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Social Enterprise

Social Enterprise

    • April 2013
    • Article

    Who Is Governing Whom? Executives, Governance, and the Structure of Generosity in Large U.S. Firms

    By: Christopher Marquis and Matthew Lee

    We examine how organizational structure influences strategies over which corporate leaders have significant discretion. Corporate philanthropy is our setting to study how a differentiated structural element—the corporate foundation—constrains the influence of individual senior managers and directors on corporate strategy. Our analysis of Fortune 500 firms from 1996 to 2006 shows that leader characteristics at both the senior management and director levels affect corporate philanthropic contributions. We also find that organizational structure constrains the philanthropic influence of board members but not of senior managers, a result that is contrary to what existing theory would predict. We discuss how these findings advance understanding of how organizational structure and corporate leadership interact and of how organizations can more effectively realize the strategic value of corporate social responsibility activities.

    • April 2013
    • Article

    Who Is Governing Whom? Executives, Governance, and the Structure of Generosity in Large U.S. Firms

    By: Christopher Marquis and Matthew Lee

    We examine how organizational structure influences strategies over which corporate leaders have significant discretion. Corporate philanthropy is our setting to study how a differentiated structural element—the corporate foundation—constrains the influence of individual senior managers and directors on corporate strategy. Our analysis of Fortune...

    • Article

    Corporate Social Responsibility and Access to Finance

    By: Beiting Cheng, Ioannis Ioannou and George Serafeim

    In this paper, we investigate whether superior performance on corporate social responsibility (CSR) strategies leads to better access to finance. We hypothesize that better access to finance can be attributed to a) reduced agency costs due to enhanced stakeholder engagement and b) reduced informational asymmetry due to increased transparency. Using a large cross-section of firms, we find that firms with better CSR performance face significantly lower capital constraints. Moreover, we provide evidence that both of the hypothesized mechanisms, better stakeholder engagement and transparency around CSR performance, are important in reducing capital constraints. The results are further confirmed using an instrumental variables and a simultaneous equations approach. Finally, we show that the relation is driven by both the social and the environmental dimension of CSR.

    • Article

    Corporate Social Responsibility and Access to Finance

    By: Beiting Cheng, Ioannis Ioannou and George Serafeim

    In this paper, we investigate whether superior performance on corporate social responsibility (CSR) strategies leads to better access to finance. We hypothesize that better access to finance can be attributed to a) reduced agency costs due to enhanced stakeholder engagement and b) reduced informational asymmetry due to increased transparency....

    • Spring 2014
    • Article

    What Impact? A Framework for Measuring the Scale & Scope of Social Performance

    By: Alnoor Ebrahim and V. Kasturi Rangan

    Organizations with social missions, such as nonprofits and social enterprises, are under growing pressure to demonstrate their impacts on pressing societal problems such as global poverty. This article draws on several cases to build a performance assessment framework premised on an organization's operational mission, scale, and scope. Not all organizations should measure their long-term impact, defined as lasting changes in the lives of people and their societies. Rather, some organizations would be better off measuring shorter-term outputs or individual outcomes. Funders such as foundations and impact investors are better positioned to measure systemic impacts.

    • Spring 2014
    • Article

    What Impact? A Framework for Measuring the Scale & Scope of Social Performance

    By: Alnoor Ebrahim and V. Kasturi Rangan

    Organizations with social missions, such as nonprofits and social enterprises, are under growing pressure to demonstrate their impacts on pressing societal problems such as global poverty. This article draws on several cases to build a performance assessment framework premised on an organization's operational mission, scale, and scope. Not all...

    • July–August 2014
    • Article

    Sustainability in the Boardroom: Lessons from Nike's Playbook

    By: Lynn S. Paine

    One surprising role of Nike's corporate responsibility committee is to provide support for innovation. More and more companies recognize the importance of corporate responsibility to their long-term success—and yet the matter gets short shrift in most boardrooms, consistently ranking at the bottom of some two dozen possible priorities. Many years ago labor conditions in Asian contract factories prompted Nike board member Jill Ker Conway to lobby for a board-level corporate responsibility committee, which the company created in 2001. In the years since, the committee has steadily broadened its purview, now advising on a broad range of issues including innovation and acquisitions in addition to labor practices and resource sustainability. A close examination of Nike's experience has led the author to conclude that a dedicated board-level committee of this sort could be a valuable addition to many if not most companies in at least five ways: as a source of knowledge and expertise, as a sounding board and constructive critic, as a driver of accountability, as a stimulus for innovation, and as a resource for the full board. In an accompanying interview with Paine, Conway discusses the committee's creation and provides an insider's perspective on what has made it so effective.

