Index

42nd Street Development Corporation, 124

A

Academic-Industry Research Network, 158

accountability, 8, 10, 16, 42, 44, 112, 137

employee demands for, 90-93

Admati, Anat, 41-42

agency and agency theory, 26, 156, 162, 171

airline industry, 2, 4, 54. See also Boeing; Southwest Airlines

Alaskan Arctic, drilling in, 74

Amazon, 36, 80, 94-95

American Fuel and Petrochemical Manufacturers, 75

Annan, Kofi, 140

Apple, 111, 165-66

“Are Our Management Theories Outdated?” (Petriglieri), 91-92

Aspen Institute, 5-6, 21, 80, 153

Aspen Undergraduate Network, 170

Business and Society Program, 36

Business Leaders Dialogues, 34, 117, 138

Economic Opportunities Program, 91

Finance Faculty Dialogue, 19-20, 40

First Movers Fellowship, 25, 29-30, 99, 142, 146

Ideas Worth Teaching awards, 41, 43, 108, 179

Rodel Fellowship, 58

“The 21st Century Corporation” seminar, 50-51

asset management, 25-35

discounted cash flow (DCF) model, 16, 26-27

long-term views, 28, 31, 38

old vs. new rules, 16, 17

“woke,” 29-30

Astor, Brooke, 125

authenticity, 36-37, 65-66

B

B2B corporations, 80, 81, 112, 142

The Baby Killer (War on Want), 71-72

Baldwin, Tammy, 32, 159

bankruptcies, 23, 32, 33, 109, 118, 124, 150

Bastian, Ed, 89, 118

The Battle to Do Good (Langert), 136

beliefs, 7-8, 61-62, 83, 129, 146, 151, 176

Ben and Jerry’s, 162

Benioff, Marc, 66, 89, 118, 149-50

Benton, William, 127, 129

Benton & Bowles, 127

Bergh, Chip, 98, 99

Berry, Thomas, 1, 13, 42

Better Cotton Initiative (BCI), 140-41

Beyond Grey Pinstripes ranking system, 178

Bezos, Jeff, 94

Biederman, Dan, 125

biodiversity, 79, 85, 175

Birchard, Bill, 116

BlackRock, xi, 27, 30-31, 49-50, 112-14

Blair, Margaret, 103-4

Blood, David, 20, 21

Bloomberg, 28, 64, 162

Blount, Sally, 170, 172

board members, 8, 51-52, 60-62

“activist” investors, 32

complicity in pay for performance, 159

employees as, 95-96

fiduciary duty to health of enterprise, 156-57

Germany, 96

Boeing, 2, 4, 54-56, 64, 97

Bogle, John, 113

Bower, Joe, 59-60, 165, 171-72

Bowman, John, 96

boycotts, 72-74, 77, 135

“break-even” goals, 29

Brenner, Karen, 45

Brookings Institution, 53, 103-4

Bross, Dan, 87-88

Bryant, William Cullen, 124

Bryant Park (New York City), 123-26, 142, 146

Bryant Park Corporation, 125-26

Budinger, Bill, 57-58

Budinger, Don, 57-58

Buffett, Warren, 25, 113

Built to Last (Collins), 50

Burke, Jim, 106-7

business. See Rule #2 (business purpose)

Business and Society Program (Aspen Institute), 5-6, 19-20, 25, 29-30, 34, 36, 40, 41, 43, 99, 108, 117, 138, 142, 146, 170, 179

