Corporate Social Responsibility and Impact
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- 06 Jun 2023
- Cold Call Podcast
The Opioid Crisis, CEO Pay, and Shareholder Activism
In 2020, AmerisourceBergen Corporation, a Fortune 50 company in the drug distribution industry, agreed to settle thousands of lawsuits filed nationwide against the company for its opioid distribution practices, which critics alleged had contributed to the opioid crisis in the US. The $6.6 billion global settlement caused a net loss larger than the cumulative net income earned during the tenure of the company’s CEO, which began in 2011. In addition, AmerisourceBergen’s legal and financial troubles were accompanied by shareholder demands aimed at driving corporate governance changes in companies in the opioid supply chain. Determined to hold the company’s leadership accountable, the shareholders launched a campaign in early 2021 to reject the pay packages of executives. Should the board reduce the executives’ pay, as of means of improving accountability? Or does punishing the AmerisourceBergen executives for paying the settlement ignore the larger issue of a business’s responsibility to society? Harvard Business School professor Suraj Srinivasan discusses executive compensation and shareholder activism in the context of the US opioid crisis in his case, “The Opioid Settlement and Controversy Over CEO Pay at AmerisourceBergen.”

- 18 Apr 2023
- Research & Ideas
What Happens When Banks Ditch Coal: The Impact Is 'More Than Anyone Thought'
Bank divestment policies that target coal reduced carbon dioxide emissions, says research by Boris Vallée and Daniel Green. Could the finance industry do even more to confront climate change?

- 04 Apr 2023
- Book
Two Centuries of Business Leaders Who Took a Stand on Social Issues
Executives going back to George Cadbury and J. N. Tata have been trying to improve life for their workers and communities, according to the book Deeply Responsible Business: A Global History of Values-Driven Leadership by Geoffrey Jones. He highlights three practices that deeply responsible companies share.

- 23 Mar 2023
- Research & Ideas
As Climate Fears Mount, More Investors Turn to 'ESG' Funds Despite Few Rules
Regulations and ratings remain murky, but that's not deterring climate-conscious investors from paying more for funds with an ESG label. Research by Mark Egan and Malcolm Baker sizes up the premium these funds command. Is it time for more standards in impact investing?

- 16 Feb 2023
- HBS Case
ESG Activists Met the Moment at ExxonMobil, But Did They Succeed?
Engine No. 1, a small hedge fund on a mission to confront climate change, managed to do the impossible: Get dissident members on ExxonMobil's board. But lasting social impact has proved more elusive. Case studies by Mark Kramer, Shawn Cole, and Vikram Gandhi look at the complexities of shareholder activism.

- 31 Jan 2023
- Research & Ideas
It’s Not All About Pay: College Grads Want Jobs That ‘Change the World’
Many college graduates will accept lower salaries for roles that have the potential to give back to society, says research by Letian Zhang. Could trading pay for altruism help shrink the income gap?

- 17 Jan 2023
- Cold Call Podcast
Nestlé’s KitKat Diplomacy: Neutrality vs. Shared Value
In February 2022, Russia invaded Ukraine, and multinational companies began pulling out of Russia, in response. At Switzerland-based Nestlé, chief executive Mark Schneider had a difficult decision to make. Nestlé had a long tradition of neutrality that enabled it to operate in countries regardless of their political systems and human rights policies. But more recently the company had embraced Michael Porter’s “shared value” paradigm, which argues that companies have a responsibility to improve the business community and the health of their communities. What should Schneider do? Professor Geoffrey Jones discusses the viability of the shared value concept and the social responsibility of transnational corporations today in the case, “Nestlé, Shared Value and Kit Kat Diplomacy.”

- 13 Jan 2023
- Research & Ideas
Are Companies Actually Greener—or Are They All Talk?
More companies than ever use ESG reports to showcase their social consciousness. But are these disclosures meaningful or just marketing? Research by Ethan Rouen delves into the murky world of voluntary reporting and offers advice for investors.

- 08 Dec 2022
- HBS Case
The War in Ukraine and Nestlé’s Moral Dilemma: Stay or Leave Russia?
Nestlé had to choose whether to leave Russia in protest and potentially deprive civilians of essential goods, such as baby formula, or stay and face global outrage. A case study by Nien-hê Hsieh explores this complex decision and offers advice for leaders weighing fraught questions.

- 09 Nov 2022
- In Practice
COP27: What Can Business Leaders Do to Fight Climate Change Now?
The US government plans to spend $370 billion to cut greenhouse gases and expand renewable energy—its biggest investment yet. In the wake of COP27, we asked Harvard Business School faculty members how executives could seize this moment.

