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- HBS Book
Complicit: How We Enable the Unethical and How to Stop
By: Max H. BazermanIt is easy to condemn obvious wrongdoers such as Elizabeth Holmes, Adam Neumann, Harvey Weinstein, and the Sackler family. But we rarely think about the many people who supported their unethical or criminal behavior. In each case there was a supporting cast of complicitors: business partners, employees, investors, news organizations, and others. And, whether we’re aware of it or not, almost all of us have been complicit in the unethical behavior of others. In Complicit, HBS professor Max Bazerman confronts our complicity head-on and offers strategies for recognizing and avoiding the psychological and other traps that lead us to ignore, condone, or actively support wrongdoing in our businesses, organizations, communities, politics, and more.
- HBS Book
Complicit: How We Enable the Unethical and How to Stop
By: Max H. BazermanIt is easy to condemn obvious wrongdoers such as Elizabeth Holmes, Adam Neumann, Harvey Weinstein, and the Sackler family. But we rarely think about the many people who supported their unethical or criminal behavior. In each case there was a supporting cast of complicitors: business partners, employees, investors, news organizations, and others....
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- Harvard Business Review 101, no. 1 (Jan-Feb 2023): 45-49.
Rethink Your Employee Value Proposition: Offer Your People More Than Just Flexibility
By: Mark Mortensen and Amy C. EdmondsonA lot of leaders believe that the formula for attracting and keeping talent is simple: Just ask people what they want and give it to them. The problem is, that approach tends to address only the material aspects of jobs that are top of employees’ minds at the moment, like pay or flexibility. And those offerings are easy for rivals to imitate and have the least enduring impact on retention. Companies instead should focus on what workers need to thrive over the long term, balancing material offerings with opportunities to grow, connection and community, and meaning and purpose.
- Harvard Business Review 101, no. 1 (Jan-Feb 2023): 45-49.
Rethink Your Employee Value Proposition: Offer Your People More Than Just Flexibility
By: Mark Mortensen and Amy C. EdmondsonA lot of leaders believe that the formula for attracting and keeping talent is simple: Just ask people what they want and give it to them. The problem is, that approach tends to address only the material aspects of jobs that are top of employees’ minds at the moment, like pay or flexibility. And those offerings are easy for rivals to imitate and...
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- Digital Initiative
Improving Human-Algorithm Collaboration: Causes and Mitigation of Over- and Under-Adherence
By: Maya Balakrishnan, Kris Ferreira and Jordan TongEven if algorithms make better predictions than humans on average, humans may sometimes have “private” information which an algorithm does not have access to that can improve performance. How can we help humans effectively use and adjust recommendations made by algorithms in such situations? When deciding whether and how to override an algorithm’s recommendations, we hypothesize that people are biased towards following a naïve advice weighting (NAW) heuristic: they take a weighted average between their own prediction and the algorithm’s, with a constant weight across prediction instances, regardless of whether they have valuable private information.
- Digital Initiative
Improving Human-Algorithm Collaboration: Causes and Mitigation of Over- and Under-Adherence
By: Maya Balakrishnan, Kris Ferreira and Jordan TongEven if algorithms make better predictions than humans on average, humans may sometimes have “private” information which an algorithm does not have access to that can improve performance. How can we help humans effectively use and adjust recommendations made by algorithms in such situations? When deciding whether and how to override an algorithm’s...
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- Featured Case
Hugging Face: Serving AI on a Platform
By: Shane Greenstein, Daniel Yue, Kerry Herman and Sarah GulickIt is fall 2022, and open-source AI model company Hugging Face is considering its three areas of priorities: platform development, supporting the open-source community, and pursuing cutting-edge scientific research. As it expands services for enterprise clients, which services should it prioritize? Will these projects be in line with Hugging Face’s volunteer community? Further, Hugging Face decided to remove a model uploaded by a contributor, due to the potential harm the leadership felt it could propagate. Was it the right decision?
- Featured Case
Hugging Face: Serving AI on a Platform
By: Shane Greenstein, Daniel Yue, Kerry Herman and Sarah GulickIt is fall 2022, and open-source AI model company Hugging Face is considering its three areas of priorities: platform development, supporting the open-source community, and pursuing cutting-edge scientific research. As it expands services for enterprise clients, which services should it prioritize? Will these projects be in line with Hugging...
