The Movement for Social*Business Impact
Our major corporate sponsor
Origin and Mission
In November 2016, HEC Paris launched an ambitious initiative: the Movement for Social*Business Impact (MS*BI)
This movement aims at contributing to a more inclusive economy, where businesses seek to maximize their social impact together with their economic performance.
The Movement for Social*Business Impact is a continuation of the HEC Paris Social Business/Enterprise and Poverty Chair, launched and funded by Danone, Schneider Electric, and Renault in 2008. co-chaired by 2006 Peace Nobel Prize Professor Muhammad Yunus and Martin Hirsch, former High Commissioner for Active Solidarity against Poverty in France, and currently Head of the Greater Paris University Hospitals. The Chair in turn supported the creation of the Action-Tank Social & Business, designed to incubate inclusive business models fighting poverty in France. Since 2010, the Action-Tank has helped develop and implement innovative poverty alleviation projects, bringing together companies, NGOs, public and academic authorities.
MS*BI focuses on four key actions :
- This movement aims at contributing to a more inclusive economy, where businesses seek to maximize their social impact together with their economic performance.
- Catalyzing world-class research on social business by building on partnerships with the best international academic teams.
- Strengthening and broadening teaching opportunities focused on training a new generation of managers.
- Accelerating the deployment and scaling up of social business projects incubated in France.
- Providing institutional resources to develop international social business incubation models, which offer essential goods and services to the poorest populations.
Rethinking Firm's Actions and Their Impact
The M*BI strives through its differents actions to comprehend and offer the means to economic actors to maximize their societal impact.
We replicate and complement a recent study that showed that the events of a firm's addition, continuation, or deletion in a major sustainability index (Dow Jones Sustainability World Index, DJSI) has little impact on stock market corrections (Hawn et al., 2018).
First, we refine the comparison set that was previously used by following the DJSI methodology in order to compare across more observationally-equivalent firms in terms of CSR orientation, and find convergent results, including for instance in small increase of 50 basis points in stock market performance for addition to the DJSI index over the period 2010-2015.
Second, we expand the analysis to other outcomes and find that not only are investors valuing sustainability more and more but that sustainability attracts more attention from analysts (addition to or continuation on this index adds between two and four analysts in the more recent period) and significantly increases the volume of shares held by long-term investors (by an estimated value of 40 to 70 milliondollars following DJSI events).
Low-income workers face many constraints that are negatively affecting their subjective well-being as well as economic and social outcomes. One way to alleviate some of these constraints is through tangible improvement in short-distance geographical mobility, for instance with the provision of the new car under a low-cost leasing scheme, or by the provision of at-cost quality car maintenance.
In this interim report, we advance the theory linking short-distance geographical mobility to subjective well-being and we describe a research design that will evaluate the impact of the Renault Mobilize program, which is an intervention targeted to low-income workers (notably job-seekers) that promotes improvements in short-distance your graphical mobility.
In the theory, we emphasize the role of restrictions in mental bandwidth as a driver of poor economic and social outcomes and of lower subjective well-being. In our research design, we take advantage of a hard threshold for eligibility to the program in order to strengthen the causal interpretation of the analyses.
We define hybrid organizations as forms that exist across the boundaries of and merge elements from different organizational entities. They are social innovations at the intersection of changing state-market relations, novel institutional designs and the growing role of civil society organizations as key stakeholders to creation economic and social value.
Hybrid organizations can be sorted accordingly to their level of hybridity. Two are distinguished in this paper.
The first level is obtained when one focal organization embraces two (or more) distinct logics: economic and social objectives.
The second level of hybridity is obtained when at least two organizations from distinct sectors with distinct identities must agree on mutual interests and decide to collaborate through pooling their resources, competencies and logics.
For hybrid organization’s, it is a big challenge to create a uniting organizational Identity and can face tensions between logics. Moreover, the effects of potential conflicts between institutional demands and partners can lead to organizational paralysis or break up.
In this paper, we explore the microfoundations of hybrid organizational forms and reveal how second level hybrid organizations operate to explain when and how they are capable to take advantage of governance mechanisms- accountability and reporting systems, board composition - to internally incorporate elements of the competing logics they embody and maintain their hybrid nature over time.
In this paper, we discuss what factors contribute to a hybrid sustainability? We contribute in three ways.
We identify the cross-(sector ?) organization collaboration as a distinct type of hybridity.
We offer a comprehensive analysis of hybridity challenges and means of addressing them.