- 21 Oct 2022
- Research & Ideas
People Trust Business, But Expect CEOs to Drive Social Change
Companies should do more to confront climate change, labor market shifts, and racism, according to a survey of 14,000 people in 14 countries by the Institute for the Study of Business in Global Society and the Edelman Trust Institute. Is it time for more business leaders to step up?

- 20 Sep 2022
- Cold Call Podcast
Larry Fink at BlackRock: Linking Purpose to Profit
In 2014, Larry Fink started writing letters to the leaders of some of the largest publicly listed companies, urging them to consider the importance of environmental, social, and governance (ESG) issues. Fink is the chairman and CEO of BlackRock, one of the largest asset management houses in the world. The firm’s success was rooted in its cost-effective, passive investment products that rely more on tracking indices and funds. But Fink wanted his firm to engage with the companies in which they invest and hold them accountable for their social and environmental impacts. What role should investors play in urging business leaders to take environmental, social, and governance issues more seriously and enforcing compliance? Harvard Business School professor George Serafeim discusses the merits of Fink’s approach, the importance of corporate investments in ESG themes, and how to lead a company driven by purpose and profit in his case, “BlackRock: Linking Purpose to Profit,” and his new book Purpose and Profit: How Business Can Lift Up The World.

- 02 Aug 2022
- Research & Ideas
6 Strategies for Building Socially Responsible—and Profitable—Companies
A new generation of business leaders is finding innovative and profitable ways to bring about positive change in the world. In the book Purpose and Profit, George Serafeim offers a roadmap for people at every career stage who seek to align their professional aspirations with their personal values.

- 28 Jun 2022
- Cold Call Podcast
Scaling a Fintech Startup for the Greater Good
Esusu launched in 2018 with a rotational savings product and continued growing their fintech startup in late 2019 with Esusu Rent, a rent reporting tool that enables renters to improve their credit scores. In March 2020, co-founders Abbey Wemimo and Samir Goel were working to determine how best to scale Esusu to advance their mission of promoting financial inclusion in the US. Harvard Business School Assistant Professor Emily Williams discusses how the two co-founders decided how to allocate resources and scale their business in the case, “Esusu: Solving Homelessness Backwards.”

- 28 Jun 2022
- Book
The Moral Enterprise: How Two Companies Profit with Purpose
Despite polarized attitudes, Rebecca Henderson argues that it's the perfect time for companies to reset their moral compass. In an essay from the book A Political Economy of Justice, she explores the social efforts of Cadbury and Unilever.

- 26 May 2022
- HBS Case
Apple vs. Feds: Is iPhone Privacy a Basic Human Right?
Leaders today must be ready to take a stand on thorny social and political issues. A case study by Nien-hê Hsieh and Henry McGee examines how Apple CEO Tim Cook turned calls for data access into a rallying cry for privacy, and the complexities that followed.

- 18 May 2022
- Research & Ideas
Are Banks the ‘Bad Guys’? Overdraft Fees Are Crushing Low-Income Customers
Payday lenders have been accused of exploiting poor consumers, but traditional banks exact a similar toll through overdraft fees. Research by Marco Di Maggio and Emily Williams shows how seemingly innocuous checking accounts can become vehicles for financial distress.

- 07 Apr 2022
- Research & Ideas
Giving Back: Consumers Care More About How Companies Donate Than How Much
When it comes to corporate donations for brand enhancement, bigger isn't necessarily better. Research from Elizabeth Keenan and Leslie John offers new insights for companies trying to win the hearts of socially conscious consumers. Open for comment; 0 Comments.

- 25 Jan 2022
- Cold Call Podcast
How Footwear Startup Allbirds is Decarbonizing Fashion
In 2021, the footwear startup Allbirds was extending its product range into apparel and expanding beyond its online store to open more retail stores around the world. It was also freely sharing its know-how and material innovations with its competitors to try to scale its efforts to decarbonize fashion, by substituting natural materials for conventional petroleum-based materials and leather. But the company also had to find ways to remain differentiated, based on design and comfort. Professor Mike Toffel and Allbirds co-founder and CEO Joey Zwillinger discuss the growing environmental impact of the fashion industry and how the company managed the tension between advancing its environmental mission and staying ahead of competitors in the case, Allbirds: Decarbonizing Fashion. Open for comment; 0 Comments.
Who Gets the Loudest Voice in DEI Decisions?
Business leaders are wrestling with how to manage their organizations' commitment to diversity, equity, and inclusion. If you were a CEO, which constituency would you consider most: your employees, customers, or investors? asks James Heskett. Open for comment; 0 Comments.