Environmental, social, and governance (ESG) is becoming more and more important in our world today, and underlying data is vital in giving it meaning. Acting as a source of checks and balances, ESG needs a long-term view that promises the existence and sustainability of fundamental organizations over time; partnerships and stakeholder engagement are also required. Nevertheless, ESG is complex and not easily measured. Written for companies seeking to attract ESG investments and become compliant with ESG regulatory requirements, this text discusses the "what" and "why" of the matter, diving into understanding ESG, how disregarding ESG means risk, inconsistent metrics and lack of clarity, and what companies can do to be ESG-investable and ESG-compliant. This book also looks at how emerging technologies can help organize underlying ESG data and add transparency to provide accountability and a holistic view of ESG's impact. Chapter 7 discusses the role technology plays in measuring and improving ESG outcomes. Different frameworks provide context to measure sustainability components against a company's goals. Real estate and transportation-two of the largest contributors to greenhouse gas emissions-are offered as two examples of industries that benefit from the use of data monitoring to measure and influence results. Data journeys captured in a blockchain can help enhance transparency; various technologies, such as cryptography, can reduce cyber risk; and AgriTech solutions can assist in meeting the ever-growing demand for food.
Environmental, social, and governance (ESG) is becoming more and more important in our world today, and underlying data is vital in giving it meaning. Acting as a source of checks and balances, ESG needs a long-term view that promises the existence and sustainability of fundamental organizations over time; partnerships and stakeholder engagement are also required. Nevertheless, ESG is complex and not easily measured. Written for companies seeking to attract ESG investments and become compliant with ESG regulatory requirements, this text discusses the "what" and "why" of the matter, diving into understanding ESG, how disregarding ESG means risk, inconsistent metrics and lack of clarity, and what companies can do to be ESG-investable and ESG-compliant. This book also looks at how emerging technologies can help organize underlying ESG data and add transparency to provide accountability and a holistic view of ESG's impact. Chapter 8 explores various practices organizations can adopt to implement sustainability strategies. With the rise in sustainability awareness, the number of sustainability native companies will also grow; these companies have sustainability at the core of their business strategy and operations. Innovation is vital to addressing sustainable development needs, and partnerships-especially with NGOs or philanthropic organizations-can help companies promote the success of their specific goals. The role of B Corporations is briefly discussed, and ways to standardize and gather data are offered. The perspective of investors is also described.
Environmental, social, and governance (ESG) is becoming more and more important in our world today, and underlying data is vital in giving it meaning. Acting as a source of checks and balances, ESG needs a long-term view that promises the existence and sustainability of fundamental organizations over time; partnerships and stakeholder engagement are also required. Nevertheless, ESG is complex and not easily measured. Written for companies seeking to attract ESG investments and become compliant with ESG regulatory requirements, this text discusses the "what" and "why" of the matter, diving into understanding ESG, how disregarding ESG means risk, inconsistent metrics and lack of clarity, and what companies can do to be ESG-investable and ESG-compliant. This book also looks at how emerging technologies can help organize underlying ESG data and add transparency to provide accountability and a holistic view of ESG's impact. Chapter 9 offers examples of companies that have created and are focusing on sustainable strategies; some are transitioning to a circular economy. The UN Alliance for Sustainable Fashion is working to improve sustainability in the fashion industry; Uzbekistan's DAVR-BANK provides funding for micro, small, and medium enterprises (MSMEs), particularly for women-owned businesses; Thailand's Indorama Ventures recovers and recycles plastic waste; and IKEA encourages customers to have more sustainable homes. Examples with Mars and Blackrock are also described. Microsoft has collaborated with governments and other organizations to work toward several of the UN Sustainable Development Goals. Through partnerships, Microsoft is able to enhance its impact on specific communities.
Environmental, social, and governance (ESG) is becoming more and more important in our world today, and underlying data is vital in giving it meaning. Acting as a source of checks and balances, ESG needs a long-term view that promises the existence and sustainability of fundamental organizations over time; partnerships and stakeholder engagement are also required. Nevertheless, ESG is complex and not easily measured. Written for companies seeking to attract ESG investments and become compliant with ESG regulatory requirements, this text discusses the "what" and "why" of the matter, diving into understanding ESG, how disregarding ESG means risk, inconsistent metrics and lack of clarity, and what companies can do to be ESG-investable and ESG-compliant. This book also looks at how emerging technologies can help organize underlying ESG data and add transparency to provide accountability and a holistic view of ESG's impact. Chapter 10 discusses how ESG may look in the future. There have been many different ESG standards and frameworks, but the various standards bodies announced in 2020 that the differing reporting standards are going to merge to give all those involved a clearer choice of lenses to evaluate decisions. A standardized level of granularity is also critical in determining ESG risks consistently. Emerging technologies can organize ESG data and then present it in a way that fits the needs of ESG initiatives. In implementing ESG strategies, top-down approaches are needed to integrate ESG at all levels of an organization, and specific management responsibilities should be established. Examples of how various countries and regions are leading in sustainability are offered. As ESG standards are better understood, sustainability native startups will grow and evolve.