business capacity, 12, 38 business decisions

future-oriented, 8-9, 14, 171, 177-79

social and environmental impacts of, 16, 20

business design, 65

business ecosystem, 6, 18

business failure, xi, 2, 6, 64

Business for Social Responsibility, 179

business history, 110-11

Business Improvement District (Bryant Park, New York), 126

business model, 10, 12, 17, 22, 65, 79, 90, 95, 115

Fink’s letter and, 112-13

unlocking real value, 151-53

Valeant, 48-49

Wausau Paper, 32-33

Business Roundtable (BRT), 63

climate change statement, 143-44

renunciation of shareholder value principle, 11, 59-67, 145, 148-49

business schools, 5-6, 11, 41, 169-80

analytical frameworks, 21-22

finance academy, 13, 19-22, 39-43

new conversation required, 179-80

shareholder-centric norms, 170-71

virtual “networked learning,” 172

winds of change in, 171-73

business-society networks, 140

business system, 7, 65, 85

C

Cannon, Jim, 123, 134-37, 142, 146

capitalism, 11, 41-43, 61, 91-92, 118

Capitalisms Compared (Bowman), 96

capital markets, 6, 9, 11, 17, 32-34, 41, 57

Casper mattress company, 49

change agents, 10-12, 16-17, 68, 78-79, 178

employees as, 93-95

internal, 84, 99, 146

child labor, 77

Chipotle, 81-82

Christensen, Clay, 92-93

circular economy, 21

civil society organizations, 38, 138-39, 142

Clay, Jason, 10, 79, 134, 146

climate change, 2-3, 17, 143-46, 149, 154

activism, 78

Amazon and, 94-95

coal-fired power plants and, 24

Shell and, 75

social distancing and, 145. See also environmental issues

Climate Innovation Fund (Microsoft), 30

Climate Pledge, 94

coal-fired power plants, 22, 24

Coca Cola, 10

co-creation. See Rule #6 (co-creation)

codes of conduct, 72-74

codetermination, 96

collective action, 3, 84

Collins, Jim, 50

Committee for Economic Development (CED), 127-28, 140

commodity producers, 76, 79

competition, 17, 120, 156

in ESG investing, 28

precompetitive level, 78-79

race-to-the-bottom, 14, 34

Conway, Maureen, 91

Cook, Tim, 165-66

corporate design, 107

corporate laws, 8, 52, 60-61

corporate social responsibility (CSR), 52-6, 57, 65, 87, 138

corporations

accountability of, 8

as amoral, 7

business as different from, 46

changing roles of, 33-34

“hollow,” 112

as legal constructs, 46

productive capacity undermined, 159

purpose of, 4, 16, 43, 44, 45-68, 112-14. See also Rule #3 (corporate responsibility)

Corporations and Society Initiative (Stanford University Graduate School of Business), 41

cotton production, 140-41

Council of Institutional Investors, 149

Counterpoint Global fund, 25, 26

COVID-19 (coronavirus) pandemic, 2, 11, 35-36, 90-91, 93, 99, 109, 118, 143, 144-45, 162, 164

