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Think about money differently. Be conscious of what you get paid, why it’s being paid, ensure payment to others is fair and support businesses where this happens.

You’re not getting paid enough, or are you? Why is your paycheque what it is? How did that amount get determined? Who decided what your work is worth?

Sustainability is about people, profit and the planet. We often default to thinking about the environment when we hear the term sustainability but it’s also about people. It’s about fairness and equality and social justice. Companies are made up of people, people who come together in a system, make decisions, carry out actions and, who can be influenced. A firm is not some inanimate box. There are those in business who will only look out for themselves and we have created systems that allow this (there is some fascinating research about the level of psychopathy in executives being double that of the general population, but I digress…). We as a society have allowed these systems to perpetuate and we as a society can change these systems to make them more fair.

People always ask me why I love numbers so much but it’s not the numbers I love, it’s the stories the numbers tell. With all the talk lately about the gender pay gap and controversies about executive compensation I’m fascinated by how pay gets determined. This tells us a lot about the society we live in and what we value. What does it say when the pay we provide someone who works forty hours a week isn’t enough for food, rent and other necessities? What does it say when we pay someone to prioritize a company’s profit over its’ people and the world we live in?

What justifies pay levels?

There are a variety of things that determine what you get paid including what the job is as well as who you are. We know for example that pay gaps exist even amongst two people where the job is the same and the person is equally qualified. What does this tell us? Research tells us we ‘value’ men and women differently as we do minorities or anyone who is different from the majority. What we pay people tells us a lot about who we are.

There are different arguments put forth justifying levels of pay. When pay is high, it is often argued that the individual provides a rare skill set, perhaps a unique athletic talent; it could be that the person went to school for many years acquiring knowledge that is difficult to find or works more hours than most. It is also argued that an individual may have an ability to create economic value or profit for a company that is far greater than the amount paid to them and this justifies the pay level. Or perhaps the work is particularly difficult or undesirable and therefore requires higher levels of pay. Some argue that if two parties have agreed to a pay level it is of no-one else’s concern. But what if it is not just between those two parties? What if it is indicative of larger issues in society?

Executives of large companies are among the highest paid in our society. Many questions continue to be asked about why this is the case. Typically, the justification from the firm for executive pay goes something like this: we pay for performance. But, what is performance? You might think this is straight-forward but the discussions around this are actually quite lengthy. If a company loses money should the executives get a bonus? You might say no but they frequently do receive bonuses even when they lose money. There is often discussion of needing to retain the executives or the extenuating circumstances that support providing a bonus in these cases. What if the company made money but paid its workers less than they need to live on or did so by polluting the environment? Does this qualify as ‘performance’? And where is the limit? Much has been written about the rise in executive compensation over the last 50 years. A CEO in the 70’s received about 30 times the average worker’s salary; today, it has risen to about 300 times. The share of income going to the top earners has risen dramatically in this time. What justifies this shift? How much is too much? Where is the limit?

What can you do?

If you think of the amount of money in society as being a fixed amount, how it gets distributed is important. Compensation decisions affect our quality of life. The amount of money we make affects how much money we have to live on, to spend on discretionary items, to give to others, to raise our children and provide them with opportunities. Effort and skill should be rewarded, and this does lead to unequal distribution but, in fact, people prefer to live in societies that are unequal but not in societies that are unfair. As a society we need to clearly think about the upper and lower limits we are willing to accept and understand what this says about what we value.

If you are in a position where you determine what others make, consider what factors affect how much you are paying your employees. If you are an employee, consider the same. Research shows us that by thinking about these issues we can reduce our unconscious bias. You can also be a conscious shopper. Support businesses that provide living wages. Costco is one example of a place that provides good wages and good prices.

What we earn determines so much of our life. It affects our health, our happiness, the choices we make and the path our children follow. As an individual you have the right to understand what justifies your pay and the responsibility to justify pay you provide to others. Pay needn’t be a taboo topic. If we commit to asking questions and shining a brighter light on the subject, understanding the legitimate factors that support what we get paid and identifying the factors that are not legitimate, perhaps we can change the way people are paid. If we pay attention to these issues, we can and will create a more fair world. #justifiedpay

This is my last blog post for the Public Scholars program. If you’ve enjoyed reading my blog posts I will continue them at www.leannekeddie.ca.

