Annual report 2020 by Hanken School of Economics

Annual Report 2020

Rector’s review

t is fair to say that 2020 turned out to be a year that none of us could have imagined. However, the year began on a celebratory note with a Partner Assembly, where Kersti Kaljulaid, President of Estonia, was conferred as Honorary Doctor in a festive ceremony. It was a nice conclusion to our 110th anniversary year. A month later, the coronavirus spread to Finland and, soon after that, Hanken was the first university in Finland to move its education online. Despite the pandemic, last year was very successful, with a record number of students graduating from Hanken and our research getting a great deal of attention in the media. For example, our Professor in Humanitarian Logistics was interviewed by foreign media to talk about the challenges related to coronavirus vaccine logistics, among other things. Helsinki Graduate School of Economics, in which Hanken is also involved, has actively produced economic reports during the pandemic. Despite the pandemic, we have continued to develop Hanken in accordance with our strategy, which emphasises responsible education and sustainability. One of our latest areas of strength lies in responsible organising, and we were again rewarded for excellence in our PRME reporting. Walking our talk, we installed solar panels on the roof of our

buildings, in addition to joining an initiative in which we are committed to being carbon neutral by 2030. Hanken continues to attract new students. We enjoy a good reputation, and we are pleased to note that our teaching was rated highly despite the exceptional circumstances. To spread our knowledge and make a positive contribution during these difficult times, we granted free access to our four MOOCs (Massive Open Online Courses). We were pleased to see the launch of the course “Principles of Wealth Management”, offered by Björn Wahlroos, former Chair of the Board at Hanken, which was immensely popular, drawing nearly 8,000 participants and getting an excellent feedback result of 4.8 out of 5. Last year was also special for Hanken’s Vaasa unit, which celebrated its 40th anniversary. Unfortunately, we were not able to celebrate on site, but the virtual seminar marking the event attracted many participants. Our investments, efforts and successes over the year would not have been possible without our great staff, students and student union, our active alumni and our committed partners. I wish to thank you all for the past year. Together, we have come through an exceptional year with flying colours. K A R EN S P EN S

Kersti Kaljulaid, President of Estonia, Honorary Doctor at Hanken

he President of Estonia, Kersti Kaljulaid, got her Honorary Doctor’s degree in a festive ceremony at Hanken on 6 February 2020. She was conferred the degree for her work for an efficient, equal and functioning society in which digitalisation supports societal development. In her speech at the ceremony, Kaljulaid said she sees digital technology as an important factor of equality. “With the government office in Estonia now open 365 days a year and 24 hours a day, there is total accessibility. Digital technology can be a great equalizer, liberaliser and globaliser of society – if we allow it to be”, says Kaljulaid. She also spoke about technological development making it difficult to know what to teach future generations, since their technology will be completely different from ours. According to Kaljulaid, the new jobs that will be created as a result of technology are related to human interaction, meaning that empathy becomes increasingly important to learn. “I’ve thought about it a lot and have reached the conclusion that we have to teach our children to be compassionate human beings because of the technological world we live in. New jobs are all about being human, our children are specialised in being human beings in this technological world. This is what I wanted to tell you tonight”, Kaljulaid ended her speech. 3

ACADEMIC EXCELLENCE

Making pandemic response more effective

he Institute for Humanitarian Logistics, HUMLOG, coordinates a major research project in which the researchers investigate how different countries have handled the coronavirus (COVID-19) pandemic, how the economy is affected, and how disinformation spreads on social media and how to tackle this. After the outbreak of the coronavirus pandemic, researchers are trying to find ways to tackle similar situations in the future. The project Health Emergency Response in Interconnected Systems (HERoS), funded by Horizon 2020, involves a total of 11 organisations in the different parts of the project. The work started in the spring of 2020, and Hanken Professor Gyöngyi Kovács is lead coordinator and principal investigator of the three-year project. “The aim of this project is to make pandemic response faster and more effective. We can contribute to this in many ways, as many of us working on this project have worked with epidemics before, and we have learned a lot from other types of epidemic outbreaks such as SARS, ebola, and cholera epidemics”, says Kovács.

The Hanken researchers focus mainly on examining the availability of medical supplies, how the supply chains for medical equipment work in pandemic areas and especially in quarantine zones. They also look at supply chain disruptions globally, and how they for example affect access to food in various areas, but also economic disruptions overall. Several humanitarian and medical organisations are involved in the project, and the researchers collect and compile data from them. As an example, the EU expects an analysis of what works and what does not work in the medical supply chain and guidelines for how to proceed, for example, how to change contracts or flows. ”This is a three-year project and I hope that, in three years, we will not have this particular pandemic anymore, but I am convinced that we will come to some conclusions on how to make pandemic response more effective, and also in relation to particular types of decisions and particular types of crisis governance”, says Kovács.

