. 3rom the perspective of some social banks, donations and foundations are attractive because they are manifestations of a different way to deal with money, one that is not oriented towards financial return but towards enabling crucial innovations to shape our economy and society in a more sustainable way. )onse!uently, several social banks also offer services like consultation for affluent people who want to support non-profit organi(ations or social businesses to bring about political and social change in society. 2any of the innovative products and services once introduced by social banks have now entered mainstream, and are increasingly popular with both customers and conventional banks. )onventional banks begin to offer products and services labelled as HsustainableI or Hsocially responsibleI as well. *he main Huni!ue selling pointI of social banks therefore is to offer e-clusively sustainable or socially responsible products and services. *his strategy of social banks seems to have served them well. 2ost contemporary social banks have managed to grow steadily for most of their history. *hey thus proved that a different way of banking indeed is possible, one that does not only aim for economic profit but also for a positive social and ecological impact. 4e1 opportunities and challenges for social banks *he above not withstanding, it is also fair to say that, until recently, social banking remained a niche in the shadows of conventional banking without much recognition and impact in the wider world. In 5ermany, the country where contemporary social banking originated almost E? years ago, for instance, social banks still serve less than %D of the adult population. ,/he recent financial crisis and other events resulted in exceptional gro1th rates 5of more than 6789 of several social banks- :lients of conventional banks suddenl# discovered that social banks did not onl# do good but also 1ell-. *his, however, could now change dramatically. *he recent financial crisis, climate change and energy issues might prove decisive for social bankingIs further development. *his crisis and other events resulted in e-ceptional growth rates (of more than L?D) of several social banks. )lients of conventional banks suddenly discovered that social banks did not only do good but also well. *his was supported by the fact that social banking clearly fit nicely into the general trend of more sustainable and conscious lifestyles that have been observed for some time. *hus, the niche for social banks is certainly growing bigger, and social banking might see itself leaving its niche for good. Indeed, several banking industry e-perts state that social banks could reasonably e-pect to increase their outreach from currently less than % per cent to %? or %E per cent in the near future in the :orthern hemisphere (in the ,outh the outreach of social banks is likely to grow even bigger). *his spells new opportunities for social banks, who finally might Ncapitali(eO on their strengths such as their immaculate reputation, their profound e-perience and networks in promising and innovative sectors, and their proven capability to innovate products and services in response to social and environmental problems. 2oreover, based on their long e-perience with open and transparent stakeholder engagement, social banks might benefit more than their conventional peers from the new HsocialI media. As a conse!uence, social banks are likely to increase their outreach and indirect impact way beyond what their limited si(e would suggest. 2oreover, with more and more new deposits coming in, social banks might also increase their direct impact by funding more and larger pro"ects and initiatives that aim to foster sustainability.

9owever, notwithstanding the above opportunities, social banks are not without challenges. Arguably the most obvious challenge for social banks is the need to comply with the manifold economic and regulatory re!uirements whilst not losing sight of their social ideals. *here is no doubt; social banks depend on solid banking e-pertise, professionalism, and strong customer orientation as necessary prere!uisites for long-term success. 9owever, by itself, this is not sufficient. ,ocial banksI customers (and often also their employees and owners) choose their bank not so much for its particular banking e-pertise but because of its promise to pursue a strictly ethical mission. In this situation, credibility is a key aspect, and to stay credible the bankIs overall, internal and e-ternal, business conduct has to be in line with the ethical promises it makes M and with its various stakeholdersI e-pectations. 3or this purpose, almost all social banks follow the three guiding principles of transparency, communication and participation. *his openness clearly re!uires good management. ,ocial banks have to implement and use management principles and management systems to achieve their targets and to manage their business successfully and efficiently. 3urthermore, special guidelines for personnel recruitment, compensation policies and leadership have to be developed and implemented. 9owever, most social banks are still in the process of transforming from social grass roots pro"ects, usually set up by idealistic and unconventional people, to efficient and effective business enterprises. *his makes management and leadership, at times, difficult tasks. And these tasks donIt get any easier when one takes into account that the many new clients of the social banks are likely to come with new value systems and new e-pectations towards the bank and its service. With respect to the latter, a weakness of the social banks also is their still Hlimited range of activitiesI in terms of their products, services and sectors served, as well as their limited pressure to actually prove their social and ecological impact. ,o far, they have en"oyed a small but very loyal customer base, which was happy with receiving core banking services and easily convinced of the positive impact of their bank. *herefore, with their client-base e-panding, social banks, sooner or later will have to e-pand their product portfolio and to prove (and report on) their actual impact more systematically and convincingly.