culture, 17, 102, 114-19

Cummins Engine, 60

CVS, 10, 150

D

Davis, Jerry, 108, 109, 172

Day, Dorothy, 145

De Beers, 39

degrowth movement, 175

Delaware law, 8, 52

Delta, 89, 118

profit-sharing plan, 150

Deming, W. Edwards, 129-30

De Pree, D. J., 115-16

De Pree, Max, 116

Dimon, Jamie, 63, 149

discounted cash flow (DCF) model, 16, 26-27

disruptive innovation, 92

The Divine Right of Capital (Kelly), 61-62, 103, 104-5

Dorff, Michael, 161

Dow Chemical, 30

Drucker, Peter, 162

East End Avenue Corporation, 62

Eastman Kodak, 127

economy

GDP growth, 175-76

global, x, xi, 3, 13, 16,17, 35, 50, 172

real, 109-12

Edelman, 38

Ek, Daniel, 108

elephant and rider example, 150-51

Ellen MacArthur Foundation, 21

emotional intelligence, 39, 112, 142

employee profit-sharing, 33, 67, 115, 150

employees, 10, 86

accountability, demands for, 90-93

board seats, 95-96

COVID-19 and, 36, 92-93

engagement scores, 159

humanity of, 91

job creation and tax cuts, 158-59

job creation and worker investment, 67

protest of working conditions, 36

provocative questions asked by, 95-97

speaking out, 89-90, 149

employment, post-World War II, 127-28

“The End of Globalization” class, 172

Energy Future Holdings (formerly TXU), 23

Engineers’ Creed, 55

Enron, 4-5, 6, 8, 64, 105

Environmental Defense Fund, 24

environmental issues, 1, 4

activists, 23, 24, 175

asset management investment in, 25-26

biodiversity, 79

carbon capture, 118-19

carbon dioxide emissions, 2, 30, 75, 83, 95, 98, 119

deforestation, 83. See also climate change

equality, as value, 118

equal opportunity statutes, 88

Equilar, 157

equity-based pay, 13, 148, 156-57

equity markets, 110

“The Error at the Heart of Corporate Leadership” (Paine and Bower), 59-60, 165, 171-72

ESG (environment, social, and governance) investing, 28, 30, 33

Espersen (Danish company), 133-37, 142

ethical dilemmas, 41, 47

Eureka Innovation Lab (Levi Strauss), 29-30

European economies, 96 executives/CEOs

business leadership and, 154-55

cost of and, 158-61

design of pay, 13, 35, 156-58

desirable qualities in, 36-37

equity-based pay, 13, 148, 156-57

facts and, 149-51

five questions for rethinking pay for performance, 164

incentives and rewards for, 13, 147-67

influencing mindsets of, 151-54

job description, 67

long-term restricted share proposal, 162-63

mindset of, x, xii, 4, 7-8, 13, 148

modern principles of sensible and effective pay, 164-67

pay for performance, 9, 156-59

pay package disclosure, 155

United States as outlier, 156

unleashing creativity in the design of pay, 161-63

expectations market, 34-35

externalities, 20, 30

extraction model, 1, 32-33, 81-82

Facebook, 52, 54, 80, 97 facts, 149-51

Federal Aviation Administration (FAA), 54

“felt fairness,” 162

fiduciary duty, 9, 60-61, 116-17, 156-57

Revlon rule, 52

finance

academy, 13, 19-22, 39-43

interdisciplinary courses, 41

TXU and future of, 24

wake-up call in, 22-24

financial capital. See Rule #5 (financial capital)