Nikodemus Solitander:

“Human rights issues should be emphasised more by company management”

anken School of Economics, FIANT Consulting Oy, 3bility Consulting and the Human Rights Centre (HRC) started a joint research project called SIHTI (Status of Human Rights Performance of Finnish Companies) in spring 2020. The aim of the project is to obtain a comprehensive overview of how Finnish companies fulfil their human rights responsibilities in relation to the UN Guiding Principles on Business and Human Rights. The analysis covered a total of 78 Finnish companies. The results show that although the majority of Finnish companies are committed to respecting human rights, only one in four companies systematically fulfils and follows up on their responsibility for these rights. Finnish companies also provide scant information on how they fulfil their responsibilities. However, this result corresponds to the average at an international level. The debate on what responsibility companies have for human rights focuses strongly and justifiably on countries where there is a great risk that human rights are not respected. According to the SIHTI researchers, it would still be important to highlight potential risks in Finland and other so-called low-risk countries. The findings from Finland can be compared to the Corporate Human Rights Benchmark, which assesses 200 of the largest publicly traded companies in the world on a set of human rights indicators. “There is clearly room for improvement, but the situation regarding corporate human rights responsibilities in Finland is at about the same level as the results of the global assessments carried out within the framework of the Corporate Human Rights Benchmark”, says Project Lead Nikodemus Solitander at Hanken. “The results of the new study suggest that continuous monitoring has a significant impact on the realisation of responsibilities in practice. It is also important for companies to place greater emphasis on human rights issues at the level of strategy and management”, he continues. 5

INTERNATIONAL ORIENTATION

David Grant:

“Academia has no home country”

rofessor David B. Grant was appointed new Dean of Research and Societal Impact at Hanken on 20 October 2020. Grant has been working for Hanken since 2015, and is now also Hanken’s first international dean, originating from Canada. ”Internationalisation is essential for every quality university. Hanken is operating in an international market and the Finnish government is also encouraging internationalisation to add value to Finland and its citizens”, explains David Grant. Hanken is, in fact, ahead of the curve as almost 30% of the faculty, 11% of the master’s degree students, and 45% of the doctoral students are international. The school is also a member of several international networks and has an active student exchange programme to ensure a high level of cooperation on a global scale. ”The pandemic in 2020 was inconvenient in this respect, but it didn’t stop our international ambitions. As the rest of the world, we moved our events and conferences online, and still had both incoming and outgoing exchange students. Three US professors also visited us as part of the Fulbright scheme”, Grant points out. The internationalisation at Hanken and in other universities is almost exclusively carried out in English, and that language has become a lingua franca within academia. Despite being a native English speaker Grant worries a bit that a great deal of research is published in English. ”As internationalisation grows, more countries are looking to work in English instead of their own languages. I would say to them and all universities in Finland – don’t lose sight of your national language and culture! It has to be embedded in your strategy at an institutional level to ensure that you stay relevant to the stakeholders in your country.” ”The focus of many accreditation standards lies on the financial and educational impact the university has. We want to take it even a step further and are very interested in looking at what societal impact Hanken makes. We have been working on how to reach out to local stakeholders, including getting our research through to the Swedish and Finnish speaking media”, concludes Grant.

CORPORATE REL ATIONS

Donations helped set up Quantum

uantum is a new initiative by Hanken that provides access to databases with financial data. Thanks to its modern technology, we can stream all our teaching and events, as well as follow financial news in real time. “We wanted to offer our students and alumni the latest in IT, integrated into a comfortable, stock exchange-like environment specially designed for this purpose”, says Othmar Lehner. Quantum testifies to Hanken’s commitment to adopt the latest technology and help our students achieve world-class digital competence. The Quantum project was part of Hanken’s 110th anniversary and the HANKEN 110 fundraising campaign. It was clear that this was something the university needed to secure its future competitiveness. “The campaign focused on creativity, and Quantum represents creative thinking and creativity in many different ways. Facilities such as these are very popular at universities, but we are unique in having made Quantum an exceptionally beautiful space”, Lehner says. Quantum was inaugurated in connection with Hanken’s partner assembly, arranged for the first time on 6 February 2020 to thank all our partners providing continuous support to Hanken. In his speech addressing the partner assembly participants, Henrik Ehrnrooth, President & CEO of KONE and Chair of Hanken’s donation committee, emphasised the importance of the network and support to Hanken. Camilla Wardi, Head of Corporate Relations and Outreach at Hanken, also appreciates the cooperation with Hanken’s stakeholders. “The partner assembly is a networking event for celebrating our excellent cooperation with partner companies and donors. It also offers us the opportunity to show all the things we have achieved thanks to the donations and the support given to Hanken. The evening was a success, and we are happy to have found a forum for exhibiting our joint commitment to shaping Hanken’s future. Our next partner assembly will take place in 2022, and we plan to make it at least as memorable an event as the first one”, says Wardi.