    • July–August 2014
    • Article

    Sustainability in the Boardroom: Lessons from Nike's Playbook

    By: Lynn S. Paine

    One surprising role of Nike's corporate responsibility committee is to provide support for innovation. More and more companies recognize the importance of corporate responsibility to their long-term success—and yet the matter gets short shrift in most boardrooms, consistently ranking at the bottom of some two dozen possible priorities. Many years...

    • 2014
    • Article

    Corporate Social Responsibility Reporting in China: Symbol or Substance?

    By: Christopher Marquis and Cuili Qian

    This study focuses on how and why firms strategically respond to government signals regarding appropriate corporate activity. We integrate institutional theory and research on corporate political strategy to develop a political dependence model that explains (a) how different types of dependency on the government lead firms to issue corporate social responsibility (CSR) reports and (b) how the risk of governmental monitoring affects the extent to which CSR reports are symbolic or substantive. First, we examine how firm characteristics reflecting dependence on the government—including private versus state ownership, executives serving on political councils, political legacy, and financial resources—affect the likelihood of firms issuing CSR reports. Second, we focus on the symbolic nature of CSR reporting and how variance in the risk of government monitoring through channels such as bureaucratic embeddedness and local government institutional development influences the extent to which CSR communications are symbolically decoupled from substantive CSR activities. Our database includes all CSR reports issued by the approximately 1,600 publicly listed Chinese firms between 2006 and 2009. Our hypotheses are generally supported. The political perspective we develop contributes to organizational theory by showing (a) the importance of government signaling as a mechanism of political influence, (b) how different types of dependency on the government expose firms to different types of legitimacy pressures, and (c) that firms face a decoupling risk that leads them to be more likely to enact substantive actions in situations where they are likely to be monitored.

    • 2014
    • Article

    Corporate Social Responsibility Reporting in China: Symbol or Substance?

    By: Christopher Marquis and Cuili Qian

    This study focuses on how and why firms strategically respond to government signals regarding appropriate corporate activity. We integrate institutional theory and research on corporate political strategy to develop a political dependence model that explains (a) how different types of dependency on the government lead firms to issue corporate...

    • 2014
    • Working Paper

    The Role of the Corporation in Society: An Alternative View and Opportunities for Future Research

    By: George Serafeim

    A long-standing ideology in business education has been that a corporation is run for the sole interest of its shareholders. I present an alternative view where increasing concentration of economic activity and power in the world's largest corporations, the Global 1000, has opened the way for managers to consider the interests of a broader set of stakeholders rather than only shareholders. Having documented that this alternative view better fits actual corporate conduct, I discuss opportunities for future research. Specifically, I call for research on the materiality of environmental and social issues for the future financial performance of corporations, the design of incentive and control systems to guide strategy execution, corporate reporting, and the role of investors in this new paradigm.

    • 2014
    • Working Paper

    The Role of the Corporation in Society: An Alternative View and Opportunities for Future Research

    By: George Serafeim

    A long-standing ideology in business education has been that a corporation is run for the sole interest of its shareholders. I present an alternative view where increasing concentration of economic activity and power in the world's largest corporations, the Global 1000, has opened the way for managers to consider the interests of a broader set of...

Initiatives & Projects

The Social Enterprise Initiative, Business & Environment Initiative, and Health Care Initiative apply innovative business practices and managerial disciplines to drive sustained, high-impact social change.
Social Enterprise
Business & Environment
Health Care

HBS pioneered the concept of “social enterprise” with the founding of its Social Enterprise Initiative (SEI) in 1993. Under the early leadership of James Austin on the importance of collaborative relationships to the success of nonprofits and Allen Grossman and V. Kasturi “Kash” Rangan on new directions in nonprofit strategy, we adopted a problem-focused approach toward understanding the challenges associated with driving sustained, high-impact social change. Current research focuses on leadership of socially mission-driven organizations; the role of business leaders and corporate citizenship in driving social change; business models that address poverty; management of high-performing K-12 public school districts; and financing models for the non-profit sector.

Initiatives & Projects

The Social Enterprise Initiative, Business & Environment Initiative, and Health Care Initiative apply innovative business practices and managerial disciplines to drive sustained, high-impact social change.