financial crisis of 2008, 19-20, 110, 155

junk bonds, 22-23

mortgage market, 4, 42

Fink, Larry, xi, 27, 49-50, 112-14, 119

first movers, 80, 142

First Mover Fellowship, 25, 29-30, 99, 142, 146

fishing industry (Barents Sea), 123, 131-37, 142

Fixing the Game (Martin), 34, 104, 107

Focusing Capital on the Long Term, 61

Folsom, Marion B., 127

forcing functions, 16-17

Ford, Henry, 5

Ford Foundation, ix-x, 5, 9, 50

Frazier, Ken, 89

Friedman, Milton, xi, 40

future, orientation toward, 8, 11-13, 20

asset management and, 25-27

change agents, 78-79

cod fishing industry, 133-34

incentives to unlock real value, 147-67

Native American principles, 21

value and, 8, 16, 18, 34

Future-Fit, 29

G

Garten, Jeffrey, 176

General Dynamics, 51-52

General Motors, 56, 110

Generation Investment Management, 20, 21

Gentile, Mary, 178

Germany, 96

Giridharadas, Anand, 153-54

GLEAM (Gay and Lesbian Employees at Microsoft), 88

global economy, x, xi, 3, 13-14, 16, 17, 35, 50, 172

Global Network for Advanced Management (GNAM), 172-73

Global Sustainability Forum, 2019, Yunnan, China, 28-29

Goldman Sachs, 4, 22

González, Emma, 78

Google, 10

#GoogleWalkout, 93-94, 95

Gorsky, Alex, 63, 149

governance, 28, 52, 57-58, 125

economy and, 127

employee roles in, 95-96

ESG (environment, social, and governance) investing, 28, 33

government, public trust in, 38-39

Great Depression, 105, 109, 124

Greenpeace, 73, 74, 76, 132-33, 135

Gregorio, Arlen, 71

Gross, Pat, 64

Gulowsen, Truls, 135

H

Haas, Bob, 5

Haas School of Business (University of California, Berkeley), 172-73

Harvard Business Review, 57

“Are Our Management Theories Outdated?,” 91-92

“The Error at the Heart of Corporate Leadership,” 59-60, 165, 171-72

“The Virtue Matrix,” 80

Harvard Business School, 11-12, 40-43, 170-71, 178

hate groups, 89

Heath, Chip, 103, 150-51

Heath, Dan, 103, 150-51

Heiskell, Andrew, 125

Henderson, Rebecca, 42-43

Herman Miller, 115-17

HIV-AIDS epidemic, 80-81

Hoffman, Andy, 172

Hoffman, Paul G., 127

Hoplamazian, Mark, 89

Hostess, 33

hostile takeovers, 32-33, 51-52, 65, 82, 114, 117

housing market, 19, 42

How Will You Measure Your Life? (Christensen), 92-93

human condition, 95, 116

human rights, 3, 77, 84, 154

Hurricane Katrina, 152-53

I

Ideas Worth Teaching awards, 41, 43, 108, 179

immigration

Muslim ban, 88-89

Uber and, 74-75

impact investing, 5

Inclusive Capitalism Coalition, 110

index funds, 113, 114

Indispensable and Other Myths (Dorff), 161

individual savers and investors, 31, 113

Indonesia, 83

industrialization, 96, 144

inequality, 11, 109, 129, 154-55, 160

infant formula marketing issue, 71-73

initial public offering (IPO), 104, 107-8

innovation, 58, 92, 99-100

The Innovator’s Dilemma (Christensen), 92

inputs and outputs, 51

Institutional Shareholder Services (ISS), 157, 162-63

intangible forms of value. See Rule #1 (intangible values)