GLOBAL COMPETENCES

Creative teachers created new teaching methods during the pandemic

ost of the teaching in 2020 took place remotely after the outbreak of the epidemic in March, but in the autumn many students longed to return to class. One way to respond to the students’ wishes was to combine in-class and online teaching. Jori Grym was one of Hanken’s lecturers who taught in-class and at the same time streamed the class online. Even those who studied remotely could be active via the chat that Grym followed while he was speaking. The course could also be completed in its entirety by watching the lectures afterwards and actively taking part in an online discussion forum. ”This can be an effective way to complete courses for a number of students, since it grants the opportunity to listen to lectures later with greater speed. Or why not when you’re out for a jog”, says Grym. Exchange students, who did not have the possibility to come back after having travelled home in the spring, also took part in the course. It was therefore also important that the course could be taken regardless of the time zone. Grym

considers the course to be a success, but if he should give the course once again in the same way, there is one thing he would do differently. ”I want the lecture to be filmed with two cameras – one directed to show the classrom and the other towards the board that I use a lot in my teaching.” Mikaela Krohn, Digital Education Officer at Hanken, guides teachers in using new teaching technology in the Hanken Teaching Lab. She speaks warmly about using ready-made applications that make the online teaching more engaging, for example polls, pictures and word clouds. “Distance learning easily becomes monotonous for the students and it takes a lot of time to develop versatile teaching materials that work online. Fortunately, there are many ready-made applications that the teacher can use. We could also become better at using open resources that support learning and are available online under Creative Commons licenses, and sharing the material we have created”, states Krohn.

SOCIAL RESPONSIBILIT Y

Students rate Hanken’s societal impact highly

ositive Impact Rating (PIR) is a new international rating where students assess their business schools on how they perceive their positive impact in the world. The positive impact of business schools goes beyond their contribution to business and the economy; it addresses the need for their positive impact on society. The impact of business schools in PIR is measured for example by governance, culture, educational programmes, learning methods, student engagement, and the institution as a role model. Hanken’s student union decided to participate in the ratings together with 50 other universities around the world. The results were announced 22 January 2020 at the World Economic Forum in Davos. Already in this first rating, Hanken came in clearly above the mean and the results indicate that Hanken’s governance systems and culture are well positioned to bring about positive change in society. Hanken was also the only Finnish business school to be featured in the ratings and has been recognised as a progressing school, which falls at level 3 of

5. Only 9 schools reached level 4 and none made it to level 5. ‘’Being assessed by our students as one of the leading schools in the world in positive societal impact confirms that we are indeed on the right path. We will be engaging with our students more in the future on these topics as it is rather clear what they want. Overall, this provides us with a great foundation to build on to further improve our societal impact”, says Minna Martikainen, Dean of Education at Hanken, who received the recognition at the World Economic Forum in Davos. “We as students of Hanken want to gain an education and tools that help us bring about the change in society that is urgently needed to solve various sustainability challenges, says Andreas Lindén, President of Hanken’s Student Union. “We are very proud to be studying at Hanken which provides a good educational base for us to do that, but as always there is scope for improvement. We would also want Hanken to lead the change when it comes to its own environmental and sustainability impact.” 9

HIGHLIGHTS 2020

2020 Fazer Award and Anders Wall scholarship receivers Hanken’s largest student award, the Fazer Award worth EUR 15,000, was awarded to the Hanken student Max Heino at Hanken’s Partner Assembly on 6 February. Max Heino has contributed to developing a new business concept for circulating used furniture, and thereby highlighting issues of responsibility and respect for the environment. The award committee emphasized that Heino also has a genuine drive and a strong commitment to enterprise. The Hanken student Simon Karlsson was awarded this year’s Anders Wall scholarship worth SEK 125 000. In addition to his studies at Hanken, Simon Karlsson has founded two companies on the Åland Islands, Crestum and Alegro. Karlsson is also manager of the guest harbour in Mariehamn, one of the biggest marinas in Scandinavia. Simon Karlsson has enormous potential and is a role model to other young entrepreneurs both at Hanken and nationally.