Social Enterprise
Business & Environment
Health Care

Recent Publications

A Political Economy of Justice

By: Danielle Allen, Yochai Benkler, Leah Downey, Rebecca Henderson and Joshua Simons
  • 2022 |
  • Book |
  • Faculty Research
Defining a just economy in a tenuous social-political time.
If we can agree that our current social-political moment is tenuous and unsustainable—and indeed, that may be the only thing we can agree on right now—then how do markets, governments, and people interact in this next era of the world? A Political Economy of Justice considers the strained state of our political economy in terms of where it can go from here. The contributors to this timely and essential volume look squarely at how normative and positive questions about political economy interact with each other—and from that beginning, how to chart a way forward to a just economy. A Political Economy of Justice collects fourteen essays from prominent scholars across the social sciences, each writing in one of three lanes: the measures of a just political economy; the role of firms; and the roles of institutions and governments. The result is a wholly original and urgent new benchmark for the next stage of our democracy.
Keywords: Political Economy; Social Justice; Capitalism; Business And Society; Economy; Society; Fairness; Economic Systems; Corporate Social Responsibility and Impact; United States
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Allen, Danielle, Yochai Benkler, Leah Downey, Rebecca Henderson, and Joshua Simons, eds. A Political Economy of Justice. Chicago: University of Chicago Press, 2022.

The Goldman Sachs 10,000 Small Businesses Program: 2009-2021

By: Leonard A. Schlesinger and Julia Kelley
  • March 2022 |
  • Case |
  • Faculty Research
In December 2021, more than a decade after its founding, Goldman Sachs’s 10,000 Small Businesses program was still going strong — and the firm now needed to evaluate potential program modifications to reach a wider group of small business owners. Launched in the aftermath of the Global Financial Crisis, 10,000 Small Businesses provided business education, a wide network, and access to capital to U.S. small business owners through more than a dozen city- and state-based programs and a National Cohort model. By 2020, Goldman Sachs achieved its goal of graduating 10,000 small business owners from the program, and the firm decided to renew the program with the goal of reaching another 10,000. Against the backdrop of the COVID-19 pandemic, which placed unprecedented strain on small business owners across the U.S., the 10,000 Small Businesses program office team expanded the program’s efforts to organize a collective voice for small business owners in U.S. politics, support an internship program that paired community college students with local small businesses, and admit owners of smaller businesses than had previously been accepted into the program. In late 2021, the team considered how to approach its latest effort: supporting Black women business owners in line with the firm’s broader One Million Black Women initiative. As 10,000 Small Businesses expanded its reach to smaller businesses and sole proprietors, what modifications did the team need to make? In what ways did Goldman Sachs need to rethink its work to render its One Million Black Women initiative effective?
Keywords: COVID-19 Pandemic; Small Business; Business Education; Curriculum and Courses; Government and Politics; Knowledge; Knowledge Dissemination; Labor; Employment; Human Capital; Management; Goals and Objectives; Organizations; Mission and Purpose; Corporate Social Responsibility and Impact; Programs; Networks; Social Enterprise; Society; Strategy; Demographics; Diversity; Financial Services Industry; North and Central America; United States; New York (city, NY); New York (state, US)
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Schlesinger, Leonard A., and Julia Kelley. "The Goldman Sachs 10,000 Small Businesses Program: 2009-2021." Harvard Business School Case 322-052, March 2022.

In Data We Trust: Be Mobile Africa and Furthering Financial Inclusion Across the African Continent

By: Lauren Cohen, Grace Headinger and Pierre Marchesseault
  • March 2022 |
  • Case |
  • Faculty Research
To Cédric Jeannot, leveraging technology to promote financial inclusion was personal. After no established financial institution would accept his technology platform to lower transaction costs for free, Jeannot launched FinTech company Be Mobile Africa in May 2020. Within a year, the company had reached over 35 countries with many potential users pending on its waiting lists. A ‘for-profit with purpose’, Be Mobile Africa aimed to lift 100 million people out of poverty by extending financial services to previously unbanked populations across the African continent. Racing towards its goal, the company needed a longer-term expansion strategy to fulfill Jeannot’s mission. Should its growth strategy focus on starting afresh in new markets, or should it dedicate more resources to onboarding prospective users in markets where it already has a foothold? Would the tradeoff of temporarily pulling resources away from this mission to fundraise capital to fund greater long-term successes be worthwhile? Although “In Data We Trust” had served the company well so far, would “In Money We Believe” lead Jeannot to fulfill his ultimate vision?
Keywords: Finance; Fintech; Emerging Market; Fundraising; Financial Inclusion; Strategy; Expansion; Management; Entrepreneurship; Personal Finance; Corporate Social Responsibility and Impact; Growth and Development Strategy; Financial Services Industry; Banking Industry; Africa; Togo; Nigeria; Ghana
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Cohen, Lauren, Grace Headinger, and Pierre Marchesseault. "In Data We Trust: Be Mobile Africa and Furthering Financial Inclusion Across the African Continent." Harvard Business School Case 222-073, March 2022.

