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Mind the Values Gap — and Conquer It

By R. Edward Freeman and Ellen R. Auster

Many businesses experience a values gap. This gap is a result of several factors. Business as an institution is experiencing very low levels of trust from the public. This is due to a number of well-publicized scandals as well as the dominant belief that business is concerned only with money and profits. Even when executives want to live by a set of values, it is not easy. We do not always know... CONTINUE READING

The Ordinary Investor and Private Equity

By Susan Chaplinsky

Since the financial crisis of 2007–2008, a tougher fundraising climate has led the private-equity industry to seek out “ordinary” investors, who can now access private equity through the publicly listed shares of private-equity firms. As private equity broadens its investor base, a question arises: How do the investment opportunities offered to the “little guy” compare with those of... CONTINUE READING

More Than Face Values: Have a Conversation

By R. Edward Freeman and Ellen R. Auster

Many businesses experience a values gap. This gap is a result of several factors. Business as an institution is experiencing very low levels of trust from the public. This is due to a number of well-publicized scandals as well as the dominant belief that business is concerned only with money and profits. Even when executives want to live by a set of values, it is not easy. We do not always know... CONTINUE READING

Should CEOs Take an Oath of Office?

CEOs occupy a special place in a company, in society and in the economy. Their decisions, foci and capabilities produce huge ripple effects. There are a number of precedents in the United States for leaders to take an oath when stepping into a leadership role. Local elected officials take an oath. Newly credentialed medical doctors take the Hippocratic Oath, and the U.S. president takes an oath... CONTINUE READING

Watch Out for Fairy Tale Returns

By Richard B. Evans and Carlos Santos

Richard Evans first heard the word “incubation” while a Ph.D. student at the Wharton School. As part of his dissertation, he sought to understand how some mutual funds generated fantastic returns but weren’t open to the public for investing. He called one of the investment management companies running the funds to inquire. The company told him the funds were incubating, an answer that... CONTINUE READING

The Labor Market’s Supply and Demand Game

By Peter L. Rodriguez and Gerry Yemen

The economics of the labor market rely on supply and demand — the supply of workers and the demand of the organizations who hire them (or don’t). Knowing how many people to employ at what salaries is one thing when you’re dealing with fixed quantities of a tangible product. But what about when you’re dealing with a different kind of business and yield — say, a soccer team producing... CONTINUE READING