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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.