The Future of Start-Up Chile

By: Prithwiraj Choudhury, Ruth Costas and Pedro Levindo
  • March 2022 |
  • Case |
  • Faculty Research
In 2021, public accelerator program Start-Up Chile, which ten years earlier had created a global buzz, might be losing its competitive edge to similar programs or one-year visas for digital nomads offered by other countries. The case follows SUP’s CEO, Angeles Romo, as she considers how Chile could remain appealing to world-class entrepreneurs in a post-pandemic world and how to ensure SUP's impact on Chile’s economy.
Keywords: Entrepreneurship; Cultural Entrepreneurship; Social Entrepreneurship; Disruptive Innovation; Innovation Leadership; Disruption; Knowledge Dissemination; Knowledge Sharing; Business Education; Emerging Markets; Cross-Cultural and Cross-Border Issues; Global Strategy; Globalized Economies and Regions; Globalized Markets and Industries; Government Administration; Recruitment; Job Design and Levels; Human Capital; Leading Change; Business and Government Relations; Groups and Teams; Networks; Social and Collaborative Networks; Public Administration Industry; Latin America; Chile
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Choudhury, Prithwiraj, Ruth Costas, and Pedro Levindo. "The Future of Start-Up Chile." Harvard Business School Case 622-080, March 2022.

Sustainability for People and the Planet: Placing Workers at the Center of Sustainability Research

By: Julie Yen, Julie Battilana and Emilie Aguirre
  • 2022 |
  • Chapter |
  • Faculty Research
Though workers face a series of critical challenges in contemporary work organizations, they are often overlooked in conversations about sustainable business. In this chapter, we argue that prioritizing the rights and well-being of workers is a core dimension of sustainability along with the preservation of the environment. We review scholarship on corporate social responsibility, then identify psychological and structural empowerment as two key dimensions of human sustainability. Drawing on empirical findings emerging from research on hybrid organizing, we argue that organizational democracy has the potential to empower workers and promote their well-being, while enabling the simultaneous pursuit of social, environmental, and financial objectives. We propose a research agenda to investigate how democratic organizing and sustainability are intertwined, calling for interdisciplinary research that attends to the importance of legal and institutional frameworks that support organizations’ pursuit of a sustainable future. In doing so, we draw attention to potential synergies as well as conflicts between organizational democracy and sustainability, with implications for worker well-being and inequality.
Keywords: Environmental Sustainability; Employees; Well-being; Corporate Social Responsibility and Impact; Organizational Structure; Social Issues
Citation
Related
Yen, Julie, Julie Battilana, and Emilie Aguirre. "Sustainability for People and the Planet: Placing Workers at the Center of Sustainability Research." Chap. 11 in Handbook on the Business of Sustainability: The Organization, Implementation, and Practice of Sustainable Growth, edited by Gerard George, Martine R. Haas, Havovi Joshi, Anita M. McGahan, and Paul Tracey, 189–214. Edward Elgar Publishing, 2022.