Intel, 162

International Council on Mining and Metals (ICMM), 139

Internet, 73

Internet of Things, 17

intrapreneurs, 99

intrinsic motivation, 80

Iroquois Confederacy, 21

J

Jacobs, Don, 7

Japan, 129-31

Jim Yong Kim, 47

Johnson, Robert Wood, 105-6

Johnson & Johnson, 63, 149

Credo, 105-7, 115

joint-stock companies, 110

JPMorgan Chase, 4, 63, 149

JUST Capital, 158

K

Kahane, Adam, 9

Kaizen (Japanese way), 130

Kalanick, Travis, 75

Kamei, Thomas, 25-27

Kay, John, 110-12

Kearns, David, 5

Kelleher, Herb, 62, 66, 115, 120

Kellogg School of Management, 7

Kelly, Marjorie, 61-62, 103, 104-6

Kennedy, John F., 53

Knight, Phil, 73, 76, 78, 154, 173-75

Kobori, Michael, 142

Kohlberg Kravis Roberts & Co. (KKR), 22, 33

Korologos, Ann McLaughlin, 88

Kramer, Mark, 40-41

L

Langert, Bob, 136-37, 142

Langstaff, David, 49-51, 53, 56, 58, 62

Lay, Ken, 6

Lazonick, William, 158-59

leadership, 5, 8, 11-12, 20

business purpose and, 42-43 47

for co-creation, 142-43, 145. See also executives/CEOs

Leadership Is an Art (De Pree), 116

Lehman Brothers, 19

leveraged buyouts, 22-24

Levine, Matt, 28

Levi Strauss, 29-30, 39, 74, 98, 99

Lewis, Sinclair, 147

LGBT employees, 88, 89

Liang, James Robert, 2

license to operate, xi, xii, 8, 40, 45-46, 55, 66, 149, 166, 180

co-creation among competitors, 139-42

complexity of, 81

employees and, 95

sense of, 49

life insurance policies (viatical benefits), 80-81

LinkedIn, 66 Lipton, Marty, 8

liquidity, 104

Lloyds Bank, 162-63

lobbyists, 67

local networks, 140

Lonely Whale, 25-26

long-only funds, 25

long-term focus, 9, 25-26, 28, 57, 61, 96

capital allocation, 113-14

low-wage industries, 152-53, 158

Lucent Technologies, 60

Lyons, Richard, 172-73

M

macroeconomic trends, 34

management, human view of, 91-92

management theory, 158

marginalized voices, 131

market activity, types of, 34-35

market-based coalitions, 138-39

market civitas, 37-39

market manipulation, 158

“Market World,” 154

Marshall Plan, 128

Martin, Roger, 34, 80, 104, 107

Mason, Mark, 142

material risk, 24, 26-27

Mazzucato, Mariana, 19, 31-32

MBA, 6, 170, 177-78

McDonald, Duff, 170

McDonald’s, 133-36, 142

McGaw, Nancy, 99, 178

McKinley, William, 37

McKnett, Chris, 30

McLaughlin, Kathleen, 153

McMillon, Doug, 37, 153

McNabb, Bill, 114

Meadows, Donella, 147

Mectizan (ivermectin), 37, 46-48, 80

Merchants of Virtue (Birchard), 116

Merck, 37, 46-48, 49, 62, 80

