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Rooting Out Corruption in the Business World

Tue, 01 Sep 2009 00:00:00 GMT

When we talk about corruption, we tend to think about the public sector, forgetting that if the practice exists, it is because a second party, normally in the private realm, takes part in or consents to it. This paper reviews the concept of corruption from a business standpoint and proposes a road map for fighting it in the private sector.

Taking the Big Leap

Wed, 03 Jun 2009 00:00:00 GMT

Skydiving holds valuable lessons for business: meticulous training, courage, managing teams, selecting the best people and, above all, a sense of mission to take the big leap. These ideas serve as the inspiration for a new book, written in the form of a novel, in which a man learns to sort out the family-run holding that he manages by confronting another challenge: breaking the world record for free falling in formation.

La Fageda: Social Integration Through Manufacturing

Tue, 02 Jun 2009 00:00:00 GMT

At La Fageda, there are no disabled people, just people with different abilities who work on a shared project. By producing farm-fresh yogurt of the highest quality, this cooperative has become the third-ranked brand in the local market, while at the same time achieving its aim of fully integrating people with special needs.

Revitalizing the General Meeting

Wed, 22 Apr 2009 00:00:00 GMT

While many acknowledge the need for reform of general shareholders’ meetings, regulators also recognize that improving corporate governance practices requires the efforts of other social actors. This is where institutional investors come in. In their book chapter, Jose Luis Alvarez and Joan E. Ricart explore alternative ways to revitalize the general meeting as a governing body, in the context of reforms being proposed.

Can the Company Achieve the Common Good?

Mon, 20 Apr 2009 00:00:00 GMT

What exactly is the common good? Can it be achieved within the company? Moreover, is it beneficial for an organization to seek the common good? In this paper, Antonio Argandoña offers reflection on these questions along with a practical “dictionary” for making political and social philosophy compatible with the theory of the company when discussing the concept of “good.”

The Dark Side of Stakeholder Management

Thu, 26 Mar 2009 00:00:00 GMT

Bernie Madoff, Lee Kun Hee and, less recently, WorldCom, Parmalat and Enron. In the wake of all this white-collar crime, people are calling for corporate social action. A Stakeholder Management approach could be the answer. But when a CEO is juggling everyone from employees to charities, the water surrounding their actions and results becomes murky. In “Does Stakeholder Management Have a Dark Side,” Carmelo Cennamo, Pascual Berrone and Luis R. Gomez-Mejia take a look at how managers could use causal ambiguity for their own ends.

Successful Steps for CEO Succession

Wed, 04 Mar 2009 00:00:00 GMT

Imagine you’re on an airplane that’s about to crash: Who would you choose to run the company? This question was famously posed by former GE CEO Reg Jones during the round of interviews to find his successor. That’s certainly one way to kick start the selection process. In “La sucesión del CEO” (“CEO Succession”), Guido Stein and Álvaro San Martín explain the key ingredients to a well thought-out succession plan and how to put the process of finding a new top executive into practice.

Managing Stakeholders Well Pays Off - in the Long Run

Thu, 19 Feb 2009 00:00:00 GMT

In theory, stakeholder-friendly managers deliver better performance. In practice, managers appear to neglect stakeholders. Roberto Garcia-Castro and Miguel Ariño of IESE and Miguel Canela of Barcelona University suggest why: In the short term, stakeholder-friendly policies seem to affect performance negatively. Yet, as the authors argue, good stakeholder management, although challenging, ultimately boosts shareholder value in the long run.

Removing Pitfalls for the Family Business

Thu, 29 Jan 2009 00:00:00 GMT

Whether simple or sophisticated, the pitfalls of family business often arise when the family’s goals are confused with those of the business. If a company is going to last, it must define the common dangers in its path. But in order to properly diagnose them, it is essential to understand the peculiarities that make family businesses a breed apart.

Behind the Crisis: "The Days of Big Bonuses Are Over"

Wed, 12 Nov 2008 00:00:00 GMT

What is behind the current global financial crisis? IESE Prof. Pascual Berrone points the finger at bad corporate governance practices. Accepted incentive schemes for top managers - such as golden parachutes that effectively reward failure, and stock options that led to excessive risk-taking in subprime mortgage securities - may be the ultimate culprit of the crisis.