Values and Beliefs →
- 17 Dec 2009
- Working Paper Summaries
Integrity: Without It Nothing Works
"An individual is whole and complete when their word is whole and complete, and their word is whole and complete when they honor their word," says HBS professor Michael C. Jensen in this interview that appeared in Rotman: The Magazine of the Rotman School of Management, Fall 2009. Jensen (and his coauthors, Werner Erhard and Steve Zaffron) define and discuss integrity ("a state or condition of being whole, complete, unbroken, unimpaired, sound, in perfect condition"); the workability that integrity creates for individuals, groups, organizations, and society; and its translation into organizational performance. He also discusses the costs of lacking integrity and the fallacy of using a cost/benefit analysis when deciding whether to honor your word. Key concepts include: The personal and organizational benefits of honoring one's word are huge—both for individuals and for organizations—and generally unappreciated. We can honor our word in one of two ways: by keeping it on time and as promised, or if that becomes impossible, by owning up to the parties counting on us to keep our word in advance and cleaning up the mess our failure to keep our word creates in their lives. By failing to honor our word to ourselves, we undermine ourselves as persons of integrity, and create "unworkability" in our lives. Integrity is a necessary but not sufficient condition for maximum performance. There are unrecognized but significant costs to associating with people and organizations that lack integrity. Closed for comment; 0 Comments.
- 25 Nov 2009
- Working Paper Summaries
The Devil Wears Prada? Effects of Exposure to Luxury Goods on Cognition and Decision Making
Gandhi once wrote that "a certain degree of physical harmony and comfort is necessary, but above a certain level it becomes a hindrance instead of a help." This observation raises interesting questions for psychologists regarding the effects of luxury. What psychological consequences do luxury goods have on people? In this paper, the authors argue that luxury goods can activate the concept of self-interest and affect subsequent cognition. The argument involves two key premises: Luxury is intrinsically linked to self-interest, and exposure to luxury can activate related mental representations affecting cognition and decision-making. Two experiments showed that exposure to luxury led people to think more about themselves than others. Key concepts include: Luxury does not necessarily induce people to be "nasty" toward others but rather causes them to be less concerned about or considerate toward others. Experiment 1 showed that when primed with luxury, people are more likely to endorse self-interested business decisions (profit maximization), even at the expense of others. Experiment 2 further demonstrated that exposure to luxury is likely to activate self-interest but not the tendency to harm others. Exposure to luxury goods may activate a social norm that it is appropriate to pursue interests beyond a basic comfort level, even at the expense of others. It may be this activated social norm that affects people's judgment and decision-making. Alternatively, exposure to luxury may directly increase people's personal desire, causing them to focus on their own benefits such as prioritizing profits over social responsibilities. Closed for comment; 0 Comments.
- 05 Oct 2009
- Research & Ideas
The Vanguard Corporation
In the book SuperCorp, Rosabeth Moss Kanter lays out a model for 21st-century companies that care as much about creating value for society as they do value for shareholders and employees. The best part: It pays to be good. Key concepts include: Companies with a very strong sense of purpose use it to guide and speed up innovation. All the vanguard companies studied, save one, outperformed their peers during the recession. Leaders must engage employees in discussions around principles and the applications to the business. Vanguard companies are dynamic places to work, with employees having a say on when and where they work. Closed for comment; 0 Comments.
- 24 Aug 2009
- Research & Ideas
SuperCorp: Values as Guidance System
In her new book SuperCorp, professor Rosabeth Moss Kanter details how vanguard companies such as IBM, Cemex, and Omron are rewriting the nature of the business enterprise and how firms will gain sustainable prosperity in the 21st century. Read our excerpt. Key concepts include: Grounding strategy in a sense of wider societal purpose provides many significant advantages and only a few potential disadvantages. Vanguard companies gain both a moral compass and an entire guidance system. To be strategic, a principles-based initiative must contribute to the fundamental way the company makes money, with customers and clients in mind. Closed for comment; 0 Comments.
