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spotlight on what did not go as planned allows for an in-depth  Conclusion
          analysis of what to do better next time and, on the other, allows  Sustainability challenges of today can only be addressed if
          one to take note of negative results.              employees start believing in their power to transform the
            The prize awarded to the three winners was in line with the  company. Leadership support and the sense of psycholog-
          spirit of the “My Best Failure” programme itself: each person  ical safety are crucial to such empowerment. Empowerment
          had a chance to enrich his/her career by spending time in  HQDEOHV  HPSOR\HHV  WR  WDNH  RZQHUVKLS  RI  GLIÀFXOW  VXVWDLQ-
          another company unit of own choice or in one of the start-  ability challenges thereby making both our businesses and
          ups that collaborate with Enel.                    our world a better place.

          The important role of psychological safety         About the Authors
          In the 1990s, William Kahn, Professor of Organisational      CB Bhattacharya is the H.J. Zoffer Chair in
          Behaviour at Boston University, introduced the term engage-  Sustainability and Ethics at the Katz Graduate
          ment based on his observation that people have a choice as   School of Business, University of Pittsburgh.
          to how much of themselves they are willing to invest in their  He founded and directs the Centre for
          jobs. Kahn conducted in-depth interviews with employees      Sustainable Business at ESMT Berlin, Germany.
          at two organisations. He discovered that employees were  He is a world-renowned expert in business strategy innova-
          much engaged both emotionally and physically, when they  tion aimed at increasing business and social value.
          experienced psychological safety: a feeling they were valued,  Ernesto Ciorra joined Enel in October 2014 as
          accepted, and respected – and able to perform in a positive  D &KLHI ,QQRYDELOLW\ 2IÀFHU  +H JUDGXDWHG IURP
          work environment (Kahn 1990). 8                              Bocconi University. He is also a founder of Ars
            As with Enel, celebrating failure and encouraging innova-  HW ,QYHQWLR  D FRQVXOWLQJ ÀUP IRFXVVHG RQ LQQR-
          tion at companies can aid employee engagement, because it    vation and creativity. He has supported many
          contributes to the feeling of psychological safety and avail-  companies with designing and launching innovative products
          ability. What is really going on is courage enhancement. By  and services that have become popular worldwide.
          creating an atmosphere of safety and reducing the pressure   Joanna Radeke  is a sustainability/ corporate
          WR  VXFFHHG   HPSOR\HHV  IHHO  FRQÀGHQW  WR  VKDUH  WKHLU  LGHDV   responsibility researcher. She manages the
          Employees who once felt inhibited suddenly feel free to      Centre for Sustainable Business (CSB) at ESMT
          express their thoughts, frequently contributing to the innova-  Berlin, Germany and its network of the
          tions that drive the company.                                Sustainable Business Roundtable (SBRT)
            In progressive companies, where failure and innovation  member companies. She works with companies to help them
          are encouraged and emphatic, failure-tolerant leaders are  increase value from their sustainability investments.
          developed, such leaders have closer ties with their employees
                              9
          (Farson and Keyes 2002).  Failure-tolerant leaders try to break  References
                                                             1. Porter, Michael E. and Kramer, Mark R. (2011). Creating Shared Value. Harvard Business Review
          down barriers that separate them from their followers. They  January-February 2011.
                                                             2. Freeman, R. Edward. (2017). The New Story of Business: Towards a More Responsible
          engage at a personal level with the people they lead. This  Capitalism. Business and Society Review 122 (3): 449-465.
                                                             3. Moorhead, John and Nixon, Tom. (2016). Global 500 Greenhouse Gases Performance 2010-
          FRQWULEXWHV WR D KLJKHU VHQVH RI VHOI HIÀFDF\ LQ HPSOR\HHV   2015. Thomson Reuters June 2016.
                                                             4. CDP (2016). Thirsty business: Why water is vital to climate action. CDP 2016 Annual Report of
          Employees in such companies are not afraid of being them-  Corporate Water Disclosure.
          selves at work and they do not feel they need to check their  5. Ibid.
                                                             6. Bhattacharya, CB and Polman, Paul. (2017). Sustainability Lessons from the Front Lines.
          personal moral code at the door. In addition, employees are  Sloan Management Review 58 (2): 71-78.
                                                             7. Polman, Paul and Bhattacharya, CB. (2016). Engaging Employees to Create a Sustainable
          encouraged to collaborate with outside actors, such as univer-  Business. Stanford Social Innovation Review 14 (4): 34-39.
                                                             8. Kahn, William A. (1990). Psychological Conditions of Personal Engagement and
          sities or even other companies. This helps employees connect  Disengagement at Work. Academy of Management Journal 33 (4): 692-724.
                                                             9. Farson, Richard and Keyes, Ralph (2002). The Failure-Tolerant Leader. Harvard Business Review
          to that all-important sense of a higher purpose.    August 2002.
         Sustainability challenges of today can only be
         addressed if employees start believing in their

         power to transform the company.
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