ISB

Paper Series
Selected Research Papers on Social Banking and Social Finance

No. 9

Competences of Social Bankers

A critical review of a body of knowledge with a proposal to integrate
dilemma management.
by Katharina Beck








Assignment in the Masters Program on Social Banking and Social Finance,
University of Plymouth, September 2011.

Institute for Social Banking | ISB Paper Series, No. 8, October 2011 | www.social-banking.org

About Katharina Beck

Katharina Beck was a co-worker of the Instiute for Social Banking from February 2009 until
November 2011. As director, she had main responsibility for communications, trainings,
strategy and stakeholder management.
Many of you have met her during her time at the Institute. With her knowledge and skills,
her pleasant and charming personality, she was able to get a lot of people informed and
enthusiastic about social banking. If it was at the Summer Schools, expert or introduction
seminars she managed and moderated or at public events where she spoke for the Institute.
During her time with the Institute she joined the Masters Program and was rewarded with
the Certificate in Advanced Professional Studies.

Institute for Social Banking | ISB Paper Series, No. 8, October 2011 | www.social-banking.org

Abstract
This paper critically reviews the body of knowledge regarding the question: What
competences enable social bankers to excellently perform their job? First, a look into
literature of vocational pedagogy and Human Resource Development sharpens the
understanding of what can be understood by the term competence. Subsequently, equipped
with a constructivistic method, the author analyses existing definitions of specific
competences of social bankers. These focus much on values and personal competences of
social bankers. Social banks multidimensional core business and values can lead to dilemma
situations. To cope with these situations, dilemma competence is proposed to be included in
the competence definitions of social bankers on the performance level. Based on literature
of sustainability management, the author develops a concrete decision making process to
deal with dilemmas in the field of social banking.

Institute for Social Banking | ISB Paper Series, No. 8, October 2011 | www.social-banking.org

Competences of social bankers.

A critical review of a body of knowledge with a
proposal to integrate dilemma management.

An assignment within the MA Social Banking and Social Finance

University of Plymouth and Institute for Social Banking
Mode: Critical review of a body of knowledge
Module: The Management of Social Banking and Social Finance
Code: MESB502
Student reference number: 10341221
Submission Date: 30 September 2011

Katharina Beck
Kyffhuserstrae 14
50674 Kln
Germany
katharina.beck@kathabeck.de
0049 176 23 17 57 79

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

!"#$%&'$(

This assignment critically reviews the body of knowledge regarding the question: What
competences enable social bankers to excellently perform their job? First, a look into literature of
vocational pedagogy and Human Resource Development sharpens the understanding of what
can be understood by the term competence. Subsequently, equipped with a constructivistic
method, the author analyses existing definitions of specific competences of social bankers. These
focus much on values and personal competences of social bankers. Social banks multidimensional core business and values can lead to dilemma situations. To cope with these
situations, dilemma competence is proposed to be included in the competence definitions of
social bankers on the performance level. Based on literature of sustainability management, the
author develops a concrete decision making process to deal with dilemmas in the field of social
banking.

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

!
"#$%&!'(!)'*+&*+,!
Image index.................................................................................................................................................... 2!
1! Introduction ............................................................................................................................................ 3!
1.1! Topic................................................................................................................................................. 3!
1.2! Sources and Methodology ............................................................................................................. 4!
1.3! Ethical and other considerations.................................................................................................. 5!
2! Competences........................................................................................................................................... 5!
2.1! Competences in the fields of vocational training and HRD .................................................... 5!
2.2! Constructing a competence definition......................................................................................... 7!
2.3! Intermediary result.......................................................................................................................... 9!
3! Specific competences of social bankers.............................................................................................. 9!
3.1! The context: social banks .............................................................................................................. 9!
3.2! Critical review of existing competence definitions of social bankers ...............................10!
3.2.1! Specific competences: Focus on values .............................................................................11!
3.2.2! Holistic view...........................................................................................................................12!
3.2.3! Focus on individual responsibility ......................................................................................14!
3.3! Dilemma competence ..................................................................................................................14!
3.3.1! Two cases of dilemmas in social banking ..........................................................................15!
3.3.2! The challenge to decide on equally important values ......................................................15!
3.3.3! Proposal for a decision making process in dilemma situations......................................16!
4! Conclusion and outlook ......................................................................................................................17!
5! Bibliography ..........................................................................................................................................18!

