Governance →
- 04 Mar 2024
- Research & Ideas
Want to Make Diversity Stick? Break the Cycle of Sameness
Whether on judicial benches or in corporate boardrooms, white men are more likely to step into roles that other white men vacate, says research by Edward Chang. But when people from historically marginalized groups land those positions, workforce diversification tends to last. Chang offers three pieces of advice for leaders striving for diversity.
- 27 Feb 2024
- Research & Ideas
Why Companies Should Share Their DEI Data (Even When It’s Unflattering)
Companies that make their workforce demographics public earn consumer goodwill, even if the numbers show limited progress on diversity, says research by Ryan Buell, Maya Balakrishnan, and Jimin Nam. How can brands make transparency a differentiator?
- 17 Jan 2024
- Research & Ideas
Are Companies Getting Away with 'Cheap Talk' on Climate Goals?
Many companies set emissions targets with great fanfare—and never meet them, says research by Shirley Lu and colleagues. But what if investors held businesses accountable for achieving their climate plans?
- 09 Jan 2024
- Research & Ideas
Could Clean Hydrogen Become Affordable at Scale by 2030?
The cost to produce hydrogen could approach the $1-per-kilogram target set by US regulators by 2030, helping this cleaner energy source compete with fossil fuels, says research by Gunther Glenk and colleagues. But planned global investments in hydrogen production would need to come to fruition to reach full potential.
- 02 Jan 2024
- What Do You Think?
Do Boomerang CEOs Get a Bad Rap?
Several companies have brought back formerly successful CEOs in hopes of breathing new life into their organizations—with mixed results. But are we even measuring the boomerang CEOs' performance properly? asks James Heskett. Open for comment; 0 Comments.
- 28 Nov 2023
- Book
Economic Growth Draws Companies to Asia. Can They Handle Its Authoritarian Regimes?
The efficiency of one-party governments might seem appealing, but leaders need a deep understanding of a country's power structure and "moral economy," says Meg Rithmire. Her book Precarious Ties: Business and the State in Authoritarian Asia explores the delicate relationship between capitalists and autocrats in the region.
- 07 Nov 2023
- Cold Call Podcast
How Should Meta Be Governed for the Good of Society?
Julie Owono is executive director of Internet Sans Frontières and a member of the Oversight Board, an outside entity with the authority to make binding decisions on tricky moderation questions for Meta’s companies, including Facebook and Instagram. Harvard Business School visiting professor Jesse Shapiro and Owono break down how the Board governs Meta’s social and political power to ensure that it’s used responsibly, and discuss the Board’s impact, as an alternative to government regulation, in the case, “Independent Governance of Meta’s Social Spaces: The Oversight Board.”
- 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.”
- 02 May 2023
- What Do You Think?
How Should Artificial Intelligence Be Regulated—if at All?
Some AI pioneers say the technology could be a risk to humanity, and some governments have taken steps to rein it in. But who should set the rules and what details must they consider? asks James Heskett. Open for comment; 0 Comments.
- 24 Apr 2023
- HBS Case
What Does It Take to Build as Much Buzz as Booze? Inside the Epic Challenge of Cannabis-Infused Drinks
The market for cannabis products has exploded as more states legalize marijuana. But the path to success is rife with complexity as a case study about the beverage company Cann by Ayelet Israeli illustrates.
- 21 Apr 2023
- Research & Ideas
The $15 Billion Question: Have Loot Boxes Turned Video Gaming into Gambling?
Critics say loot boxes—major revenue streams for video game companies—entice young players to overspend. Can regulators protect consumers without dampening the thrill of the game? Research by Tomomichi Amano and colleague.
- 31 Mar 2023
- Research & Ideas
Can a ‘Basic Bundle’ of Health Insurance Cure Coverage Gaps and Spur Innovation?
One in 10 people in America lack health insurance, resulting in $40 billion of care that goes unpaid each year. Amitabh Chandra and colleagues say ensuring basic coverage for all residents, as other wealthy nations do, could address the most acute needs and unlock efficiency.
- 28 Mar 2023
- Research & Ideas
The FDA’s Speedy Drug Approvals Are Safe: A Win-Win for Patients and Pharma Innovation
Expediting so-called breakthrough therapies has saved millions of dollars in research time without compromising drug safety or efficacy, says research by Ariel Stern, Amitabh Chandra, and colleagues. Could policymakers harness the approach to bring life-saving treatments to the market faster?
- 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?
- 14 Mar 2023
- In Practice
What Does the Failure of Silicon Valley Bank Say About the State of Finance?
Silicon Valley Bank wasn't ready for the Fed's interest rate hikes, but that's only part of the story. Victoria Ivashina and Erik Stafford probe the complex factors that led to the second-biggest bank failure ever.
- 14 Feb 2023
- Cold Call Podcast
Does It Pay to Be a Whistleblower?
In 2013, soon after the US Securities and Exchange Commission (SEC) had started a massive whistleblowing program with the potential for large monetary rewards, two employees of a US bank’s asset management business debated whether to blow the whistle on their employer after completing an internal review that revealed undisclosed conflicts of interest. The bank’s asset management business disproportionately invested clients’ money in its own mutual funds over funds managed by other banks, letting it collect additional fees—and the bank had not disclosed this conflict of interest to clients. Both employees agreed that failing to disclose the conflict was a problem, but beyond that, they saw the situation very differently. One employee, Neel, perceived the internal review as a good-faith effort by senior management to identify and address the problem. The other, Akash, thought that the entire business model was problematic, even with a disclosure, and believed that the bank may have even broken the law. Should they escalate the issue internally or report their findings to the US Securities and Exchange Commission? Harvard Business School associate professor Jonas Heese discusses the potential risks and rewards of whistleblowing in his case, “Conflicts of Interest at Uptown Bank.”
- 14 Feb 2023
- HBS Case
Is Sweden Still 'Sweden'? A Liberal Utopia Grapples with an Identity Crisis
Changing political views and economic forces have threatened Sweden's image of liberal stability. Is it the end of the Scandinavian business-welfare model as we know it? In a case study, Debora Spar examines recent shifts in Sweden and what they mean for the country's future.
- 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.”
- 04 Oct 2022
- Cold Call Podcast
Cold Call: Corporate Governance and Growth Strategy at Capital SAFI
Jorge Quintanilla Nielsen started the independent asset management firm Capital SAFI in 2007. Now a leader in Bolivia’s closed-end funds industry with a total of $430 million in assets under management, Quintanilla planned to expand into other countries, like Peru and Colombia. He knew that governance would be one of the main aspects potential partners would evaluate. Capital SAFI’s board had evolved over time with the establishment of a governance committee, an assessment process for the board, professional development offerings for board members, tools to manage governance risk, and succession plans for board members and company executives. Would local and foreign investors be impressed by those measures or were additional improvements needed? Professor V. G. Narayanan discusses the importance of corporate governance in his case, “Building the Governance to Take Capital SAFI to the Next Level.”
When It Comes to Climate Regulation, Energy Companies Take a More Nuanced View
Many assume that major oil and gas companies adamantly oppose climate-friendly regulation, but that's not true. A study of 30 years of corporate advocacy by Jonas Meckling finds that energy companies have backed clean-energy efforts when it aligns with their business interests.