What do Tesla and British Petroleum have in common? And how are Walmart and Patagonia similar? On most dimensions, these pairs of firms have little in common with one another—Tesla is widely recognised as a pioneering sustainability company, while BP has long been a target of environmental activism. Yet both companies have had a strong presence in the solar […]
In the last few weeks, CEOs of large American companies have publicly condemned the death of George Floyd while in the custody of the Minneapolis police. In the last few years, CEOs have been increasingly speaking on social issues, which are not directly related to their core business interests. Why are CEOs speaking on social issues, and what are […]
Companies are in a constant battle with one another to innovate and capture market share. As they do so, it is important for them to engage in two competing behaviours: exploration and exploitation.
Exploration is about discovering new opportunities and enhancing learning. This kind of activity is characterised by knowledge creation, risk taking, experimentation, and innovation. In contrast, exploitation leverages […]
Under pressure from consumers and employees, firms now compete for the most fragile commodity: goodwill
The history of business is the history of human beings trading with each other; discovering efficiencies of scale and comparative advantage, creating surplus, investing capital, and building infrastructure. In its purest form, capitalism is a sort of social and cultural glue. It’s about markets and money, trade and competition, risk and reward. It’s about the allocation of resources to […]
“Honesty is the first chapter in the book of wisdom.” That’s what Thomas Jefferson, Founding Father and third president of the United States, once said. If that’s true, then you might think that bankers are stuck on the first page, such is the public perception of them.
Following the 2008 global financial crisis, the reputation of bankers took a nosedive. […]
London-Paris, Barcelona-Madrid, Rome-Bologna – what is common among these city pairs? Surprisingly enough, travelling between these cities is faster by train than by plane. In fact, fast trains connect Europe quite well, allowing passengers to hop from city to city via rail.
Many passengers prefer taking trains over flying. One steps out at the city centre directly, wastes no time […]
In 2016 Dave Barnes, chief information and global business services officer of UPS, received a salary of $491,000 and a bonus payment of $251,000, while Pawan Verma, chief information and customer experience officer at Foot Locker, had a salary of $216,000 and a bonus of $664,000. Why in one case did the CIO receive the majority of his compensation in salary, […]
Hardly a day goes by without the national or international press publishing negative stories about social networks. Facebook has once more got problems in keeping the data of its more than two billion users under lock and key, or Mark Zuckerberg stands up another parliament in favour of a personal statement. YouTube, acting to protect children, disables the comment […]
CEOs in multi-business companies act as internal investors for business units. Our research suggests that they approach resource allocation in one of two very different ways. Liberal-leaning CEOs, seeking collaboration among units, are more likely to favour an even-handed approach when allocating resources. Conservative-leaning CEOs, seeking to spur competition, tend to favour merit-based allocations that may create large disparities […]
An economy where the highest paid business leader pockets £265 million for one year’s work, while the number of working families in poverty rises to a 20-year high, is one that needs to address its income gaps.
Denise Coates, the chief executive of gambling group Bet365, has been paid £265 million in 2017 at a time when many of those in […]
Only 5 per cent of major North American firms had a female CEO as of January 2018. (Catalyst)
Clearly women are underrepresented at the top level of corporations, but the reasons for this are less clear. In a recent article, we investigate two different paths to the scarcity of female CEOs:
Women are appointed as CEO less often; and/or
Women are […]
A puzzling feature of chief executive officer (CEO) compensation is “pay for luck”. Why are CEOs often rewarded when their firms perform well for reasons that are beyond their control? The dominant advice from academia is to do just the opposite: pay CEOs based on corporate outcomes they can substantially influence, which gives them incentives to make the good […]
In a recent Vox column, six antitrust consultants describe the European Commission’s case against Android, hailing it as a “milestone” of antitrust for the telecommunications industry (Caffarra et al., 2018). In fact, it is more of a millstone than a milestone.
The colloquial definition of “millstone” is a “heavy burden”, and of course the case is a burden for Google. But it is […]
We all know about the experts who know so much about so little, and so little about so much. Scientists and artists are prime examples of specialised occupations whose members are suspected of being impractical in daily life.
Managers, on the other hand, are supposed to have broad and practical knowledge, and to be flexible in what they do. These […]
Less than week after the European Commission hit Google with a record £3.9 billion fine for abusing its dominant position in Android, Google’s quarterly earnings report came in: a noticeable dip in profits — down to $2.8 billion from the expected $7.8 billion—but a rise in share price—up almost 6 per cent.
Investors seemed to shrug off the giant fine […]
It was the first meeting of a publicly traded gun company following the Feb. 14 school shooting in Parkland, Fla., that left 17 dead and sparked a wave of anti-gun activism. And the shareholders of Sturm Ruger delivered a surprise.
A coalition of Catholic nuns backed by the giant asset management firm BlackRock pushed through a proposal – over management […]