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

-.#/&!0*1&2!
Picture 1: Competence cluster by Sloane et al (2004). ............................................................................ 6!
Picture 2: Competence dimensions in a reference model by Schlmer (2009)................................... 7!
Picture 3: Competence dimensions and forms of learning by Arnold & Gonon (2006: 97)............ 7!
Picture 4: The boundary approach of constructing a competence definition by Stoof et al (2002:
353) ........................................................................................................................................................ 8!
Picture 5: "The perfect social banker" (Verhagen 2010) ......................................................................12!
Picture 6: A perfect social banker, designed by co-workers of GLS Bank, Germany .....................13!
Picture 7: Dimensions of existing competence definitions of social bankers. ..................................14!

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

3 -*+4'15)+0'*!
1.1

Topic

Every organisation depends on the individuals who constitute the organisation. The co-workers
knowledge, skills and values essentially contribute to the success of an organisation. This paper
reviews the existing body of knowledge on what makes persons who work in social banks
competent and successful social bankers.
From a macro-economic viewpoint, banks as intermediaries between borrowers and lenders
enable the functioning of the real economy by the efficient allocation of resources. From a
micro-economic viewpoint, private banks, being businesses, work with the business objective to
maximise their profits. Co-workers of a bank, just like in any other organisation, contribute to
achieving the goal of their organisation, which in business is to maximise profits. Overall
commercial competences enable them to do so.
Social banks business objectives explicitly lie not in maximising profits (Scheire and Martelaere
2009). Their goals focus on their role as servants to and enablers of the real economy. They make
use of their unique role as allocators of money with the aim to further the common good
(Institute for Social Banking 2011). Social banks (also called ethical, values-based, green,
sustainable or mission-driven banks) do not have one measurable goal (more profit), but
base their activities on the triple bottom line of people, planet and profit. Social bankers, like coworkers in general, need to contribute to achieving the goals of their organisation. As the goals of
social banks are different from conventional (banking) business, social bankers are assumed to
need specific competences to perform their job properly, in addition to their banking and
financial know-how (Cabarrubia 2010; Khn 2005).
What are the (specific) competences of a social banker?
I work at the Institute for Social Banking (ISB), an organisation whose mission is to inspire and
train persons for social banking. We conduct seminars, workshops, lectures, trainings and a
summer school on social banking. To generate more knowledge from practice and to reflect on
this practice, we have also developed the MA Social Banking and Social Finance. As a basis for
the design of our offers we have taken and developed several assumptions and views on social
banking specific competences. Most of these are based on practical experiences of closely
related persons to social banking and finance, including the founder of the institute and the co3

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

workers of the ISB (including myself). However, since the foundation of the institute there hasnt
been a review on what others and we at the ISB understand as competencies for social bankers.
So, with this paper I intend to reflect on and further develop my / our own understanding of
competences of social bankers.
The relevance of the question is closely connected to practice: social banks are growing quickly in
terms of balance sheet and number of co-workers. The need for training on social banking
specific competences increases as many new co-workers come from conventional banks who
need to learn about social banking to ensure that they are able to contribute to the multidimensional goals of their values-based company (Cabarrubia 2009).

1.2 Sources and Methodology

This paper is written in the mode of a critical review of a body of knowledge within the MA
Social Banking and Social Finance. This programmes method is practice/ action research.
Roughly spoken, in practice research, sources in a body of knowledge may include any relevant
information from practice if used in a reflective manner (Moser 2003). So, in addition to
reviewing published literature on the research question, amongst others also internal files,
(unpublished) texts, power point presentations and interpersonal talks (narrative interviews)
may serve as a basis for this paper. Another special aspect is the reflection on and further
development of on own job-related experiences, papers and thoughts.
How is the topic approached logically?
At first, the term competence(s) needs to be clarified and/or explained (chapter 2.1). As there
is no one and only definition of competence, I present the boundary approach of competence
that in my view can enable a sharper view on the existing descriptions of competences for social
bankers (chapter 2.2).
Secondly, I look at specific characteristics of social banks (chapter 3.1). Thirdly, equipped with
the boundary approach of competence, I review and critically reflect upon existing definitions
on the specific competences for social bankers (chapter 3.2). As there is no academic literature on
this topic, this includes working papers of the ISB, power point presentations and oral and
written communication with persons within the social banking sector.
Finally, I propose to broaden the definitions of competences of social bankers by integrating
dilemma management. I develop a concrete process of how to deal with dilemma situations
(chapter 3.3).

