Found 23 article(s) for author 'Sustainability'

Should Management Be Primarily Responsible to Shareholders?

Should Management Be Primarily Responsible to Shareholders? james Heskett, May 9, 2017, Opinion, “One of the most controversial theories in business management is again boiling over. Should management put the shorter-term interests of shareholders over the longer-term needs of the company? What do YOU think? asks James Heskett.Link

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Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit

Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit. Michael Luca, April 11, 2017, Paper, “We study the impact of the minimum wage on firm exit in the restaurant industry, exploiting recent changes in the minimum wage at the city level. The evidence suggests that higher minimum wages increase overall exit rates for restaurants. However, lower quality restaurants, which are already closer to the margin of exit, are disproportionately impacted by increases to the minimum wage. Our point estimates suggest that a one dollar increase in the minimum wage leads to a 14 percent increase in the likelihood of exit for a 3.5-star restaurant (which is the median rating), but has no discernible impact for a 5-star restaurant (on a 1 to 5 star scale).Link

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Integrated Strategy: Residual Market Imperfections as the Foundation of Sustainable Competitive Advantage

Integrated Strategy: Residual Market Imperfections as the Foundation of Sustainable Competitive Advantage. Felix Oberholzer-Gee, Dennis Yao, February 1, 2017, Paper, “Market imperfections are central to understanding the mechanisms that permit firms to capture value. Through competition leading firms often reduce these imperfections, making markets more efficient. The remaining imperfections become a primary impetus for government intervention. Hence, understanding residual market imperfections – those imperfections that persist after market competition and regulation are accounted for – must undergird any assessment of the long-term attractiveness of firm strategies. Our proposed framework provides an integrated view of competition and government intervention, two of the principal forces that influence variation in firm profitability.Link

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Electricity Market Design: Political Economy and the Clean Energy Transition

Electricity Market Design: Political Economy and the Clean Energy Transition. William Hogan, November 9, 2016, Paper, “The focus on the electricity sector’s role in addressing climate change through improved efficiency, development of renewable energy, and use of low carbon fuels creates expanded demands for and of electricity restructuring.Link

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Shareholder Activism on Sustainability Issues

Shareholder Activism on Sustainability Issues. George Serafeim, July 25, 2016, Paper, “A growing number of investors are now engaging companies on environmental, social and governance (ESG) issues, in addition to traditional executive compensation, shareholder rights, and board of directors’ topics. In 2013, nearly 40 percent of all shareholder proposals submitted to Russell 3000 companies related to ESG issues, representing a 60 percent increase since 2003 (Proxy Voting Analytics, 2014). The topics of ESG proposals are diverse, ranging from disclosure of political contributions and compliance with human rights policies, to the adoption of a climate change policy. The purpose of this paper is to test the effect that ESG proposals have on firms’ subsequent ESG performance and market valuation.Link

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Sustainability as a Social Movement

Sustainability as a Social Movement. Robert Eccles, June 2016, Paper. “If you think about sustainable development-the classic definition from the Brundtland Commission is meeting the needs of the current generation without sacrificing the needs of future generations-the private sector has a fundamental role to play. Investors are starting to incorporate these in their decision making, but there’s a lot of greenwashing. […]portfolio managers think this stuff is important and asset owners put pressure on asset managers, you won’t start to extend the time frame. Creating a Sustainable Society We wouldn’t have the capital markets today without financial accounting standards and reporting requirements.Link

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Interview with Dr. Robert Eccles on Sustainability, Data, and ESG Innovations

Interview with Dr. Robert Eccles on Sustainability, Data, and ESG Innovations. Robert Eccles, August 11, 2015, Video, “Dr. Robert Eccles, Professor of Management Practice at Harvard Business School, discusses the importance of sustainability, the trends behind Environmental, Social, and Corporate Governance (ESG) reporting and data sets, and the latest innovations that are helping investors better understand the implications and potential materiality of ESG issues within their investments.Link

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Thin Political Markets: The Soft Underbelly of Capitalism

Thin Political Markets: The Soft Underbelly of Capitalism. Karthik Ramanna, Winter 2015, Paper. “‘Thin political markets’ are the processes through which some of the most complex and critical institutions of our capitalist system are determined—e.g., our accounting-standards infrastructure. In thin political markets, corporate managers are largely unopposed—because of their own expertise and the general public’s low awareness of the issues. This enables managers to structure the ‘rules of the game’ in self-serving ways. The result is a structural flaw in the determination of critical institutions of our capitalist system, which, if ignored, can undermine the legitimacy of the system. This article provides some ideas on how to fix the problem…” Link

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The Integrated Reporting Movement: Meaning, Momentum, Motives, and Materiality

The Integrated Reporting Movement: Meaning, Momentum, Motives, and Materiality. Robert Eccles, 2015, Book. “The Integrated Reporting Movement explores the meaning of the concept, explains the forces that provide momentum to the associated movement, and examines the motives of the actors involved. The book posits integrated reporting as a key mechanism by which companies can ensure their own long-term sustainability by contributing to a sustainable society. Although integrated reporting has seen substantial development due to the support of companies, investors, and…” May require purchase or user account. Link

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The State of Sustainability in China

The State of Sustainability in China. Robert Eccles, October 21, 2014, Paper. “China has experienced remarkable economic growth since the reforms of Deng Xiaoping in the late 1970s. This growth has come at a significant environmental and social cost, raising the question of whether the country needs to focus more on sustainable development than on economic growth for its own sake. Moreover, there is growing recognition in China that more attention needs to be paid to achieving environmental and social as well as economic goals. This recognition has come in the form of changes in public policy…” Link

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