From the Editor
In a surprising finding, researchers report that female and male chief executives of public companies are paid about the same. “Revisiting the Gender Gap in CEO Compensation” looked at compensation for corporate leaders at 2,282 companies from 1996 to 2014, and found no “significant difference.” The study’s authors suggest that the CEO pay gap may have closed up because chief executives of public companies are so prominent. “We think it is a visibility issue,” co-author Vishal K.
“A stalled revolution”—that’s what the Center for American Progress called women’s professional advancement in a 2017 report, “The Women’s Leadership Gap.” Whitney Wolfe Herd, cofounder and CEO of Bumble, calls up this conclusion as the jumping off point for her blog, “The Business Case (and Plan) for Gender Equality.” She recites the dismal stats (“women held only 18% of board seats
What does a startup need to know about CSR? How does including a “give back” element in its mission build brand trust, loyalty, and ultimately, sales? Can CSR be used authentically as a tool that drives scale? Charlie Wright, co-founder of Eventerprise, has some answers to those questions, based on a social project called “Africa’s Got Digital Talent” embedded in his business.
“Why don’t we get credit for all the good things we do?” asked a CEO of Mark Kramer. As a cofounder and a managing director of the social-impact consulting firm FSG and a lecturer at Harvard Business School, Kramer’s answer in the Harvard Business Review sounds authoritative: companies err in using a one-size-fits-all strategy in communications.
The many elements of a company’s supply chain make it a challenge to organize. Where to start, how to connect all the moving parts, and, in integrating sustainability, how to ensure best practices? DNV GL, a global quality assurance and risk management company, recently surveyed its customers in Europe, Asia, and the Americas on supply chain sustainability. The company identified 60 companies that it considers to be leaders.
Here’s some good news: awareness of climate change in business is high. A CDP – Climate Disclosure Standards Board report finds that eight in 10 companies include at least one board member who oversees climate-related risks.
It’s proxy season again, when shareholders in public companies can file resolutions on issues they would like considered at annual company meetings. A new report offers a look at 2017’s proxy efforts, and a preview of those to come in 2018. Proxy Preview 2018 gives an overview of the more than 400 shareholder resolutions that were filed last year; more than 80 were directed toward questions re. climate change and how companies planned to address it.
Of the many statements by companies and CEOs about their positions on gun control, the open letter by David Labistour, CEO of Mountain Equipment Co-op, stands out for its clear expression of corporate social responsibility. “Demonstrating leadership and leveraging the power of community are among MEC’s core values.
A new disruptor is entering the healthcare sector. Apple is launching a network of medical clinics for its employees, the AC Wellness Network. Apple’s move follows the group initiative of Amazon, Berkshire Hathaway, and JPMorgan Chase to create a healthcare service for their collective one million employees.
The CEO of Merck, Kenneth C. Frazier, has spoken up about the statement he made last year when resigning from the President’s American Manufacturing Council.
Sustainalytics has released “10 for 2018,” a report that evaluates risks and opportunities in the coming year. On the upside, Sustainalytics finds that ESG-driven investing will continue to increase in 2018. Global responsible investing now totals $23 trillion, a rise of 25 percent since 2014, according to the Global Sustainable Investment Alliance.
Despite recent policy decisions by the Trump Administration to phase out subsidies for clean power and to impose high tariffs on imported solar panels, Xcel Energy is betting on new—and big—power plants that use wind and solar for their energy sources. Xcel, Colorado’s largest utility, has millions of customers across eight Midwestern states, from Texas to Michigan, so any decision it makes will have a big impact on future energy strategy.
Just when you thought any new healthcare policy was destined to go nowhere, churned between rigid politics and traditional practices, there’s suddenly a breakthrough. The announcement by Amazon, Berkshire Hathaway, and JPMorgan Chase that they would form an independent healthcare company for their 1.2 million employees qualifies as a seriously out-of-the-box business model disruptor.
Ray Dalio wants to see more “social impact investing.” Yes, that Ray Dalio, author of Principles: Life & Work, a best-selling business book that proselytizes for “radical transparency” as guidelines for his hard-charging, high-octane hedge fund firm. As the founder, chairman, and CIO of the $160 billion Bridgewater, the world’s largest hedge fund, Dalio’s comments carry an equally outsized weight.
Investors are focusing on the healthcare sector, for a simple reason: “It's a high-growth sector that can deliver massive returns,” reports The Motley Fool, a financial investment advisory. But in a climate of radical disruption of traditional business models and ongoing uncertain policies going forward, making smart investment choices is a dicey job.
The trending topic of socially responsible investment has gotten yet another validating vote from an authoritative financial news source. In the first of a three-part series, The Economist’s “Sustainable Investment Joins the Mainstream” article focuses on the impact of the upcoming millennial generation on SRI.
Sustainability is being adopted by every sector of business. The wine industry is among the less obvious businesses to incorporate environmentally friendly and socially responsible practices. A combination of market forces—chiefly, rising consumer demand—and new requirements by buyers and sellers, from supermarkets to retail chains and restaurants are behind the shift, according to Sandra Taylor, author of The Business of Sustainable Wine.
Satya Nadella’s Hit Refresh is being touted as “Business Book of the Year,” and it’s easy to see why. The Microsoft CEO outlines an innovative and inspirational approach to leading a global corporation in the 21st century. “Anything is possible for a company when its culture is about listening, learning, and harnessing individual passions and talents to the company’s mission. Creating that kind of culture is my chief job as CEO.” Nadella outlines a three-point program that any company could follow with great benefit. “First, when we talk to customers, we need to listen.
The latest chapter in the unfolding Unilever saga has been published. An update in the Financial Times outlines CEO Paul Polman’s tale of pushback against a hostile takeover attempt by Kraft Heinz. It describes a classic struggle of long-term sustainability strategy vs. short-term focus on share price. Kraft Heinz, managed by 3G, a private equity firm, is known for severe cost cutting to produce immediate high returns.