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

1.3 Ethical and other considerations

I include views and opinions in this paper that resulted of personal talks or emails. The authors
of these opinions were informed about my research interest before they gave me their answers
and they consented that I may cite and use their opinions.
I critically reflect on the working practices of my own employer. In a situation of economic
dependence, one might hesitate to objectively criticise. However, as the ISB is a training and
research institution actively fostering critical reflection, I did not feel biased in my evaluation of
the existing ISB approaches to competences of social bankers.
I have a look at my own working practices, what in conventional research is uncommon as I mix
my roles as researcher and as research object. However, this lies in the very nature of action and
practice research. I try to maintain a conscious balance between my two roles. In addition, I am
aware that I am not a social banker or practitioner myself, and therefore have only intermediate
information on the every-day working practices of social bankers.1

6 7'.8&+&*)&,!
Competence is a term used in many ways in every-day and professional life usually without
reflecting on how we use it. It is important to detect individual views and underlying assumptions
on the term competence (Stoof et al 2002). Imagine a competent teacher, a competent banker or
a competent sailor. To me, competence in all three cases means to be able to excellently
perform a job. The specific competences themselves though differ depending on the job
situation. Competence can also refer to a status or an allowance, e.g. to have an externally
attributed competence to decide something.

2.1 Competences in the fields of vocational training and HRD

My basic understanding and working definition of competence for this paper is the ability to
excellently perform a job (more specifically: what does it take to excellently do social banking?).
As the research question is related to job-specific competences, we can narrow down the
literature scope to the fields of vocational education / training / pedagogy and Human Resource
Development (HRD). Reviewing textbooks in these fields (Arnold & Gonon 2006; Huisinga &
Lisop 1999; Sloane et al 2004; Swanson & Holton 2009)2, the following picture can be drawn:
In the course of this paper, the 1st person plural is used for a meta-perspective on the assignment. When I use the
person singular, I refer to my own thoughts and activities that contribute to the content of the assignment.
2 The content of the following paragraphs is based on these sources if not otherwise indicated.
1

1st

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

Within the last two decades, competences have become an integral and central part of the general
language in vocational education. They have often been integrated in the development of
trainings and other HRD activities. Lists, schemes and dimensions of competences and,
connected to these, certificates for competences, have become very popular.
That competence means an ability to perform well in a job is a tacit agreement in literature.
However, beyond this understanding, there is no clear definition of competence. Boundaries of
its meaning blur when comparing it with other terms like expertise, qualification or capabilities.
Arnold and Gonon (2006: 96-98), for example, see an increasing overlap between the terms
competence and qualification within the last 20 years. Earlier, competence had been associated
rather with subjective complex abilities of the individual, qualification as the ability to conduct a
task in a satisfying way. Today, in Arnold and Gonons view, the term competence is used for
both: individual personal competences and task-specific competences. These then lead a person
to excellently perform her3 job.
Competence definitions today have an overarching character. A common view is to see them as a
combination of knowledge, skills and values/attitude (e.g. Perry 1995 in Stoof et al 2002: 347).
Another possibility to conceptualise competence is by dimensions. These often include jobspecific/functional/professional, methodological, communicational, social and/or selfmanagement competences4 (Figures 1-3 show different models and ways to present dimensions
of competence). These dimensions serve as a basis to then list specific competences inside each
dimension.

Picture 1: Competence cluster by Sloane et al (2004).

3
4

I use the female pronoun only, the male pronoun should be read as implicit.
Many other names for dimensions can be found, e.g. language comptence, ethical competence,

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

Picture 2: Competence dimensions in a reference model by Schlmer (2009).

Picture 3: Competence dimensions and forms of learning by Arnold & Gonon (2006: 97).

Available schemes, lists and tables to define competences are so manifold that some already
speak of an inflationary use of competence dimensions (Sloane et al 2003: 163). Arnold (in
Huisinga & Lisop 1999: 94) questions the strengths of the term competence for vocational
pedagogy and is interested if competence is only a nice metaphore (Wrmemetapher) or really
an analytical category.

2.2 Constructing a competence definition

Our understanding of competence to be able to excellently perform a job has not been
disproved. But exploring competence definitions in the field of vocational pedagogy and HRD
has not led to objective clarification of how to further conceptualise competence.
This goes hand in hand with the observation of Stoof at al (2002: 347) who argue that the one
and only true competence definition does not exist nor will ever be found. Maybe it is so hard
to clearly define what competences are because they are complex constructs and not
objectively observable concrete actions. The problem might lie in the objectivist claim itself, to
find the one and only true definition.