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- Featured Case
Navya: Steering Toward a Driverless Future
By: Julian De Freitas, Elie Ofek, Shaun Ingledew and Tonia LabruyereIn 2022, Sophie Desormière arrived at French roboshuttle producer Navya, tasked with charting a new course in a challenging sector. The company, which had recently listed on the Paris Stock Exchange, was burning through cash reserves and needed to transform the promise of its technology into a credible business with a solid revenue stream. In the short term, Desormière had to decide whether, and if so under what pricing terms, to accept an opportunity that recently emerged in the U.S. However, the opportunity involved renting, rather than selling, and also required Navya to operate the service.
- Featured Case
Navya: Steering Toward a Driverless Future
By: Julian De Freitas, Elie Ofek, Shaun Ingledew and Tonia LabruyereIn 2022, Sophie Desormière arrived at French roboshuttle producer Navya, tasked with charting a new course in a challenging sector. The company, which had recently listed on the Paris Stock Exchange, was burning through cash reserves and needed to transform the promise of its technology into a credible business with a solid revenue stream. In the...
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- HBS Working Paper
How Do Investors Value ESG?
By: Malcolm Baker, Mark Egan and Suproteem K. SarkarEnvironmental, social, and governance (ESG) objectives have risen to near the top of the agenda for corporate executives and boards, driven in large part by their perceptions of shareholder interest. We quantify the value that shareholders place on ESG using a revealed preference approach, where shareholders pay higher fees for ESG-oriented index funds in exchange for their financial and non-financial benefits. We find that investors are willing, on average, to pay 20 basis points more per annum for an investment in a fund with an ESG mandate as compared to an otherwise identical mutual fund without an ESG mandate, suggesting that investors as a group expect commensurately higher pre-fee, gross returns, either financial or non-financial, from an ESG mandate.
- HBS Working Paper
How Do Investors Value ESG?
By: Malcolm Baker, Mark Egan and Suproteem K. SarkarEnvironmental, social, and governance (ESG) objectives have risen to near the top of the agenda for corporate executives and boards, driven in large part by their perceptions of shareholder interest. We quantify the value that shareholders place on ESG using a revealed preference approach, where shareholders pay higher fees for ESG-oriented index...
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- Working Paper
The Retail Habitat
By: Toomas Laarits and Marco SammonRetail investors trade hard-to-value stocks. Controlling for size, stocks with a high share of retail-initiated trades are composed of more intangible capital, have longer duration cash-flows and a higher likelihood of being mispriced. Consistent with retail-heavy stocks being harder to value, we document that such stocks are less sensitive to earnings news. As an additional consequence, the well-known earnings announcer risk premium is limited to low retail stocks only. Further, high-retail stocks are more sensitive to retail order flow and are especially expensive to trade around earnings announcements. Overall, the findings document a new dimension of investor heterogeneity and suggest the comparative advantage of retail in holding hard-to-value stocks.
- Working Paper
The Retail Habitat
By: Toomas Laarits and Marco SammonRetail investors trade hard-to-value stocks. Controlling for size, stocks with a high share of retail-initiated trades are composed of more intangible capital, have longer duration cash-flows and a higher likelihood of being mispriced. Consistent with retail-heavy stocks being harder to value, we document that such stocks are less sensitive to...
Initiatives & Projects
Creating Emerging Markets
Seminars & Conferences
- 30 Jan 2023
Martine Haas, Wharton
- 31 Jan 2023
Nitin Mehta, University of Toronto
Recent Publications
Giving-by-proxy Triggers Subsequent Charitable Behavior
- March 2023 |
- Article |
- Journal of Experimental Social Psychology
Association Between Regulatory Submission Characteristics and Recalls of Medical Devices Receiving 510(k) Clearance
- 2023 |
- Article |
- JAMA, the Journal of the American Medical Association
Disruption and Credit Markets
- February 2023 |
- Article |
- Journal of Finance
OTC Intermediaries
- February 2023 |
- Article |
- Review of Financial Studies
Mellody Hobson at Ariel Investments
- January 2023 |
- Supplement |
- Faculty Research
Progressive Decentralization: A High-level Framework
- January 12, 2023 |
- Article |
- a16zcrypto.com
Apple: Privacy vs. Safety (B)
- January 2023 |
- Supplement |
- Faculty Research