- 03 Aug 2009
- Research & Ideas
Corporate Social Responsibility in a Downturn
Financial turmoil is not a reason to scale back on CSR programs—quite the opposite, says HBS professor V. Kasturi "Kash" Rangan. As a marketing scholar Rangan is optimistic about strategic CSR efforts that provide value in communities and society. Q&A Key concepts include: Corporate social responsibility (CSR) means "activities undertaken by businesses that enhance their value in the community and society and thus benefit their reputation and brand," says Rangan. CSR should be treated as a business discipline and practiced with the same professionalism and rigor as other aspects of a firm's strategy. "For example, many of the programs that come under the umbrella of 'climate change' have the potential to benefit the environment as well as a company's bottom line," Rangan adds. Good examples are the early childhood literacy initiative of PNC, a financial services organization based in Pittsburgh, and the 10,000 Women initiative of Goldman Sachs, which facilitates a business education for underserved women. Companies should classify their CSR programs according to the ability to enhance and even transform the firm's business practices. Closed for comment; 0 Comments.
- 22 Dec 2008
- Research & Ideas
10 Reasons to Design a Better Corporate Culture
Organizations with strong, adaptive cultures enjoy labor cost advantages, great employee and customer loyalty, and a smoother on-ramp in leadership succession. A book excerpt from The Ownership Quotient: Putting the Service Profit Chain to Work for Unbeatable Competitive Advantage by HBS professors Jim Heskett and W. Earl Sasser and coauthor Joe Wheeler. Closed for comment; 0 Comments.
- 06 Nov 2008
- Op-Ed
Selling Out The American Dream
The American Dream has been transformed from an embodiment of the country's core values into a crass appeal to materialism and easy gratification. One result: the current economic crisis, says professor John Quelch. The federal government isn't helping. Key concepts include: Underpinning the collapse of the housing bubble is a demand-side problem: the American Dream hijacked. Politicians on both sides have been equally culpable in defining the American Dream in material terms. Marketers also took advantage. Citizens who acted responsibly have seen the values of their homes and 401(k) plans collapse. Those who acted irresponsibly have barely been inconvenienced. Closed for comment; 0 Comments.
- 20 Aug 2008
- Op-Ed
The Time is Right for Creative Capitalism
Bill Gates has it right. Business is the most powerful force for change in the world right now and gives the idea of creative capitalism real power, writes Harvard Business School Professor Nancy F. Koehn. Open for comment; 0 Comments.
- 19 Nov 2007
- Lessons from the Classroom
Teaching The Moral Leader
In The Moral Leader course at Harvard Business School, students exchange their business management case studies to discuss some of the great protagonists in literature. Sandra Sucher discusses how we all can find our own definition of moral leadership. Closed for comment; 0 Comments.
- 18 Nov 2002
- Research & Ideas
Where Morals and Profits Meet: The Corporate Value Shift
Although recent headlines focus on business boondoggles, HBS professor Lynn S. Paine's research shows a rising standard of corporate performance that includes moral and financial dimensions. In an interview, she details this trend and her new book, Value Shift. Closed for comment; 0 Comments.
- 22 Apr 2002
- Research & Ideas
Does Spirituality Drive Success?
Is there a place for spirituality in the workplace? Executives from Silicon Valley to Boston tell how they twine their business leadership with religious and personal values. Closed for comment; 0 Comments.
- 12 Nov 2001
- Research & Ideas
Can Religion and Business Learn From Each Other?
Do religion and business have anything to say to each other? HBS senior research fellow Laura Nash believes they do. Closed for comment; 0 Comments.
Mindful Leadership: When East Meets West
Harvard Business School professor William George is fusing Western understanding about leadership with Eastern wisdom about the mind to develop leaders who are self-aware and self-compassionate. An interview about his recent Mindful Leadership conference taught with a Buddhist meditation master. Key concepts include: People who are mindful—fully present and aware—can become more effective leaders. Leaders with low emotional intelligence often lack self-awareness and self-compassion, which can lead to a lack of self-regulation. Authenticity is developed by becoming more self-aware and having compassion for oneself. Group support provides nonjudgmental feedback in order to recognize blind spots, accept shortcomings, and gain confidence. Closed for comment; 0 Comments.