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

Constructivism can help here (de Haan & Rlcker 2009; Stoof et al 2002; Kraker et al 2007).
From a constructivistic perspective, it is not the final goal to find the one and only true
definition of a term, but that the definition should be viable5 and adequate for the context in
which it is being used (Stoof at al 2002: 347). In addition to the general advantage of this
pragmatic approach not to get stuck in discussions on the wording of definitions, the goal of
practical viability goes hand in hand with the practitioner relevance that this paper aims to have.
Stoof et al (2002) propose a methodology to construct ones own competence definition, and in
my opinion, it can serve to sharpen ones eyes on existing competence definitions as well.
Therefore, parts of their approach can help to better analyse the body of knowledge on the
competences of social bankers (see chapter 3.2).
At first, Stoof at al (2002) propose to analyse the situation: Who are the persons who design the
definition (people), what is the definition going to be used for (goal) and what are the
characteristics of the organisation in which the definition is going to be used in (context).
After this, they introduce the boundary approach of competence (see figure 4), a method to be
flexible about the boundaries of ones competence definition.

Picture 4: The boundary approach of constructing a competence definition by Stoof et al (2002: 353)

A definition of competence is defined from inside-out reflecting on several bi-polar

dimensions of competences.
1. Is it a personal competence or a task-specific competence?
2. Is it a competence needed for a single individual or for a team / a group of people
(distributed cognition (Salomon 1993 in Stoof et al 2002: 354) and systems thinking
(Senge 1990 in Stoof et al 2002: 355))?
5

The term viability is taken from von Glaserfeld (1995) in Stoof et al (2002: 347).

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

3. Is it a specific/crucial (for a specific function) or a general/universal competence (within

an entire domain or profession)?
4. Do we understand competence as different levels (e.g. from novice to expert) or as a level
itself?
5. Do we assume the competences to be teachable or not teachable? (Knowledge and skills
are often regarded as teachable, values and attitudes not (Parry 2006 and Spencer &
Spencer 1993 in Stoof et al 2002: 356))
In the outside-in approach, Stoof et al (2002: 357-361) illustrate how to sharpen the
terminological hygiene of competence, by presenting concrete examples which unravel
intuitive understandings of competence and related terms like performance, qualification,
capability, ability, knowledge, skills and attitudes, and expertise.
It is then the task to use the ingredients of both approaches to define competence. As this might
result in reviewing earlier assumptions and in further discussions, the exercise of defining
competence can also be considered as a process of increasing awareness (Stoof et al 2002: 362).

2.3 Intermediary result

With the constructivist perspective on competences, we have gained flexibility to look at existing
views on competences for social bankers openly and do not depend on a one and only definition
of competence. We accept that boundaries of competence definitions might be blurry.
Constructing a competence definition is a matter of choices. (Stoof et al 2002: 361) We have
chosen to understand competence as the abilities to excellently perform a job and that we do
not want to get stuck in discussions about the right competence definition. Therefore, we can
also use words like knowledge, ability, capabilities, skills or expertise if they help to answer our
research question. We know that definitions of competence can be composed by several
dimensions (such as professional, methodological, social, self competences) and by knowledge,
skills and values. With the boundary approach of competence, we have a structured methodology
to sharpen our review on existing competence definitions of social bankers.

9 :8&)0(0)!)'.8&+&*)&,!'(!,')0#%!$#*;&4,!
3.1 The context: social banks
Before we apply our sharpened competence lens on the existing definitions of specific
competences of social bankers, we need to remind ourselves of the specific job-environment in
9

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

which social bankers work: social banks. In Europe, in nearly every country there is a social bank6
or socially oriented financial service provider7. Even though each of these banks has their own
unique mission and history, there are several common denominators of social banks.
They are values-driven (De Clerck 2009) organisations with the aim to further the common
good (Institute for Social Banking 2011). The motivation to support participatory, ecological,
social or cultural projects in society drives them. Already the slogans of these banks imply their
mission-driven self-perception: Todays bank for a better tomorrow (Alternative Bank
Switzerland), The highest interest is for all (Banca Etica, Italy) or A different bank for people
who want a different world (Charity Bank, UK).
As businesses, social banks need to generate income, but maximising profits is not the goal of a
social bank (Scheire & Martelaere 2009). Their explicit focus is on the impact they have on the
real economy (what is financed). With positive and negative criteria they select projects and
investments in the social and ecological domains. Most social banks transparently publish where
they invest their customers money. This goes along with their value to be in an open dialogue
with all their stakeholders.
Social banks are committed to the triple bottom line of people, planet, profit (GABV 2011)
and clearly connected to the concept of sustainable development or sustainability8, with its typical
three pillars: the social-cultural, ecological and economical dimension. The core business of social
banks therefore is multi-dimensional, pursuing multiple goals.
What competences does it take to work in a bank committed to sustainability? What do the
existing definitions of competences of social bankers say?

