Management

YOUR ROLE IN STRATEGIC MANAGEMENT

Peter Drucker is viewed by many as the father of modern management thinking.  He once said: “Management is doing things right; leadership is doing the right things.”   Therefore, Strategic Management must be doing the strategic things right.  Chapter 10 discussed several aspects of this, including Corporate Responsibility, Ethics, and Decision Making Influences (including generational orientations affect on how people see the world).  The podcast about sustainability as a strategy talks about incorporating sustainability to address three specific challenges for every company.  The other content includes additional ideas about these issues of responsibility, ethics and strategic decisions.

 How do these ideas affect how you would develop a strategic plan, such as required in the Final Project? Should they be included in a strategic plan? Why or why not?

Learning Activity #2

MARKETS LOOK AT COMPANIES' CSP and ESG ACTIVITY -- IS IT IMPORTANT?

Chapter 10 introduced the term Corporate and Social Performance (CSP).  Industry and Financial Markets have extended this view through "Environmental, Social, Governance" (ESG) metrics and several mutual funds have been created that comprise exclusively high ESG rated companies.  For example, the iShares MSCI ESG 400 index portfolio has holdings in 405 companies that are viewed this way (that list may include some the companies you are studying).  But it is not clear whether high CSP or ESG ratings, or any specific activities companies do,  contribute to shareholder value.  Look at some of the content and additional links below then answer these questions:

Do companies that "do the right thing" have sustainable competitive advantages because they do?  Does Positive CSP and ESG add value to a company?  What value and Why or why not?

Some (strongly) suggested links -- check them all out including the last one which is not part of teh standard content but a great counter point:

Blog on influence of women on corporate boards and effects on company value

https://www.msci.com/www/blog-posts/the-tipping-point-women-on/0538249725

Blog on whether high ESG companies will have higher returns:

https://www.msci.com/www/blog-posts/has-esg-affected-stock/0794561659

Week 7 Content Governance Trends at Russell 2000 Companies discusses governance issues and differences.  

http://www.ey.com/gl/en/issues/governance-and-reporting/ey-governance-trends-at-russell-2000-companies?utm_source=GEMA&utm_campaign=14OCT&utm_medium=email

Does CSR benefit the company?  And is there a downside to CSR? This very interesting and perhaps counter intuitive podcast raises the issues.  (Written transcript is at this website, or find and listen to the podcast as instructions show therein)

http://freakonomics.com/podcast/corporate-social-responsibility/