Our framework advances that appropriate organizational governance, by monitoring dual performance objectives and aligning the interests of multiple principal stakeholders , remedies to internal tensions and institutional pressures and can guarantee the survival of second order hybrid organizations.
Taken together, our proposed theoretical framework of hybrid organizations sheds new light on the novel hybrid organizational forms that retain their hybrid nature over time and continue to create value.
We provide time-consistent microfoundations to the idea that a fiscal power is needed for fiat money to be traded in economies where money is essential.
We extend a classical OLG monetary model by introducing an authority that maximizes the utility of current agents' consumption and public expenditures by imposing taxes and carrying out money market operations.
We show that, the time-consistent optimal policy selects a unique equilibrium, one in which money has real value and inflation is disconnected from any fiscal variable.
Such optimal policy provides for fiscally backed monitoring interventions occurring only out of equilibrium. However, for this result to hold taxes must be flexible. When instead taxes are fixed ex-ante, inflation responds to fiscal variables and the uniqueness of equilibrium can get lost if fiscal capacity is not sufficiently large.
Our analysis points out to the need of providing microfoundations to the authority behavior in the debate on the price level determination and offers new perspective on the importance of fiscal backing.
A large variety of courses
The S&O Institute has helped develop several programs on inclusive and social business:
S&O Institute co-created a new course last September 2021 for 350 participants every year.
The 18-hour course on Planetary boundaries provides a deeper understanding of environmental and social challenges, their interactions with the global economic system, and studies the implications for business.
The purpose of this class is to help students get a good understanding of the main environmental and social challenges the world is facing, of the complexity of the phenomena and their interactions, and the different possible scenarios to respond to these challenges.
The HEC Paris MBA curriculum combines academically-challenging courses with leadership development and experiential learning.
Among its core courses, the ETHICS and SUSTAINABILITY course considers the ethical responsibilities of managers and corporations.
Among its electives classes, an off-campus seminar in the monastery of Sereys (Haute Loire) proposes to reflect on ETHICS and PERFORMANCE. In this seminar, the participants become more conscious of the ethical stakes of their business practices and learn how to assess their responsibilities as managers. In the specific context of the monastery, they experiment a distant point of view to think and exchange about the signification of management practices and their impact.
Experiential learning is at the very heart of the MBA program. Fieldwork projects allow students to apply classroom-taught knowledge in a real world setting.
This program concentrates on the key areas of leadership, general management and running a company, while at the same time paying close attention to the specific nature of the African continent.
The focus on the stakes and challenges of a continent in transition and key sustainable development issues such as managing resources, carbon footprint and social inclusion will enable participants to acquire a greater understanding of new high performing business models that are more sustainable and inclusive.
Please find more information on the dedicated website.
Innovation and entrepreneurship play a crucial role in creating value and ensuring the success and sustainability of companies throughout the world. This is why HEC Paris has designed this online degree program to meet the specific needs of current and future business leaders in charge of innovation or business development, as well as experienced or aspiring entrepreneurs.
"Social Entrepreneurship and Change-making" is among the 10 fundamental courses. Through this course, participants will gain a brief overview of different types of entrepreneurs who create value for society and focus primarily on action-based learning; work on their own entrepreneurial project, gaining hands-on experience in transforming an idea into a sustainable business model with measurable positive impact on society and the environment; pitch to “sell your idea” to a wider public; and be inspired, equipped, and convinced that you can take action to tackle the world’s most pressing problems in an entrepreneurial manner.
More information HERE.
The economic, social and societal impact of the crisis we are all living through has made it more crucial than ever before for companies to rethink their business model and their relationship with society and the environment.
Driving the transition to sustainable development and responsible management makes more than ever, real business sense. It enables organizations to think in terms of proactive risk management, drive innovation, reinvent their business models, and create new forms of competitive advantage. Everyone, at every level of the organization, has an important role to play.
The aim of the ‘Sustainable Transition Management’ (STM) program is, therefore, to develop mindful, responsible managers and leaders who can inspire and drive transformation and, help companies to strike the right balance between positive social and environmental impact, and economic performance, and even transform today’s environmental and social challenges into business opportunities.
It has been carefully crafted to offer the greatest flexibility to build a consistent and effective approach to the strategic and functional challenges in order to design and operate the sustainable transition.
This MOOC is dedicated to social entrepreneurship, and is developed by professors of the S&O Center in partnership with the ‘Ticket for Change’ project, of which HEC Paris is a platinum partner.
The project aims to inspire and help aspiring entrepreneurs who want to make a difference in society. The MOOC is based on individual and collective action learning for each participant, through three different stages: inspiration, introspection, and implementation.