3.2 Critical review of existing competence definitions of social bankers

Following Stoof et als (2002) approach the first questions to answer when looking at
competence definitions are: Who defined the definition (people), for what goal and for which
context?9
As mentioned in the introduction, social banking can also be called sustainable, ethical, values-based or missiondriven banking. With the term social banking, we embrace all these meanings.
7 Social banks or socially oriented financial service providers in Europe (in alphabetical order; members of the
Institute for Social Banking): Alternative Bank Schweiz (Switzerland), Banca Etica (Italy), Charity Bank (United
Kingdom), Clann Credo (Ireland), Cultura Bank (Norway), Ecology Building Society (UK), Ekobanken (Sweden),
GLS Bank (Germany), GLS Treuhand (Germany), Hannoversche Kassen (Germany), La NEF (France), Merkur
Bank (Denmark), Triodos Bank (The Netherlands, Belgium, UK, Spain, Germany).
8 Sustainable development and sustainability are used synonymously in this paper. We are aware that
sustainability in conventional banking often refers to long-term economic sustainability (i.e. financial returns) only.
However, this is not how sustainability is understood in social banking.
9 The following overview does not aim to be complete, but mirrors what I have come across in my job.
6

10

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

Some individual co-workers of social banks, HR departments of social banks and the Institute for
Social Banking have to my knowledge so far developed explicit views on the specific
competences of social bankers (Cabarrubia 2009; Verhagen 2010; Khn 2006; Institute for Social
Banking 2007; Beck 2010; Kufer and Beck 2011). The goals of these definitions were connected
to create learning environments for co-workers of social banks, e.g. with the aim to develop the
human capabilities to deliver sustainable banking (GABV 2011a). The definitions have been
used in different contexts. First, within the social banks themselves, second, within the trainings
and offers of the Institute for Social Banking, for example.

3.2.1 Specific competences: Focus on values

A general understanding of the competence of a social banker is that it is a mixture of
1. Banking skills and
2. Ethical know-how / values (Cabarrubia 2009).
This is also reflected in the training activities that social banks offer. In 2010, I conducted a study
on the HR activities of the member banks of the Global Alliance for Banking on Values
(GABV). A general result was that trainings focus on banking techniques, and in addition, the
social banks HR departments offer seminars on the values, the mission and/or the roots and
history of their organisation, or on ethics in general (Beck 2010a). The HR managers expressed
the need to get into dialogue with each other about what makes a social banker a competent
social banker. So, the question of the profile of the perfect social banker apparently still
remains open, but the assumption in each bank is that the specific competences of a social
banker (those needed in addition to normal banking techniques) are connected to the specific
values of their organisation.
When the MA Social Banking and Social Finance, the first official programme worldwide to train
social bankers, was developed, values played an essential role as well:
Managers and employees in th[e] field [of social banking] should have sound
knowledge of conventional finance but also be able to further develop service
providers and organisations in the financial sector on the basis of autonomously
developed values. (Institute for Social Banking 2011a)
This focus on values and the mission of social banks is also mirrored in the specific
competences for co-workers in social banking which the founder of the ISB, Khn, developed
in 2006:
!

Ability to listen and an interest for the customers and for the world

Entrepreneurial self-reliance concerning content, project management and the

biographical working situation
11

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

Communication and team competence

Values Competence (Ability to formulate values, to form an own opinion, and a
participation in public networks) (Khn 2006: 1)
Taking a dimensions approach, Khn then diversifies the competencies of a social banker into
professional, methodological, social and self competences. The concrete competences listed
below these categories focus on knowledge on social banking specific topics and the values and
basic human characteristics of a social banker (e.g. knowledge of Weltanschauungen and
philosophical backgrounds of social banking, ability to conduct a dialogue on values, empathy,
ability to trust and to receive trust) (Khn 2006: 1-2).

3.2.2 Holistic view

Interpreting Khn, being a social banker does not only mean to be committed to values, but also
to bring in oneself as a whole human being. This holistic approach is mirrored in the following
picture (picture 5), designed by Els Verhagen (2010), HR Manager of Triodos Bank. Her perfect
social banker performs her job entirely, with head, heart and hand.

Picture 5: "The perfect social banker" (Verhagen 2010)

As well Francisco Cabarrubia (2009), head of the Zurich branch of Alternative Bank Switzerland
(ABS), says that a values-based bank needs co-workers who
Have an intrinsic motivation (personal values and goals)
Are values-based / can identify with the organisational culture (social-ecological goals
before profit)
Have a conscious behaviour and reflection of values
Do not only pursue monetary goals.

