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  • March 2015 (Revised February 2017)
  • Case
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Shanghai: GDP Apostasy

By: George Serafeim
  • Format:Print
  • | Language:English
  • | Pages:30
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Abstract

Balancing economic growth alongside environmental sustainability and social inclusion was becoming increasingly important in China. The case describes Shanghai's decision to abandon growth of Gross Domestic Product (GDP) as its primary metric of measuring success. Within this context, the case presents the historical roots of GDP measurement and how the measure is calculated. Moreover, the case discusses the prominence of GDP as a measure of economic success. After a discussion of China's and Shanghai's use of GDP growth targets, the case discusses Shanghai's past successes and failures. Specifically, the case describes the enormous economic growth that Shanghai has experienced alongside significant economic, social, and environmental failures such as the inefficient use of resources, pollution, and growing inequality. The case concludes with the decision to abandon GDP growth as a measure of success and opens questions about what this means for Shanghai and China. Moreover, the case raises the question of what alternative metrics, such as the Social Progress Index or the Better Life Index, measuring success might look like and how a manager could design a balanced scorecard and a strategy map to drive strategy execution.

Keywords

China; Gdp; Measurement; Measurement Problems; Accountability; Sustainability; Sustainable Development; Strategy Execution; Strategy; Balanced Scorecard; Strategy Map; Macroeconomics; Measurement and Metrics; Corporate Accountability; Accounting; Environmental Sustainability; Development Economics; Corporate Governance; Shanghai

Citation

Serafeim, George, Rebecca Henderson, and David Freiberg. "Shanghai: GDP Apostasy." Harvard Business School Case 115-042, March 2015. (Revised February 2017.)
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About The Author

George Serafeim

Accounting and Management
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Related Work

    • June 2015 (Revised February 2017)
    • Faculty Research

    Shanghai: GDP Apostasy

    By: George Serafeim, Rebecca Henderson and David Freiberg
Related Work
  • Shanghai: GDP Apostasy By: George Serafeim, Rebecca Henderson and David Freiberg
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