People think I count beans, but I like to think I’m solving the world’s problems. I use accounting to make companies more sustainable. How do I do this? Let me demonstrate with a story.

Imagine a surgeon decades ago showing up to operate on his many patients who arrive to have tumours from their lungs removed. This doctor is having a positive, practical impact on these individuals’ lives by performing surgery and removing these tumours. But let’s say this doctor, after years of performing the same surgeries, becomes frustrated. It seems that no matter how many surgeries he performs, there are always more waiting. He wonders: why are all these people getting these tumours in the first place?

This is where theory comes in. Could it be that the tumours are all caused from chemicals in their environments? Or from a particular gene they all share? Or could it be caused by the cigarettes and cigars they smoke? In posing these questions, the doctor is trying to get at the root of the problem and theory can help him do this. Having a theory puts forth an idea about how or why something happens. Why might cigarettes and cigars cause tumours? Perhaps the chemicals in the cigarettes damage the cells causing tumours to form? How can we test this?

Now for the research. The doctor could study two groups of people, one that smokes cigarettes and one that doesn’t to see if there are differences in who gets cancer. He’ll need to be careful to rule out other possible explanations and make sure the two groups are similar. For example, if the group who smokes is from an area with a high level of pollution and is older than the other group then we may not be sure that cigarettes are causing the tumours, it could be the pollution or their age. But by having two identical groups in identical circumstances with the only difference being that one group smokes and the other does not we can begin to research our question: does smoking cause tumours?

Using our crystal ball…with science

Now we can make some predictions based on our theory. If the theory is correct, that chemicals in the cigarettes damage the cells, then we should see that the group that smokes should have higher levels of cancer than the group that doesn’t smoke. This research can be repeated until we see that the results are the same again and again: cigarettes cause cancer. While this research was conducted years ago, we now accept its results as commonplace: cigarettes cause cancer. But without theory and research we would still be wondering why these people were getting tumours in their lungs.

But solving the world's problems? With accounting?

First, I think it’s important to understand what accounting is. Most people think it’s tracking money for businesses to figure out how much profit they made last year, but in fact, it’s so much more. If you think about it, accounting is to provide an account of something, communicating what happened or what will happen. Typically, this is thought of in terms of where money went, how it was spent, how much was earned or in terms of where money might go in the future. But really, at its basis, accounting is telling the story of something. While this has traditionally applied to money, today it also applies to other aspects of business. What impact is the business having? How does it handle the resources it uses to make it products or provide its services?

Are all companies created equal?

Think about two companies that appear similar financially: Company A & Company B. They both have profits of $100 million per year. Are they the same? Which one should you invest in? Which one should your pension invest in? What if I told you that more information was available? Sustainability accounting involves the communication of additional information beyond just the financial. This requires that accountants and other members of the organization track, measure and communicate non-financial information about the operations of the company. Does this sound valuable?

What if I told you that Company A made its profits paying a living wage (one that provides a normal standard of living), treated the communities where it operates well and respected the environment through recycling initiatives and energy reduction programs? Does this matter to you? What if Company B did provide the information and you found out that it provided the legally required minimum for wages to its workers and complied with the relevant environmental regulations? It is following the law but doing nothing beyond what is required. Do you find this information useful? Would you invest in Company A or Company B? These are just a few examples of how sustainability accounting communicates information about how companies operate.

During the course of my studies, I read a lot about how companies are implementing new initiatives to become more sustainable. It turns out that about 40% of the largest firms in the U.S. (on the S&P 500) give bonuses to its executives using various sustainability goals (I refer to these as sustainability incentives). For example, a company might say to the CEO that it will give her a bonus if the company reduces its greenhouse gas emissions or increases the diversity of the management team to include more women or minorities. I was curious as to why this was happening. Could it be greedy executives who negotiate to get bigger bonuses by making it look like they are doing good things for the environment and society while really just making more money for themselves? Or could it be that pension funds and other investors want companies to behave better and are pushing for better sustainability performance and the companies are putting these goals in place as a result? There are theories that predict either could be correct so I’ve designed a study to address these questions. I am also studying what effect these sustainability incentives have on the sustainability performance of the firm and how companies can do a better job in providing them.