12

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

Amongst others, ABS demands of its co-workers a strong ecological interest. In practice, this
might include that a person is expected to set value on a low carbon mobility also in personal life
(Cabarrubia 2009: 13-15).
In my own trainings with co-workers of a social bank, I ask participants to design their own
perfect social banker and/or to list the competences a social banker should have (see picture
6).

Picture 6: A perfect social banker, designed by co-workers of GLS Bank, Germany

The results are similar. A social banker e.g. eats organically, wears organic cloths, reflects on
the meaning of money, has a vision of a better world. I sometimes call social bankers super
bankers (Beck 2011) who combine the technical banking know-how with a save the world
ambition, knowledge on eco-social topics and great abstraction competences.
Using the five dimensions of the inside-out approach of Stoof et al, the existing definitions of
competences of social bankers have the following characteristics (see picture 7):
1. Very personal (vs. task-specific)
2. The whole group / team needs to have the competence (vs. a single individual)
3. It is a universal competence within the entire domain or profession (vs. for a specific
function)
4. The competence has to be present on different levels (vs. being one stage in the course of a
development)

13

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

5. If these competences are teachable has not been topic of most of these definitions. Most
scholars assume that formally teaching values is hardly possible (Stoof et al 2002).
However, the training offers of the Institute for Social Banking try to do exactly this.

Picture 7: Dimensions of existing competence definitions of social bankers.

3.2.3 Focus on individual responsibility

Not only a holistic view on the social banker is a unifying aspect of these competence definitions,
but also that the competences of social banking are very much connected to individual
responsibility (dimension 1 in Stoof et als scheme). This view seems to be common in concepts
of competences for sustainability in general. For example, the Sustainability Balanced Scorecard
or the Sustainable Excellence Concept both focus on an active and self-responsible role of the
individuals in the organisation (Schlmer 2009: 51). This goes hand in hand with the
understanding at the ISB that training competences for social bankers needs to take into account
the personal reflection of each professional, an essential methodological part in the MA Social
Banking and Social Finance and the Certificate in Social Banking (Institute for Social Banking
2011b: 6). Both make participants critically reflect on their own working environment, including
themselves as a person, and take a self-responsible attitude towards their work.

3.3 Dilemma competence

The definitions of specific competences of social bankers focus on the subjective complex
abilities of the individual and not so much on the task or performance related competences
(Arnold and Gonon 2006). But what das it mean in concrete decision making situations to be
values competent?

14

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

3.3.1 Two cases of dilemmas in social banking

In 2010, two social bankers within the MA programme led an Open Space session10 with the
question where to draw the line? Their bank had to decide whether to finance new solar plants
of an energy company that at the same time still generated a small percentage of their energy
from nuclear power. Nuclear power is on the negative list of their bank, solar plants on the
positive list. Should they finance the increase in power generated by renewable energies or should
they refuse to finance a company at all that is involved with nuclear energy (even though with a
clear strategy to reduce this percentage)? The dilemma in this case even has two levels: the
decision-makers have to decide whether it is more important to foster renewable energies or to
stick to once set rules regarding nuclear power (both on the values / eco-social dimension); the
economic interest of a bank to finance the project conflicts with the socio-ecological hazard to
finance nuclear energy. Which value weighs heavier?
Or what about financing an organic wine farm (also a real example)? Alcohol, due to the (social)
danger of addiction, is on the negative list of most social banks, whereas supporting organic
agriculture is one of the (ecological) branches in which social banks engage. The economic
situation would favour financing the project. Is it more important to stick to the negative (social)
criterion or to foster organic agriculture (ecological)?

3.3.2 The challenge to decide on equally important values

The triple bottom line of social banks can apparently lead to dilemma situations where the three
dimensions are not in harmony, but in conflict. A dilemma situation occurs when a choice has
to be made between at least two equally important and contrary alternative actions (Neuberger
2002 in Ehnert et al 2006: 358-359). One can either decide for A or for B. Dilemma situations are
crucial in sustainable businesses in general. According to Schaltegger et al (2007: 17), to integrate
the different dimensions is the largest challenge for enterprises that incorporate sustainability
into their management.
Dilemmas could be eliminated by a clear top-down prioritisation of the different values of social
banks. However, establishing a one-size-fits-all hierarchy seems to be impossible. On the one
hand, the mission statements and communications of social banks imply that their cultural-social
and/or ecological goals are more important than the economic dimension. On the other hand, as
businesses, social banks need to work economically efficient as well being unable to exist if they
dont. Also the ecological and the social dimensions sometimes conflict.
As the MA aims at integrating the knowledge of its participants, we work with interactive methods like the Open
Space method in which participants can spontaneously propose own workshop topics.

