Meeting the Sustainable Development Goals by 2030 involves transformational change in the business of business, and social enterprises can lead the way in such change. We studied Cultivate, one such social enterprise in Christchurch, New Zealand, a city still recovering from the 2010/11 Canterbury earthquakes. Cultivate works with vulnerable youth to transform donated compost into garden vegetables for local restaurants and businesses. Cultivate’s objectives align with SDG concerns with poverty and hunger (1 & 2), social protection (3 & 4), and sustainable human settlements (6 & 11). Like many grant-supported organisations, Cultivate is required to track and measure its progress. Given the organisation’s holistic objectives, however, adequately accounting for its impact reporting is not straightforward. Our action research project engaged Cultivate staff and youth-workers to generate meaningful ways of measuring impact. Elaborating the Community Economy Return on Investment tool (CEROI), we explore how participatory audit processes can capture impacts on individuals, organisations, and the wider community in ways that extend capacities to act collectively. We conclude that Cultivate and social enterprises like it offer insights regarding how to align values and practices, commercial activity and wellbeing in ways that accrue to individuals, organisations and the broader civic-community.
The increase of the world's population located near areas prone to natural disasters has given rise to new ‘mega risks’; the rebuild after disasters will test the governments’ capabilities to provide appropriate responses to protect the people and businesses. During the aftermath of the Christchurch earthquakes (2010-2012) that destroyed much of the inner city, the government of New Zealand set up a new partnership between the public and private sector to rebuild the city’s infrastructure. The new alliance, called SCIRT, used traditional risk management methods in the many construction projects. And, in hindsight, this was seen as one of the causes for some of the unanticipated problems. This study investigated the risk management practices in the post-disaster recovery to produce a specific risk management model that can be used effectively during future post-disaster situations. The aim was to develop a risk management guideline for more integrated risk management and fill the gap that arises when the traditional risk management framework is used in post-disaster situations. The study used the SCIRT alliance as a case study. The findings of the study are based on time and financial data from 100 rebuild projects, and from surveying and interviewing risk management professionals connected to the infrastructure recovery programme. The study focussed on post-disaster risk management in construction as a whole. It took into consideration the changes that happened to the people, the work and the environment due to the disaster. System thinking, and system dynamics techniques have been used due to the complexity of the recovery and to minimise the effect of unforeseen consequences. Based on an extensive literature review, the following methods were used to produce the model. The analytical hierarchical process and the relative importance index have been used to identify the critical risks inside the recovery project. System theory methods and quantitative graph theory have been used to investigate the dynamics of risks between the different management levels. Qualitative comparative analysis has been used to explore the critical success factors. And finally, causal loop diagrams combined with the grounded theory approach has been used to develop the model itself. The study identified that inexperienced staff, low management competency, poor communication, scope uncertainty, and non-alignment of the timing of strategic decisions with schedule demands, were the key risk factors in recovery projects. Among the critical risk groups, it was found that at a strategic management level, financial risks attracted the highest level of interest, as the client needs to secure funding. At both alliance-management and alliance-execution levels, the safety and environmental risks were given top priority due to a combination of high levels of emotional, reputational and media stresses. Risks arising from a lack of resources combined with the high volume of work and the concern that the cost could go out of control, alongside the aforementioned funding issues encouraged the client to create the recovery alliance model with large reputable construction organisations to lock in the recovery cost, at a time when the scope was still uncertain. This study found that building trust between all parties, clearer communication and a constant interactive flow of information, established a more working environment. Competent and clear allocation of risk management responsibilities, cultural shift, risk prioritisation, and staff training were crucial factors. Finally, the post-disaster risk management (PDRM) model can be described as an integrated risk management model that considers how the changes which happened to the environment, the people and their work, caused them to think differently to ease the complexity of the recovery projects. The model should be used as a guideline for recovery systems, especially after an earthquake, looking in detail at all the attributes and the concepts, which influence the risk management for more effective PDRM. The PDRM model is represented in Causal Loops Diagrams (CLD) in Figure 8.31 and based on 10 principles (Figure 8.32) and 26 concepts (Table 8.1) with its attributes.
The Canterbury earthquake sequence (2010-2011) was the most devastating catastrophe in New Zealand‘s modern history. Fortunately, in 2011 New Zealand had a high insurance penetration ratio, with more than 95% of residences being insured for these earthquakes. This dissertation sheds light on the functions of disaster insurance schemes and their role in economic recovery post-earthquakes. The first chapter describes the demand and supply for earthquake insurance and provides insights about different public-private partnership earthquake insurance schemes around the world. In the second chapter, we concentrate on three public earthquake insurance schemes in California, Japan, and New Zealand. The chapter examines what would have been the outcome had the system of insurance in Christchurch been different in the aftermath of the Canterbury earthquake sequence (CES). We focus on the California Earthquake Authority insurance program, and the Japanese Earthquake Reinsurance scheme. Overall, the aggregate cost of the earthquake to the New Zealand public insurer (the Earthquake Commission) was USD 6.2 billion. If a similar-sized disaster event had occurred in Japan and California, homeowners would have received only around USD 1.6 billion and USD 0.7 billion from the Japanese and Californian schemes, respectively. We further describe the spatial and distributive aspects of these scenarios and discuss some of the policy questions that emerge from this comparison. The third chapter measures the longer-term effect of the CES on the local economy, using night-time light intensity measured from space, and focus on the role of insurance payments for damaged residential property during the local recovery process. Uniquely for this event, more than 95% of residential housing units were covered by insurance and almost all incurred some damage. However, insurance payments were staggered over 5 years, enabling us to identify their local impact. We find that night-time luminosity can capture the process of recovery; and that insurance payments contributed significantly to the process of local economic recovery after the earthquake. Yet, delayed payments were less affective in assisting recovery and cash settlement of claims were more effective than insurance-managed repairs. After the Christchurch earthquakes, the government declared about 8000 houses as Red Zoned, prohibiting further developments in these properties, and offering the owners to buy them out. The government provided two options for owners: the first was full payment for both land and dwelling at the 2007 property evaluation, the second was payment for land, and the rest to be paid by the owner‘s insurance. Most people chose the second option. Using data from LINZ combined with data from Stats NZ, the fourth chapter empirically investigates what led people to choose this second option, and how peer effect influenced the homeowners‘ choices. Due to climate change, public disclosure of coastal hazard information through maps and property reports have been used more frequently by local government. This is expected to raise awareness about disaster risks in local community and help potential property owners to make informed locational decision. However, media outlets and business sector argue that public hazard disclosure will cause a negative effect on property value. Despite this opposition, some district councils in New Zealand have attempted to implement improved disclosure. Kapiti Coast district in the Wellington region serves as a case study for this research. In the fifth chapter, we utilize the residential property sale data and coastal hazard maps from the local district council. This study employs a difference-in-difference hedonic property price approach to examine the effect of hazard disclosure on coastal property values. We also apply spatial hedonic regression methods, controlling for coastal amenities, as our robustness check. Our findings suggest that hazard designation has a statistically and economically insignificant impact on property values. Overall, the risk perception about coastal hazards should be more emphasized in communities.