#MeToo, 93-95

Microsoft, 30, 87-88, 118-20

Miller, Arjay, 42

Miller, Herman, 115

Millstein, Ira, 8, 59-60

mindsets, 26, 29, 121

of executives, x, xii, 4, 7-8, 13, 148

influencing, 151-54

of MBA graduates, 173-74

shareholder as only concern, 3-4, 8, 59

systems thinking and, 147

“Money Stuff” Bloomberg column, 28

Moody-Stuart, Mark, 138-40, 142

Morgan Stanley Investment Management, 25-26

Murray, Alan, 176

N

Nadella, Satya, 66, 118, 120

The Naked Corporation (Tapscott), 76

National Employment Law Project, 158

national interests, 126-27

National Society of Professional Engineers, 55

Native Americans, 21

Natural Resources Defense Council, 24

Nature Conservancy, 30

Nestlé, 71-73

Net Impact, 178

Neumann, Adam, 49, 120

New Economy companies, 118

New Yorker cartoon, 56, 59

New York University, 45

Nielsen, Klaus, 133-34, 135, 142

Nike, 73-74, 76, 173, 174

Nohria, Nitin, ix, 11

non-governmental organizations (NGOs), 16, 78

Nooyi, Indra, 66, 82, 121

Novo Nordisk, 57, 58

O

old boys’ network, 128

Old Story vs. New Story, 1, 13, 42

Onassis, Jackie, 124

original systems condition, 105

ownership, 57, 58, 105

Ownership and Control (Blair), 103-4

Oxfam, 76

P

Padró, Miguel, 109

Paine, Lynn Sharp, 8, 59-60, 165, 171-72

palm oil, 83

paper industry, 32-33

Papert, Fred, 124

Parkland, Florida, shootings, 78

Parks Council (New York City), 125

Patrick, Deval, 33

pay

board members’ complicity in pay for performance, 159

design of, 13, 35, 156-58

pay for performance, 9, 156-59. See also executives/CEOs

Peltz, Nelson, 82

Pence, Mike, 89

People, Planet, Profits report (Shell), 138-39

people-centered strategy, 51

PepsiCo, 7, 10, 39, 82, 121

Petriglieri, Gianpiero, 87, 91-92

pharmaceutical companies, 37, 46-49

philanthropy, 82

Plastics Industry Association, 10, 26

plastic straws, 25-26

politicians, 58

Polman, Paul, 62, 65-66

Porter, Michael, 40-41

portfolios, 27-28

Preisser, Claire, 178

private equity, 22, 24, 31

private sector, 5, 9, 68, 127, 129

private self-interest, 137, 139

productive activity, 31-32, 48

Program-Related Investments (Ford Foundation), 5

ProPublica, 119-20

protected classes, 88

protopia, 29

prototypes, 29

proxy advisory firms, 157, 162-63

Prudential Insurance Company, 80-81

public benefit, 38, 40, 125-26, 130-31, 146

public capital markets, 6-7, 104-8

publicly traded firms, xi, 8, 10, 12, 35, 49, 51-52, 57-62, 99, 104, 108, 112, 116