10

15

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

3.3.3 Proposal for a decision making process in dilemma situations

How to constructively deal with dilemmas? According to Mller-Christ (2009) and Ehnert et al
(2006), one of the most important steps is, as undemanding as it sounds, acknowledging that
there is a dilemma. They observe that often in sustainability contexts, dilemma situations are
simply negated. Or they are taken to levels of abstraction where conflicting values are regarded as
complementary or as win-win-win-situations (even though they are not). If ignored, dilemmas
can become destructive as decisions in dilemma situations always lead to trade-offs (If I decide in
favour of A, I decide against B and vice versa).
A competent dilemma manager therefore needs to be able to emotionally baer the pain of
cognitive dissonance that a dilemma brings (Mller-Christ 2009: 25), a competence that can be
called tolerance for ambiguity or tolerance for ambivalence (Mller-Christ 2009: 22). With
this tolerant mind-set, the dilemma manager then can try to constructively work with the tension
and complexity. This can include developing transparent decision making processes, for example
guided by the questions: What were the arguments for value A, what were the arguments for
value B? Why did we/I think that in the current circumstances the decision has to be made in
favour of A/B?
The decision making process in a dilemma situation could, in my opinion11, look as follows:
1. Identifying and accepting the dilemma (e.g. alcohol vs. organic farming).
2. Bearing it.
3. If the decision is taken in a group, designing a transparent decision making process
(clarifying who has the right to take a decision and why)
4. Collecting arguments and values for and against both options, based on the organisations
and the individuals criteria and guidelines.
5. Constructively weighing the values and trade-offs involved.
6. Making a decision.
7. Transparently communicating about the process that led to the decision (including
arguments involved for both options and a comprehensive argumentation why the
decision has to be taken in favour of one of them).
With this transparent process the risk of dilemmas becoming destructive is reduced as both
options are respected and decisions are taken in a comprehensive way.

I have developed this process based on reflections on various conversations I had with social bankers and on
Ehnert et al (2009), Mller-Christ (2009).

11

16

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

< 7'*)%5,0'*!#*1!'5+%'';!
My research question was to find out what makes a social banker able to excellently perform her
job. Reviewing definitions of competences of social bankers, a social banker needs to have
technical banking skills and ethical/values competences. The specific competences (the
ethical/values competences) focus much on the whole person of a social banker. They are
assumed to be valid for the whole group of social bankers and to be universal (not task-specific).
Derived from the multiple core businesses of social banks and exemplary shown with two cases,
I have detected that a specific task of social bankers is to decide in dilemma situations. Therefore,
I have introduced a process of how to decide in cases of a dilemma, which could broaden the
existing competence definitions that focus on the subjective complex abilities, by a more
performance-related competence.
In my eyes, two questions remain open:
First, how can the social banking specific competences be trained? I could not deepen this
question within this paper, but to train values and subjective complex competences is regarded to
be a challenge. This is also seen in practice. According to Alexander Schwedeler, member of the
board of Triodos Bank, Germany, it is harder to train the values-part that social bankers need
for their job, than training the banking techniques to a non-banker with the right values-set
(personal conversation). Some of the methods we already use in the trainings at the Institute for
Social Banking shall inspire to sharpen an opinion and build values competence. We have often
stayed on an abstract level and not explicitly applied these to concrete performance levels,
though. My proposal for a performance-related training is to work with specific dilemma cases
and go through the process of dilemma management. Social bankers would be encouraged to
transparently reflect on a concrete decision, on the underlying assumptions and values and to get
into dialogue with each other about the multi-dimensionality of their organisations and about
each persons individual values. Another next step could be to analyse and compare the existing
values trainings that the social banks conduct in-house.
Secondly, are the social banking specific competences really applicable to all social bankers? A
general identification with the organisations values is probably relevant for all co-workers. But
when we get closer to the performance level: What about specific social banking competences for
specific departments? Those social banks that are growing quickly are developing more
specialised departments. To offer professional financial services, they today hire more specialists
than generalists as new co-workers. A more detailed look at social banking competences for
specific departments might be needed.
17

