Corporate Sustainability: First Evidence on Materiality Mozaffar Khan, George Serafeim, and Aaron Yoon (HBS)
Khan, Mozaffar N., George Serafeim, and Aaron Yoon. "Corporate Sustainability: First Evidence on Materiality." Harvard Business School Working Paper, No. 15-073, March 2015.
An increasing number of companies make sustainability investments, and an increasing number of investors integrate sustainability performance data in their capital allocation decisions. To date however, the prior academic literature has not distinguished between investments in material versus immaterial sustainability issues. We develop a novel dataset by hand-mapping data on sustainability investments classified as material for each industry into firm-specific performance data on a variety of sustainability investments. This allows us to present new evidence on the value implications of sustainability investments. Using calendar-time portfolio stock return regressions we find that firms with good performance on material sustainability issues significantly outperform firms with poor performance on these issues, suggesting that investments in sustainability issues are shareholder-value enhancing. Further, firms with good performance on sustainability issues not classified as material do not underperform firms with poor performance on these same issues, suggesting investments in sustainability issues are at a minimum not value-destroying. Finally, firms with good performance on material issues and concurrently poor performance on immaterial issues perform the best. These results speak to the efficiency of firms’ sustainability investments, and also have implications for asset managers who have committed to the integration of sustainability factors in their capital allocation decisions.
Ben Horowitz is one of the founders of one of the top VC firms, a16z, in the world (some say the best VC firm) and author of one of the best books on entrepreneurship written by a "practitioner" (some say the best book).
Bill McDermott plans to continue as head of the world’s largest business software provider
SAP chief executive Bill McDermott has lost an eye after falling on broken glass, but intends to continue as head of the world’s largest business software provider by sales, the company said on Thursday.
Mr McDermott, 54, who became co-chief executive in 2010 and sole top manager last year, suffered the injury in July while staying with relatives in the US and has since been unable to fly...
A leadership and career manifesto told through the narrative of one of today’s most inspiring, admired, and successful global leaders.
In Winners Dream, Bill McDermott—the CEO of the world’s largest business software company, SAP—chronicles how relentless optimism, hard work, and disciplined execution embolden people and equip organizations to achieve audacious goals.
Growing up in working-class Long Island, a sixteen-year-old Bill traded three hourly wage jobs to buy a small deli, which he ran by instinctively applying ideas that would be the seeds for his future success. After paying for and graduating college, Bill talked his way into a job selling copiers door-to-door for Xerox, where he went on to rank number one in every sales position he held and eventually became the company’s youngest-ever corporate officer. Eventually, Bill left Xerox and in 2002 became the unlikely president of SAP’s flailing American business unit. There, he injected enthusiasm and accountability into the demoralized culture by scaling his deli, sales, and management strategies. In 2010, Bill was named co-CEO, and in May 2014 became SAP’s sole, and first non-European, CEO.
Colorful and fast-paced, Bill’s anecdotes contain effective takeaways: gutsy career moves; empathetic sales strategies; incentives that yield exceptional team performance; and proof of the competitive advantages of optimism and hard work. At the heart of Bill’s story is a blueprint for success and the knowledge that the real dream is the journey, not a preconceived destination.
Damien Viel, 41 ans, n'est pas étranger au secteur du Web: il est l'ancien directeur des ventes pour YouTube en Europe du Sud et l'Est, en Afrique et au Moyen-Orient. Il a également travaillé au sein de la régie publicitaire de M6 et chez L'Oréal. Un profil touche-à-tout qui doit faciliter le développement de Twitter en France et plus particulièrement ses relations avec les entreprises et les marques
UK business leaders across industries identify a clear challenge in the lack of access to the right talent and skills. UK CEOs are the most concerned compared with their global counterparts about the impact on growth of a scarcity of the right skills and the lack of access to talent which, at 84%, registers at 20 percentage points higher than the results last year.
Compared with many of their European counterparts, CEOs in the UK are very obviously concerned about the negative impact that the skills shortage may have, with 84% citing it as a key business threat. But in Germany, for example, only just over half (54%) of CEOs are concerned, and in France levels of anxiety about this issue are even lower, with only 37% expressing concern about the availability of the key skills they need.
Addressing the skills gap
UK CEOs recognise that they cannot bridge the talent gap alone. Two thirds (67%) believe that a priority of government should be to create a skilled and adaptable workforce, up from 60% last year. Our survey highlights the need for the government, business and education sectors to work together to enable the UK to prosper in the long-term.
Revisiting the talent pool?
In the absence of more rapid progress through education and training (necessarily a development that can only take place over the relatively long term) UK CEOs will need to explore other sources and strategies to secure the talent they need...
Lou Gerstner will always be known as the man who saved IBM after resuscitating, then reinvigorating, the near bankrupt company when he took over as chairman and CEO in 1993. Gerstner’s career, though, spanned 43 years which also included more than a decade at McKinsey, senior positions at American Express, and four years as chairman and CEO of RJR Nabisco. Since stepping down from IBM in 2002 he has continued to lead an active “portfolio” life in education, healthcare, and private equity. In this conversation with former McKinsey managing director Ian Davis, he reflects on the DNA of companies that keep on creating value.
The Quarterly: How do you think about corporate longevity? Does it help executives if their companies explicitly aim to be around a long time, by which I mean a generation or more?
Why are CEOs so bad at social media? Professor of Corporate Communication Paul Argenti offers tips on how CEOs can improve their social media presence - 67 percent of CEOs have no social media presence.