Founded in 1996, Dalian Leasun Food Co., Ltd. had become one of the largest canned food manufacturers in northeast China by 2020. In 2016, it began a digital transformation, adopting digital technologies such as data mining and cloud computing. The company also revised its internal operations and adopted an omnichannel sales strategy. Digital transformation enabled Dalian Leasun Food Co., Ltd. to move beyond the traditional retail and distribution market, which was becoming oversaturated. Its successful transition also helped the company maintain a stable sales growth rate during the COVID-19 pandemic. The next stage for its digital transition however, presented a dilemma. One option for the chairman of the company was to develop a customer-oriented platform and create value for customers. The other option was to digitalize the company's supply chain and internal management system. The chairman had to decide which direction to follow.
After almost a year of rebranding and renovations, the Bitter Sisters Brewery opened to rave reviews on February 14, 2020, in Calgary, Alberta. Just 29 days later, the COVID-19 pandemic would force the brewery's doors shut for over three months. Two further closures would come in 2020, and times remained uncertain as of December of that year. The owners had to pivot-and quickly-to ensure the viability of their business in volatile times.
This case is about the growth of one of China's top design companies. The design trade is a knowledge-intensive and traditional industry. The protagonist Jia Wei started LKK in 2004. Following the industry's traditional organizational model, over 10 years he managed to grow the company's staff size to over a thousand and reach the peak of the industry. Jia's understanding of how the organization structure could unleash output upgraded several times. Owing to the reorganizations, LKK was able to reach 100 per cent annual growth rate. The story begins with Jia graduating from college and tells of the founding and evolution of LKK's organizational structure step-by-step. It allows participants to clearly see the relationship between organizational structure changes and enterprise growth. The goal is to illustrate that there is no ultimate, static organizational structure that necessarily leads to rapid development. The authors also try to use this material to illustrate that organizational culture needs to evolve along with the organizational structure. In addition, this case features change leadership.
The case describes the challenges that George Diaz, Chief Operating Officer of Simplex Bank in Peru faces, regarding the operational inefficiencies and low service level of its telephone banking services (Simplexphone). The fundamental problem of the case is what segment of the organization should be intervened (new employees, medium experience, or seniors) and what measures should be implemented to reduce the average time of attention (ATH), from 358 seconds to 200 seconds (competitor´s standard). The case describes the organization, the processes, systems, and call center's human management processes. The case presents three possible options to improve AHT: 1) redefining recruitment profiles and processes; (2) reengineering training programs and manuals (3) establishing a robust performance evaluation system. By focusing on the specific question of reducing AHT, the student is given the opportunity to diagnose possible causes and propose specific measures to remedy the situation. The case is accompanied by an Excel database that must be shared as support prior to the sessions, so that the students can generate diagnoses and test hypotheses about the possible problems faced by the organization.
Employers rely heavily on self-report surveys and interviews to assess organizational culture. But on their own, such tools provide a flawed view. By combining them with analysis of informal networks, leaders can gain a richer understanding of how new values take root locally. This allows them to see more precisely where desired behaviors are communicated, modeled, observed, and adopted on the ground. With that level of insight, leaders can more effectively target their change efforts in five key ways.
In November 2019, the iconic U.S. jeweler Tiffany agreed to be acquired by the luxury goods conglomerate LVMH. The $16.6 billion transaction was scheduled to close in mid-2020. However, in 2020, the global COVID-19 pandemic took a toll on the luxury goods sector. In September 2020 LVMH announced that it was backing out of the deal. Tiffany filed suit against LVMH. LVMH countersued, arguing that the pandemic triggered a material adverse effect (MAE) clause included in the merger agreement.
For manufacturers, remaining competitive depends on their ability to digitalize their business models (i.e., offer digital and digitally enhanced products and services). To achieve this, they must engage with new digital partners and help their existing suppliers, partners, and other stakeholders to digitalize. Orchestrating this growing ecosystem is challenging. Manufacturers struggle with this endeavor because of specific barriers associated with their existing legacy business model and related to their lack of digital vision, product-centric value chains, and a bias toward firm-centered profit formulas. To overcome these barriers, leading manufacturers have developed new approaches to ecosystem orchestration.