I believe this will have practical implications for all of us. By understanding sustainability incentives, we will be able to better understand these companies, which ones are ‘good’ and which ones we’d like to avoid. This can help you spend your money with companies that match your values. This knowledge can also help make better investing decisions. In fact, we know that companies that have better social and environmental performance tend to do better financially than those that ignore these issues. Finally, those companies that want to do better can use this research to improve their use of sustainability incentives. How these companies behave can improve our communities or hurt them; help the environment or hurt it. Their decisions affect our lives.

We are living in an age where theory, research and science in general are being questioned for their value. Facts matter. Theory matters. Research matters. Doing good quality research is hard but finding truth in the chaos is important and affects our day-to-day lives in many ways. For those of us committed to sorting through the noise, we need to continue to communicate the value of what we do and why thoughtful, impactful, evidence-based research is important.

Support, Planning, Discipline, Forgiveness…and Budgeting

This blog post is a little different than my previous ones but the topic is one I am most asked about: being a student and parent at the same time. I am currently expecting my fourth baby…yes, my fourth! When I first applied to the program I had no children, when I started I had one child, and in the time that has passed since then (five years) I’ve had two more. Now, in my sixth year here in Montreal, I am expecting my fourth child.

Most people respond with shock or awe to my situation. On the one hand, some assume I must not be thinking straight to attempt to have a family and pursue a PhD simultaneously. On the other hand, some assume I have super powers that make this all happen. The truth is that neither perspective is correct and, to some extent, both perspectives are harmful if they hold the person back from pursuing their own passions because of false beliefs. I have thought rationally about my choices and I am not super human. Having a family and pursuing higher education is not only absolutely possible but, in my opinion, can be mutually beneficial. It does require support, planning, discipline, flexibility and forgiveness, but as with any other job, finding a balance that works well for you is incredibly satisfying.

Some people may be holding themselves back from their dreams because they don’t think it is possible. I wanted to address here some of the practical ways I’ve found to help me find this balance in the hopes that some of it may help other student parents or working parents in general.

The Benefits

For me, having children has given me greater focus on what I feel is important in this world and my kids are a huge source of motivation for me. I strive to create work that will make a difference in this world for them and consequently my research investigates sustainability accounting, that is accounting by organizations that track and report its effects on society and the environment. By focusing on something that I feel has meaning for my life and theirs, this has also improved my focus. I aim to ensure that every minute I am away from my children is a productive one.

I talk to my kids all the time about my work and why I feel it’s important. Even though they are young (all age six and under) they understand that Mommy is working to try to help businesses be better so that they have a better world to grow up in. This means helping businesses treat people well and respect the environment. These are values that are important to my family and my work, as such, there really is no line between the two. When I'm done, I'll be working in a career I love and contributing to improving the world around me through my research, teaching and service.

One of the additional benefits for my children is that they see me engaged in work that I find meaningful and that I am passionate about. As a key role model in their life, I believe this gives them an example to follow, to drum up the courage and confidence to pursue their own passions in life and strive to make a difference in the world. Additionally, they see that both moms and dads can work and share household chores which I hope will translate into fewer gender biases in them as they grow.

Support

One cannot embark on such a journey without support. This has been absolutely critical to my success. I have a husband who supports my work, encourages me and we both pitch in wherever possible to get through each day. We also have access to excellent daycare and schooling for our children. This enhances our childrens' lives on a daily basis exposing them to French as a second language, new friends, and amazing new experiences. As such, I can focus on my work daily knowing that I have a partner to share in their care and a wonderful team of early educators working to ensure my children are safe, well-educated, socialized and are having fun at the same time.

Planning & Discipline

The planning portion is the part that takes the most effort by far, but is possible and, I don’t believe, is any more challenging for a PhD than having a traditional job. Lunches must be made, clothing and homes cleaned and arrangements made to transport the kids to daycare, school and extra-curricular activities. I utilize two main calendars to keep me on track.

One is our family calendar that I update weekly. It remains on the wall on a chalkboard and lays out exactly who needs to be where every week and who is in charge of what task. It does not take a lot of time to create but keeps us well organized. I probably spend about 30 minutes a week putting the calendar together but that 30 minutes has saved us many more and reduces the stress and thought that goes into each week by organizing us in advance so that we just need to execute when the time comes.