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

= >0$%0'/4#8?@!
Arnold, R., Gonon, P. (2006) Einfhrung in die Berufspdagogik.
Beck, K. (2010) Competencies for Social Banking. In: Vandemeulebrouke, V., Kufer, K., Beck, K. (2010)
Networking Social Finance http://www.social-banking.org/research/literature-articles/ [accessed
15 September 2011].
Beck, K. (2010a) Final report GABV HC study, unpublished report to the Steering Committee of the
Global Alliance for Banking on Values.
Beck, K. (2011) Meine neue Rolle als Social Banker. Wer bin ich jetzt eigentlich? Unpublished power point
presentation.
Forschungskonzept Nachhaltiges Management (2011), University of Bremen http://www.wiwi.unibremen.de/gmc/forschung/fkonzept.htm [accessed 15 September 2011].
De Clerck, F. (2009) Ethical banking, http://www.social-banking.org/research/literature-articles/ [accessed
27 September 2011].
De Haan, G., Rlcker, T. (2009) Der Konstruktivismus als Grundlage fr die Pdagogik, Berliner Beitrge zur
Pdagogik, Band 7.
Ehnert, I., Arndt, L., Mueller-Christ, G. (2006) A sustainable management framework for dilemma and boundaries
in autonomous cooperating transport logistics processes. In: International Journal of Environment and
Sustainable Management, 5 (4), 2006.
GABV (2011), About us http://www.gabv.org/AboutUs/ [accessed 04 September 2011]
GABV (2011a), Developing Human Capital http://gabv.org/AboutUs/GABVsGoal/developing-humancapital.htm [accessed 04 September 2011]
Institute for Social Banking (2007) Entwurf: GLS Kompetenz- & Aus-/Fortbildungs-Matrix unpublished
working paper.
Institute for Social Banking (2011) Our definition of Social Banking, http://www.social-banking.org/theinstitute/what-is-social-banking/ [accessed 03 August 2011].
Institute for Social Banking (2011a) MA Social Banking and Social Finance. The Course http://www.socialbanking.org/masters/the-course/ [accessed 03 August 2011].
Institute for Social Banking (2011b) Certificate in Social Banking. Course 2011/2012. Broshure at
http://www.social-banking.org/certificate/ [accessed 03 August 2011].

18

Competences of social bankers. A critical review of a body of knowledge with a proposal to integrate dilemma management.
Katharina Beck

Cabarrubia, F. (2009) Erkenntnisse und Methoden zur Ermittlung der speziellen Anforderungen an Social Banker,
unpublished research paper within the MA Social Banking and Social Finance.
Kufer, K., Beck, K. (2011) GABV Human Capital Action Track unpublished presentation.
Kraker, J. de, Lansu, A., and Dam-Mieras, R. van (2007) Competences and competence-based learning for
sustainable development. In: Kraker, J. de, Lansu, A., and Dam-Mieras, R. van (Eds.) (2007) Crossing
Boundaries. Innovative Learning for Sustainable Development in Higher Education.
Khn, J. (2006) Besondere Fhigkeiten fr fr MitarbeiterInnen in Social Banking, unpublished paper for the
Institute for Social Banking Training and Research.
Moser, H. (2003) Instrumentenkoffer fr die Praxisforschung.
Mller-Christ, G. (2008) Expertise: Widerspruchmanagement und Nachhaltigkeitsentscheidungen, SCB
Werkstattberichte Nr. 5.
Husinga, R., Lisop, I. (1999) Wirtschaftspdagogik.
Verhagen, E. (2010), Values driven human resource management, speech at the 3rd International Summer School
on Social Banking, unpublished presentation.
Sloane, P.F.E., Twardy, M., Buschfeld, D. (2004), Einfhrung in die Wirtschaftspdagogik.
Stoof, A., Martens, R. L., Van Merrinboer, J.J.G., and Bastiaens, T.J. (2002), The boundary approach of
competence: A constructivist aid for understanding and using the concept of competence. Human Resource
Development Review, 1: 345-365.
Scheire, C., de Maertelaere, S. (2009) Banking to make a difference. A preliminary research paper on the
business models of the founding member banks of the Global Alliance for Banking on Values,
http://www.social-banking.org/research/literature-articles/ [accessed 27 September 2011].
Schlmer, T. (2009) Berufliches Handeln und Kompetenzen fr Nachhaltiges Wirtschaften. Ein referenzmodell aud der
Grundlage theoretischer und empirischer Explorationen Schriften zur Berufs- und Wirtschaftspdagogik,
Band 6.

Swanson, R. A., Holton, E. F. (2009) Foundations of Human Resource Development.

19