Record-breaking amount of applications to Hanken’s Swedish programmes

Helsinki GSE economic situation room during the coronavirus crisis

The number of applications for Hanken’s BSc and MSc programmes with teaching in Swedish has steadily increased every year for the last three years. In 2020, the BSc and MSc programme in Swedish received a total of 1916 applications, which is a 12 percent increase from the year 2019.

The Helsinki Graduate School of Economics, a collaboration between Hanken School of Economics, Aalto University, and the University of Helsinki, established an economic situation room with the aim to support fast decision making amid the coronavirus crisis.

The completely new BSc admission quota where students are offered admission based on merits acquired outside, but alongside, their secondary school education, received a total of 17 applications.

The situation room was established to support ministries and other public authorities in economic policy-making with the aim to provide decisionmakers with a close to real-time view on developments in the corporate sector, the labour market, and society in general.

Financial Times ranking places Hanken & SSE among the best Financial Times ranks the top executive education providers around the world annually. Hanken & SSE Executive Education has taken part in the yearly Financial Times rankings as Stockholm School of Economics’ (SSE) joint venture with Hanken in Finland. Out of the thousands of providers, SSE continues to maintain its position in the ranking as the number 1 executive education provider in Northern Europe in all categories. “We are very proud that we as a Nordic provider are able to achieve such great results together with the entire team at Stockholm School of Economics across the Nordics and the Baltics”, says Marc Hinnenberg, CEO of Hanken & SSE Executive Education.

Hanken’s research citation rate ranked number 1 in the Nordics according to U-Multirank In U-Multirank’s yearly ranking, Hanken scores at the top of Finnish universities in terms of research citation rate and top cited publications, as well as international student mobility. For research citation rate, Hanken is number one among all universities in the Nordic countries. U-Multirank is an independent consortium, funded by the European Commission, that currently ranks 1,600 higher education institutions (HEIs) around the world. Since the first U-Multirank ranking in 2014, Hanken has been ranked among the very top among universities globally, when it comes to research and research linkages.

Hanken receives award for PRME reporting On 18 June 2020, Hanken was awarded for excellence in reporting for its PRME report 2016–2018 among 500 competitors at the PRME Global Forum. Hanken has specially been recognised for its reporting on Sustainable Development Goals (SDGs). ‘’Hanken has been a frontrunner in reporting and transparency when it comes to integrating responsible management education and SDGs”, says Mette Morsing, Head of PRME Secretariat. Hanken has been a signatory to the Principles for Responsible Management Education (PRME) since April 2008 and has been reporting biannually since 2010.

HIGHLIGHTS 2020

A year of podcast launches

Alumnus of the Year

During the year 2020, Hanken launched its first podcasts with varying themes.

Hanken appointed Roger Holm as Alumnus of the Year during the annual homecoming day Hanken dagen on 2 October 2020.

Hanken’s Summer Podcast consists of 15 insightful summer talks where researchers at Hanken talk about their research and current issues. In the After Class podcast, Jesper Haga and Dennis Sundvik discuss finance and accounting in a relaxed way. The podcast was an added bonus to their teaching in different courses at Hanken, but it may well appeal to anyone interested in these topics. In the conversational podcast Sustainability Unwrapped, researchers from Hanken turned to experts outside academia to find out how the world can become more sustainable.

Roger Holm graduated from Hanken in 1997, majoring in finance. Holm has had a long career at Wärtsilä, and is currently President of Wärtsilä Marine Power and Executive Vice President. He has actively engaged with Hanken in many ways, and is a member of the Board since 2018. Through his involvement in Hanken’s activities, Roger Holm is an active link between Hanken and the business community.

Principles of Wealth Management with Björn Wahlroos The open online MOOC course Principles of Wealth Management was launched in October 2020. Björn Wahlroos was one of the lead educators on the course. Wahlroos has had a remarkable career in the financial industry, and he has served both as professor and as chairman of the board at Hanken. The course, which focuses on wealth management, including diversification, risk and return, and market efficiency, is intended for anyone with an interest in economics. It has attracted a large number of participants from 90 different countries.