At the same time, social banks e-perience increasing competition in their own arena from conventional banks starting to discover the promises of sustainability, at least for marketing purposes. And in this conte-t, it must be pointed out, a key strength of social banks today certainly is the current relative Hweakness of their conventional competitorsI in terms of lost trust and damaged reputation. Set, this is a rather ambivalent HstrengthI. And it might not be a sustainable one. With the memories of the recent financial crisis fading, conventional banks are likely to regain some lost ground. And if only some ten thousand clients return to conventional banks, this could have severe conse!uences for the social banks. *hus, social banks seem well advised not to be complacent with a situation that currently seems favourable to them but in fact heavily relies on factors outside their control. In sum, to compete successfully and to use the current opportunity to grow out of their niche for good, ,ocial 7anks will have to professionali(e further and will have to attract and keep suitable staff, with similar values and the relevant professional e-perience and attitude. Whether or not, social banks will actually grab the current opportunity remains to be seen. As of now, social banking seems to be at a cross-road. 2uch will depend on how well social banks can utili(e their e-isting strengths whilst simultaneously working on their Hweak spotsI. /he future of social banks *o increase the social and environmental impact, social banks have to keep on growing. 7ut, to do so, they have to advance their products and services in a way that stresses their social impact and lowers the financial risk for themselves and for their clients. *hey have to broaden their product portfolio to become less dependent on interest rates as most social banks rely on the lending business. 3urthermore, they have to differentiate themselves from conventional banks that start to distribute socially responsible products and services as well. *o achieve a bigger positive impact, social banks will have to focus more on positive impact finance and less on using negative e-clusions criteria to e-clude non-ethical businesses. In order to address new types of clients, social banks have to develop products and services on the one hand, and marketing strategies on the other, that meet the need of these new clients who are interested in finance with an impact. In order to show this impact, social banks will have to develop measures and indicators that demonstrate their positive impact on the society, communities, the environment and sustainable development in an ob"ective and transparent way.

About the authors (laf )eber holds the .-port 4evelopment )anada )hair in .nvironmental 3inance at the ,chool for .nvironment, .nterprise and 4evelopment (,..4), 6niversity of Waterloo, )anada. 1rior to this appointment he was a managing partner and consultant for sustainable banking and head of the ,ustainable 3inance group at the ,wiss 3ederal Institute for *echnology, Turich, ,wit(erland. 4r. WeberIs research interests are in integrating sustainability criteria into the risk management of banks and financial institutions and in concepts and indicators to measure the impact of conventional and social banking on the society. Sven *emer is a 1rofessor for ,ocial 7anking and ,ocial 3inance at the Alanus 6niversity in Alfter, 5ermany, and co-worker at the Institute for ,ocial 7anking in 7ochum, 5ermany. 1rior to this, he worked for several years with K125 as an .nvironmental 2anagement )onsultant and Auditor in 3rankfurt, 5ermany, and as a researcher and lecturer in .ntrepreneurship and 3inance with )ity 6niversity in

8ondon, 6K. 9is research interests span a range from ,ocial 3inance *heories to Impact of :ew H,ocialI 2edia on (,ocial) 7anking and 3inance. 7oth authors are editors of and contributors to the book Social Banks and the Future of Sustainable Finance. *eferences %. Weber, '., F +emer, ,. (.ds.). (>?%%). Social Banks and the Future of Sustainable Finance. 8ondon +outledge. >. 1orter, 2. .., F Kramer, 2. +. (>?%%). )reating ,hared <alue. /arvard Business Revie0, B@(%#>), A>-JJ.