A new large-scale study links CEO influence to a 30% difference in firms’ performances in the areas of social responsibility. Interview with Georg Wernicke, Assistant Professor of Strategy and Business Policy at HEC Paris, and member of the school’s Society & Organizations Institute.
By Georg Wernicke
In this interview with Knowledge@HEC, a dozen of professors and Ph.D. students from HEC Paris share the key findings of their latest research on diversity and inclusion. They also share insights for managing one’s career in challenging contexts and give analysis on how education and the new generations can change the workplace culture.
A number of business leaders and researchers have promoted the idea that social and financial goals are complementary. The authors of a recent paper say that may be true, but if so, why aren’t all companies pursuing these dual goals? They propose ways to diminish tensions between the two aims.
By Tomasz Obloj
Recent news cast some doubts about the effects of shareholder activism on firms’ strategic orientation. Hence, the question: Do activist hedge funds help or harm the companies they target? Mark DesJardine of Pennsylvania State University’s Smeal College of Business and Rodolphe Durand of HEC Paris (members of the HEC’s Society & Organizations Institute) investigated the long-term effects of hedge fund activism on companies that get targeted by these activists. In their extensive research, they found the value of targeted companies spikes the first year after targeting but drops in later years relative to similar non-targeted companies. In addition, the authors found that being targeted by activist hedge funds put a halt to the broader investment portfolios and socially responsible efforts of companies.
By Mark Desjardine , Rodolphe Durand
Danone’s CEO had to leave his position under the pressure of increasingly powerful and influential activist hedge funds. With their controversial tactics aimed at maximizing shareholder profit, they undermine sustainability practices, which they consider wasteful. Indeed, not only do they tend to suppress the corporate social responsibility (CSR) activities of the companies they target, they also target companies with stronger CSR records in the first place, as a new study reveals. But its authors Mark DesJardine, Rodolphe Durand, and Emilio Marti also show that these companies can divert the attention of activist hedge funds, and that policymakers and socially minded investors can intervene, too.
What do companies gain when they make political contributions? HEC Paris professor of finance Alexei Ovtchinnikov and his co-authors sought to pinpoint one benefit for firms—increased innovation—and to understand the mechanisms behind it.
By Alexei Ovtchinnikov
Design thinking has been hailed as the latest strategy to gain a powerful competitive edge in both innovation and processes. But to be successful, it must involve a major cultural and organizational shift. Two researchers and Thales Chief Design Officer share the lessons from their analysis of bringing design thinking to technology giant Thales.
By Sihem Ben Mahmoud-Jouini
What we are experiencing is similar to an earthquake of strong magnitude. Everyone agrees that there will be a before and after Covid-19. Whilst this earthquake assails us all, we do have control of the choices and decisions to be made. These will determine how crippled or strengthened we will be by the end... As always in times of crisis there are losers and winners, the cards are redealt.
The propagation of the coronavirus Covid-19 and the consequent preventive measures and restrictions taken worldwide have had an impact on the global economy. In this interview, Tomasz Michalski, Associate Professor of Economics at HEC Paris, explains the effects of this recession and shares his insights on the policies just launched by France.
As the COVID-19 pandemic unfolds, we observe starkly divergent approaches being experimented across the European Union. In this interview, Alberto Alemanno, Jean Monnet Professor of European Union Law at HEC Paris, explains this lack of coordination between the governments and its consequences, and shares his insights on what could be improved in this diverse decision-making setting.