public opinion, 37-38, 73-74, 95-96, 137, 144

Q

quarterly earnings forecasts, 63

R

race-to-the-bottom competition, 14, 34

racial inequality, 11, 109

radical transparency, 76

Rainforest Action Network, 24

raising the bar, x, 17, 29-30, 63, 73, 78, 80-81, 135, 140

real economy, 40-41, 109-12

real market, 34-35

real value, 12, 16-17, 18, 68

contributors to, 23

creators of, 16-17, 34, 67

incentives to unlock, 147-67

measures of, 8, 22. See also specific rules

regeneration, 11, 29, 30

Reimagining Capitalism in a World on Fire (Henderson), 42-43

Remick, Tierney, 36

“Repeat After Me: The Markets Are Not the Economy” (Phillips), 109

“resource curse,” 139

responsibility, corporate, 16,17, 70, 71-85, 119-21. See also Rule #3 (corporate responsibility)

Responsible Leadership (Moody-Stuart), 138

Responsible Research for Business and Management, 172

return on investment (ROI), 3, 31, 81

Revlon rule, 52

Reward Work Act, 158

risk, 16

analysis of, 21

discounted cash flow (DCF) model, 16, 26-27

material, 24, 26-27

rethinking, 19-43

systems change and, 79

river blindness (onchocerciasis), 37, 46-48, 80

Rodel, Inc., 57-58

Rodel Fellowship, 58

Rohde, Gilbert, 116

Romney, Mitt, 33

Roosegaarde, Daan, 28-29

Roosevelt, Theodore, 37, 96

Roosevelt Institute, 158

Ross School of Business (University of Michigan), 108, 172

Royal Caribbean cruise line, 1, 4

Rubin, Andy, 93

Rule #1 (intangible values), 7-8, 16, 18, 19-43, 149

challenge for finance scholars, 39-43

change in the C-suite, 35-37

finance, wake-up call in, 22-24

market civitas, 37-38

old rule vs. new rule, 18

signs of change in asset management, 25-35

Rule #2 (business purpose), 4, 8-9, 16, 42-68, 45-68, 175

back to basics, 57-59

Boeing, purpose of, 54-56

business, distrust of, 63-64

creating real value, 64-68

employees and, 91-92

follow-through, 57

old rule vs. new rule, 44

purpose revealed, 49-54, 55-57

Rule #3 (corporate responsibility), 10, 16, 71-85

change agents, role in, 78-79

codes of conduct, 72-73

leadership and, 85

microscope, companies under, 81-84

Nestlé boycott, 71-73

old rule vs. new rule, 70

radical transparency, 76

story of change, 80-81

Rule #4 (employee voice), 10, 17, 87-100

accountability, demands for, 90-93

innovation and quest for talent, 99-100

#MeToo moment, 93-95

old rule vs. new rule, 86

provocative questioning by, 95-97

restoring trust in business, 97-98

Rule #5 (financial capital), 11, 17, 103-21

capital markets and corporate purpose, 112-14

corporate responsibility and, 119-21

culture, defining, 114-19

old rule vs. new rule, 102

public capital markets, purpose of, 107-8

Rule #6 (co-creation), 12, 17, 118, 123-46, 166

among competitors when license to operate at risk, 139-42

Bryant Park example, 123-26, 142, 146

climate change, 143-46

co-creation among competitors, 139-42

employment, post-World War II, 127-28, 140

getting the right people in the room, 129-31

leadership for co-creation, 142-43, 145

market-based coalitions and civil society organizations, 138-39

old rule vs. new rule, 122

power of small group, 128-29

trust building, cod industry example, 131-37

rule of law, 50, 85, 139

rules

decision rules, 21-23, 39-40, 68, 91, 172

of engagement, 11, 16, 28, 77, 84, 91

new, x-xii, 3, 6-14, 16-17, 18, 33, 68, 79, 84, 91, 148-49, 180

new, as already written, 3, 6, 9-10, 14

new, undermining, 13 old, 1-4, 16-17, 18, 44, 70, 86, 102, 122. (See also specific rules)

old rules vs. new rules, 16-17, 18 of

value creation, 4-7. See also specific rules

Russell 1000, 158

S

Saïd Business School (University of Oxford), 174

Salesforce, 66, 89, 118, 149

Say on Pay votes, 155

Scandinavia, employees on boards, 96

Scardino, Marjorie, 45

scenario planning, 9

Schacht, Henry, 5, 60

Schulten, Ashley, 30-31

Schultz, Howard, 26

Scott, Lee, 151-53

Seattle, Washington, 118

secondary markets, 34

semiconductor manufacturing, 58

September 11, 2001 attacks, 6

Serafeim, George, 40-41

Seventh Generation, 21

sexual harassment, 93-95

share buybacks, xi, 12, 16, 67, 104, 145, 154-55, 157 cost of, 158-61

tax cuts, 2018, 12, 158-59, 165-66

shareholders, 8, 16, 100

Business Roundtable rejects model of, 59

Delaware law and, 8

design of executive pay and, 13, 35, 156-58

fiduciary duty to, 116-17

old rule vs. new rule, 102

primacy, end of, 59-65, 148-49

primacy of as organizing principle, 3-4, 8-9, 16, 59

stakeholders and, 60, 63-65

stock certificate ownership only, 112

voting rights, 111-12

shareholder value maximization, 2, 6, 8, 16, 48

mindset of MBA graduates, 173-74

not required by US law, 60-61

short-termism, 56-58

The Shareholder Value Myth (Stout), 60-61, 103, 112

shareholder value theory, 158, 165, 171-72

Shell (Royal Dutch Shell), 9, 10, 73-76, 119, 120, 138, 140, 142

short-term thinking, 2, 56-58, 161-62

Sights, Bart, 29-30

six rules. See Rule #1 (intangible values); Rule #2 (business purpose); Rule #3 (corporate responsibility); Rule #4 (employee voice); Rule #5 (financial capital); Rule #6 (co-creation)