40 Years of Hanken in Vaasa

Hanken is taking steps towards carbon neutrality by 2030

The year 2020 marked the 40 th anniversary of Hanken in Vaasa, which was founded in 1980 to provide the possibility to study economic sciences in Swedish also in the Vaasa region. Although discussions about merging Hanken in Vaasa with Åbo Akademi University or the University of Vaasa have taken place over the years, Hanken’s operations in Vaasa are still strong today.

In 2019, Hanken decided to become carbon neutral by 2030 and has now, as a step towards this goal, installed solar panels on the roof of the Hanken building in Helsinki. Solar panels will also be installed in Vaasa. Hanken has also compensated for its calculated emissions in 2019 through three projects that have been granted the gold standard. The projects focus on different aspects of social responsibility and the environment in different parts of the world. As a next step, Hanken is currently working on devising an ambitious environmental plan.

“Vaasa is the natural location for an internationally oriented, Triple-Crown accredited school of economics. In this context, we can contribute with our know-how and our relevance”, says Sören Kock, dean and rector’s representative in Vaasa.

SUSTAINABILITY

NUMBER OF STUDENTS

Courses in Corporate Responsibility:

Bachelor’s degree students

1401

Emissions (energy, paper, waste, electronic procurement)*:

Master’s degree students

266,14 tonnes

1030

*Exceptional numbers due to the pandemic.

PhD students 127 TOTAL 2558 Faculty and staff* 303

INTERNATIONAL STUDENT MOBILITY

*Teaching and researching staff, and other staff

International students at Hanken (over 3 months)*: 123 Hanken students abroad (over 3 months)*: 175 *Exceptional numbers due to the pandemic.

PUBLICATIONS

Class A1–A4 & C1** (total) 173 Number of open access publications 88 NUMBER OF DEGREES

Bachelor’s degrees 249 Master’s degrees 318 Doctoral degrees 14

JUFO* – level 2 71 JUFO* – Level 3 24 *Publication Forum (JUFO) is a classification of publication channels created by the Finnish scientific community to support the quality assessment of academic research **A1–A4 Peer-reviewed scholarly journal articles, C1 Monographs

Income statement

1.1–31.12.2020

1.1–31.12.2019

Government funding

18 416 999,96

17 390 000,00

Grants and benefits

4 571 137,21

5 367 455,40

Income from commercial activities

208 344,02

383 380,33

Other revenue

162 949,51

230 335,76

23 359 430,70

23 371 171,49

-17 704 107,48

-17 002 400,31

-428 755,80

REVENUE

EXPENSES Staff expenses Depreciation Other expenses

OPERATING DEFICIT FUNDRAISING FINANCIAL INCOME AND EXPENSES CHANGE IN RESERVES SURPLUS/DEFICIT FOR THE FINANCIAL YEAR

Balance sheet

-7 460 652,13

-8 685 776,44

-25 593 515,41

-26 116 932,55

-2 234 084,71

-2 745 761,06

76 104,00

647 809,00

7 265 019,30

17 082 311,23

-76 104,00

-647 809,00

5 030 934,59

14 336 550,17

ASSETS Fixed assets Tangible assets 21 008 832,00

21 437 587,80

120 674 539,43

116 294 112,22

Current receivables

3 180 190,44

3 471 480,88

Cash and cash equivalents

3 577 584,87

750 921,38

148 441 146,74

141 954 102,28

Equity

75 185 060,22

Statutory capital

19 364 036,60

19 081 932,60

Reserves

34 730 234,94

20 393 684,77

Land and buildings Investments

Total assets EQUITY AND LIABILITIES

Retained earnings Surplus/deficit for the financial year

5 030 934,59

14 336 550,17

134 310 266,35

128 997 227,76

Liabilities 3 843 596,80

4 804 496,00

Current liabilities

10 287 283,59

8 152 378,52

Total equity and liabilities

148 441 146,74

141 954 102,28

Long-term liabilities

HANKEN SCHOOL OF ECONOMICS HELSINKI ARKADIANKATU 22, P.O. BOX 479 00100 HELSINKI, FINLAND PHONE +358 (0)29 431 331 VAASA KIRJASTONKATU 16, P.O. BOX 287 65101 VAASA, FINLAND PHONE: +358 (0)6 3533 700 INFO@HANKEN.FI HANKEN.FI

ISBN 978-952-232-428-3 ISSN 1796-2722 PUBLISHER TEXT PHOTOGRAPHS PRINTED BY

SVENSKA HANDELSHÖGSKOLAN CAMILLA BERGHÄLL, MARLENE GÜNSBERG, MARIA SVANSTRÖM OCH NINA WINQVIST HANKEN’S ARCHIVE HANSAPRINT OY, TURENKI