For my work, I’ve begun utilizing a Focus Matrix. There are a number of products on the market but essentially what this allows me to do is organize my tasks into those that are 'Urgent and Important', 'Urgent but Not Important', 'Not-Urgent but Important' and 'Not-Urgent and Not Important'. For me, anything that relates to my thesis is Important and anything not related to my thesis is Not Important. This doesn’t mean other tasks are not important but it’s a method of organizing my tasks to stay focused and disciplined during the work day on those things I should be focused on. It’s easy to look around at the dishes or baskets of laundry or any other of 100 tasks that need to be done but I promise you, if you don’t focus on your work, it won’t get done.

In our house, there’s always more laundry to be done and always something that could be cleaned so I try to stay focused on my work during working time and family stuff during family time. I usually focus on the Urgent Important tasks first thing in the morning (those with a clear upcoming deadline usually within the month) and then take on any Urgent Not Important tasks later in the day. This keeps my work progressing and helps me control my natural inclination to deal with every other little task that may come up. My program also includes a timer so that you focus for 25 minutes and then take a five-minute break. I’ve found it to be a very productive method.

I set tangible goals that are small enough to be achievable but that keep me on track. The thought of completing an entire thesis can seem overwhelming at times, but collecting data for 25 companies is something I can achieve because it’s smaller. Over time, I look back at all these little goals and realize how far I’ve come. This helps me to persevere even when the end doesn’t seem like it’s near. Some days I move forward an inch, and some days it’s more. Over time though, those little movements forward add up.

Flexibility

One advantage to being a student is the flexibility I have in my own schedule. But, as with any benefit comes responsibility. I try to work ahead so that I am ready for the inevitable stomach bug that will come for one or more of my children. This helps me to reduce the stress level when something happens because I build a buffer in my timeline.

Sometimes, like many of us, I work in the evenings or on the weekend to catch up or get ahead to meet my deadlines but this allows me to create a schedule that works for my family and I while continuing to do work that I love. I’ve also found that building in extra time to get places reduces the pressure I put on myself and my kids. When I know I have extra time, I’m not as stressed. This does mean sacrificing other things. You simply cannot fit as many things into your day when you need to build in these buffers but it becomes a choice of what is important enough to make the cut.

Forgiveness

Forgiveness is really important. I always attempt to adopt an attitude of forgiveness. I don’t always move things forward and I don’t always achieve what I want. Most of the time there is laundry in baskets waiting to either be washed, folded or put away. My home does not look like Martha Stewart’s home. Most importantly though, I forgive myself for not being able to do it all and when I don't live up to my own expectations. No-one can do it all and feeling down about it is definitely not productive. Forgive yourself, address the situation and move on. We order prepared meals sometimes to give ourselves a break. We also pay for housekeeping services when the budget will allow for it. I know these are luxuries on a student budget but, like everything in life, we make other choices to allow these to happen.

The Budget

Speaking of choices. As an accountant, I had a pretty good income before I gave it up to become a student again. That means we’ve made sacrifices to make this happen. We have two older vehicles and don’t buy new clothes very often. We find as many free activities to do as possible (playing outside, going for a walk or to the park, free activities offered by the city) and we try to stretch every dollar we have. I use money saving apps for all our purchases and I monitor our budget every day.

I’m lucky, I have received scholarships that help greatly and I am forever thankful for this support. Our family income fluctuates due to contract income and the timing of scholarship payments but we work diligently to stretch every dollar we can. We meal plan to avoid wasting both food and money and generally cook for ourselves as opposed to buying more expensive pre-packaged food or going to restaurants. If we do go out to a restaurant, we order water (beverages are so overpriced!). We don’t take lavish vacations and we try to direct our money where it will have value for us and our lives (less takeout means we can hire housekeepers occasionally!) We try to be conscious about where we spend our money so that it adds value to our lives.

Executing all of this can certainly be difficult at times, but when you love something you find a way to make it work. Follow your passion, it's worth it.

This blog post first appeared on Concordia's Public Scholars website at https://www.concordia.ca/cunews/offices/vprgs/sgs/public-scholars/2017/10/31/student-parent-PhD-blog-post.html.