Six Sigma/Lean Manufacturing, 55, 130

slavery, 132

Smith, Adam, 21, 32

Smith, Lorraine, 21

Snapchat, 111-12

social distancing, 144-45

social media and networks, 10-12, 73-74, 85, 98

hashtag movements, 10, 16, 75, 93-95

social problems, 10-12, 17, 78, 140

soft power, 38

Sørensen, Lars, 57

Southwest Airlines, 62, 115, 118

S&P 500, xi, 28, 113

space program, 33, 50, 53

Spotify, 107-8, 111, 112

“square deal,” 37

stakeholders, 32, 50, 63-65, 90, 108, 136-37, 148, 154, 156, 171-72

meaning of, 64-65

Stanford University Graduate School of Business, 41-42, 173-74

Starbucks, 25-26, 39

Star Furniture Company, 115

Stewart, James, 170

stock market

after-market, 107 direct listing, 107-8

highly concentrated holdings, 109

performance in vs. health of real economy, 109-12

prices, 34, 107

undervalued, 25

stock pickers, “guiding,” 65

Stout, Lynn, 8, 60-61, 103, 112

Strine, Leo, 8

structural inequalities, 11, 129

Studebaker Corporation, 127

Stumpf, John, 52

supply chains, 2, 10, 17

systems change and, 79

sustainability, 28-29, 116

Sustainability Accounting Standards Board (SASB), 27

Sustainable Fisheries Partnership, 134

Sustainable Living Plan (Unilever), 65

Swan, Robert, 162

Switch (Heath and Heath), 103, 150-51

system, definition, 147

systems change, 3, 9, 25, 79

systems design, 13, 147-48

systems thinking, 21, 147-67

T

“Takeover Bids in the Target’s Boardroom” (Lipton), 33

talent, 17, 18, 58, 99-100, 102

Tapscott, Don, 76

TASC, 53

Tata, Ratan, 5

tax avoidance, 67, 120, 155

tax cuts, 2018, 12, 158-59, 165-66

Tell Shell report, 138-39

Texas Pacific Group, 22, 31

Texas Power & Light (TXU), 22-24, 31

textile industry, 29-30

theory

ideology vs., 60

practice vs., 21-22

shareholder value theory, 158, 165, 171-72

Thinking in Systems (Meadows), 147

third-party actors, 39

Thunberg, Greta, 78, 175

Ticoll, David, 76

Total Quality Management (TQM), 55, 130

traceability of products, 141

trade associations, 38, 143-44

transfer pricing, 120

Treasury Department, 40

Trump, Donald, 74-75, 88, 158

trust, 17, 38-39, 97-98

building, cod industry example, 131-37

Trust Barometer, 38

Tsui, Anne, 172

“Twenty First Century Leadership” (Scott), 152-53

Tylenol cyanide crisis, 106-7

U

Uber, 74-75, 79-80

UMass Lowell, 158

Unilever, 62, 65, 114, 140

unions, 89-90, 91, 159

United Kingdom, 110

United Nations, 88, 138, 175, 179

Climate Change Summit, 175

Global Compact, 88, 140

Principles for Responsible Management Education (PRME), 179

United States, 37, 58, 60-62

founders, 129

immigration, 74-75, 88-89

outcome of shareholder focus on, 159-60

Super Tuesday 2016, 175

universal investors, 113

University of California, Berkeley, 172-73

University of Michigan, 108, 172

University of Notre Dame, 172

University of Oxford, 174

V

Vagelos, Roy, 37, 46-48, 51, 58, 62, 64

Valeant, 48-49

valuation, 22-23

value

abstractions, 20

employees and, 98

future, 8, 16, 18, 34

hard assets, 16,17, 39, 102, 111

intangible forms of, 8, 16, 18, 19-43

real, 7-8

“releasing,” 32. See also

real value; Rule #1 (intangible values)

value creation, 4-7, 21, 52, 102

business purpose and, 64-68

long-term focus, 26-28, 31-33, 37, 39, 43

The Value of Everything (Mazucato), 19, 31-32

van Beurden, Ben, 75, 120

Vanguard, 113-14

The Vanishing Corporation (Davis), 108

Veridian, 49, 51-52, 53, 56

“The Virtue Matrix” (Martin), 80

Volkswagen (VW), 2, 4

W

Wachtell, Lipton, Rosen & Katz, 33

Walker, Brian, 116-17

Walmart, 37, 151-53

War on Want, 71-72

Wartzman, Rick, 159

Waste Management, 39

Wausau Paper (Wisconsin), 32-33

Weil, Gotshal & Manges, 59-60

Weiner, Jeff, 66

Wells Fargo, 4, 30, 52

WeWork, 49, 120

whistleblowers, 97

white supremacists, 89

Wilson, Charles, 56

Wilson, Tom, 66

Winners Take All (Giridharadas), 153-54

working conditions, 3, 90, 93-94

World Bank Group, 47

World Economic Forum 2020 (Davos), 11

World Health Organization, 72

World Resources Institute (WRI), 178

World War II, 126-27, 140

World Wildlife Fund (WWF), 10, 79, 132

Y

Yale School of Management, 22, 172

Z

Zuckerberg, Mark, 97

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