In July 2021, Duolingo became one of the few mission-driven education-technology companies to list on the Nasdaq Stock Exchange in the US. Founded in 2011 by Luis von Ahn, a Carnegie Mellon professor from Guatemala, and his doctoral student, Severin Hacker, the start-up was born with a social mission to make language learning universally available. A large part of Duolingo's value proposition was underpinned by free access to all content, game-like lessons, and keeping learners motivated - a recipe that boosted user retention and increasingly, the conversion to paid subscription. Duolingo had enjoyed resounding success, pulling in close to 40 million active monthly users around the globe on its platform. Not only did the firm's value creation resonate with users (including Bill Gates and Syrian refugees), its exponential growth and positive free cash flow indicating the company's liquidity - had attracted major investors including Google. In a space where listed firms played to the tune of investors' quest for more revenue, how could Duolingo balance public markets' demands for growth and profitability while maintaining its original mission of free education moving forward?
City Sealcoating CEO Keith Chaney had just publicly called out the Boston Chamber of Commerce for their slow progress on their supplier diversity program, Pacesetters. Established in 2018 by regional business leaders, Pacesetters was supposed to facilitate relationships between large purchasing organizations and minority-owned businesses in the greater Boston area, eventually leading to procurement contracts for those minority-owned businesses. It was designed as an approach to fix the worsening racial wealth gap in Boston; however, after 2 years of operation, the program did not deliver as many-including the Boston Chamber of Commerce-had hoped. Now nearing its third year, Boston Chamber of Commerce President & CEO James E. Rooney wondered how to best change the program, helping it deliver on its promise to, within a generation, close the racial wealth gap. Chaney, a minority business owner and Pacesetters participant, was skeptical.
The Great Depression was, by far, the worst economic contraction of the twentieth century, and some of the most important ideas about both fiscal and monetary policy in the second half of the century were developed in response to it. The economic collapse, which started with a sudden stock market crash in the United States, had quickly assumed worldwide proportions. A combination of deflation, massive unemployment, dramatic declines in industrial production, numerous banking panics, and catastrophic increases in poverty and homelessness led many to doubt the system of capitalism itself. Old remedies and new cures had been applied with varying degrees of success in different countries, but ongoing diatribes over World War I reparations and debts obstructed any form of meaningful cooperation in the international arena. Nations turned inward, and while world trade collapsed, more than one sought salvation at the extremes of the political spectrum.
This case explores the fuel hedging strategy of Cathay Pacific Airways Ltd. (Cathay, HKEx: 293). Cathay's operating policy was to reduce exposure to fuel price risk by hedging a percentage of its expected fuel consumption. Cathay used fuel derivatives that were economically equivalent to forward contracts to achieve its desired hedging position. Because of the unexpected reductions in airflight capacity due to the COVID-19 pandemic, Cathay's projected fuel consumption far exceeded its actual consumption. Fuel hedging losses skyrocketed. Comparing 2020 to 2019, the total fuel cost decreased by HKD18.4bn or 61.8%. Despite the drop in gross fuel costs (i.e., actual costs on fuel consumption) by HKD21.3bn or 71.9%, the fuel hedging losses increased by an astonishing HKD2.9bn or 28.9 times. According to management, this increase in hedging losses was the result of the steep decline in both fuel usage and fuel prices. In 2019, fuel hedging losses were only -2.9% of the operating profit, whereas in 2020, fuel hedging losses contributed to 16.6% of Cathay's operating losses. In this case, students will grapple with questions about the accounting treatment and financial analysis surrounding hedging transactions. Students will be asked about the major types of hedges and their accounting treatments. Further, students will be asked about the factors affecting the effectiveness of a hedging transaction and, hence, how this effectiveness can impact the accounting treatment.
Abbey Wemimo and Samir Goel founded Esusu in 2018 to help low-to-moderate-income renters build credit history. Esusu, a for-profit impact focused venture, collected rental payments from property managers and reported this data to major credit bureaus, which helped renters improve their credit scores. In April 2020, only six months after closing their first institutional round of capital, New York state issued a lockdown to prevent the spread of the COVID-19 pandemic. During this period, the Esusu leadership team addressed numerous priorities-transitioning their team to operate online, managing employee health concerns, calling clients and investors while still running the company's day-to-day operations. Ultimately, Wemimo and Goel must decide whether to cut costs in order to keep Esusu's existing business afloat or build new products and leverage new partnerships to serve renters and property managers during a time of crisis. In this case, students are encouraged to examine the history and evolution of the credit-scoring models used in the U.S. The case also explores the impact that a lack of credit records may have on American families in particular among minority groups. The case chronicles how Esusu sought to tackle these challenges in a time of crisis, as well as the strategic decisions they faced along the way.