Nexleaf Analytics: Saving the World Using the Internet of Things

By: Frank Nagle
  • March 2022 |
  • Case |
  • Faculty Research
In 2019, a decade after co-founding Nexleaf Analytics, CEO Nithya Ramanathan faced an important decision that would impact the ability of the small, but growing, not-for-profit organization to thrive for another decade. Their sensor technologies and big data analytics helped protect the planet and preserve human life by reducing pollution via smarter cookstoves and enhancing the vaccine storage process to help ensure millions of individuals across the developing world received effective vaccines. They had recently decided to relentlessly focus on these two core areas in which they faced growing competition from for-profit companies (especially in the vaccine domain), but an opportunity had arisen to expand into the neonatal intensive care unit (NICU) space. Although there were some similarities with their existing technology, it would be a large undertaking for the resource-constrained organization. Should they stay focused on growing their vaccine refrigeration efforts to new countries, partner with fridge manufacturers to vertically integrate their offerings, or jump head first into the NICU field which had numerous existing players (none of whom offered what Nexleaf could). Further, as a not-for-profit, should they open source their core intellectual property in the vaccine space in an attempt to become a keystone player for the entire ecosystem, increasing their ability to achieve their mission?
Keywords: Corporate Strategy; Collaborative Innovation and Invention; Technological Innovation; Nonprofit Organizations; Competitive Strategy; Patents; Expansion; Information Technology; Health Industry; Information Industry; Medical Devices and Supplies Industry; Technology Industry
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Nagle, Frank. "Nexleaf Analytics: Saving the World Using the Internet of Things." Harvard Business School Case 722-414, March 2022.

Paul Polman

By: Elizabeth A. Keenan, Youngme Moon and Susie Ma
  • February 2022 |
  • Case |
  • Faculty Research
Over his 40-year career, Paul Polman had led some of the world’s largest consumer goods companies, making his biggest mark as CEO of Unilever—a multi-national corporation that produced everything from soap to soup. Polman was also well-regarded as a leader in corporate social responsibility (CSR) and had consistently staked his career on the message that doing better for the planet and its inhabitants ultimately made for better business. Many called him visionary; others felt he was misguided. But thanks to his sterling business credentials, when Polman spoke, people listened. And speak out he did, trying to win over corporate leaders to his vision of how business should serve society, and not the other way around. Now, having stepped down from Unilever and living in the midst of the biggest global health crisis in a century, he wondered how to rally business and civic leaders to do more to fight climate change, preserve biodiversity, and reduce global inequity.
Keywords: Marketing; Brands and Branding; Marketing Communications; Marketing Strategy; Leadership; Corporate Accountability; Personal Development and Career; Corporate Social Responsibility and Impact; Ethics; Values and Beliefs; Social Issues; Philanthropy and Charitable Giving
Citation
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Keenan, Elizabeth A., Youngme Moon, and Susie Ma. "Paul Polman." Harvard Business School Case 322-098, February 2022.

Business Roundtable 2019 Statement: A New Paradigm or Business as Usual?

By: Charles C.Y. Wang and Amram Migdal
  • February 2022 |
  • Case |
  • Faculty Research
This note focuses on the antecedents of, reactions to, and clarifications about The Business Roundtable’s August 19, 2019, “Statement on the Purpose of a Corporation.” The note includes background information on corporate governance as practiced in the United States in the twentieth and twenty-first centuries. It discusses “managerialism,” “stakeholderism,” and shareholder primacy. The latter view is represented by Milton Friedman’s essay, “The Social Responsibility of Business Is to Increase Its Profits,” which is summarized in the note. The note also includes a history of The Business Roundtable and its periodic statements on topics related to corporate governance, including its original 1997 “Statement on the Purpose of a Corporation.” The note then relays the issuance of the 2019 update to that statement, along with reactions from the popular media, shareholder advocates, academics, and stakeholder governance advocates.
Keywords: Corporate Accountability; Corporate Governance; Business History; Mission and Purpose; Agency Theory; Business and Shareholder Relations; Business and Stakeholder Relations; Corporate Social Responsibility and Impact; United States
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Wang, Charles C.Y., and Amram Migdal. "Business Roundtable 2019 Statement: A New Paradigm or Business as Usual?" Harvard Business School Case 122-023, February 2022.

OneTen: One Million Careers for Black Talent

By: Boris Groysberg, V. Kasturi Rangan, Annelena Lobb and Kerry Herman
  • January 2022 (Revised April 2022) |
  • Case |
  • Faculty Research
The OneTen case study examines the nonprofit organization’s origin story. Its founding team includes a roster of corporate superstars—Ken Chenault (former CEO of American Express), Ken Frazier (former CEO of Merck), Charles Phillips (chair of Infor), Ginni Rometty (former CEO of IBM), and Kevin Sharer (former CEO and chair of Amgen). In May 2020, soon after the murder of George Floyd, this group came together to form a nonprofit that would partner with companies, talent developers, and Black talent, with the goal of hiring one million Black people in the U.S. into jobs with family-sustaining wages over the next 10 years. Equally important is an emphasis on the promotion of talented Black employees within existing companies. The case is set in late 2020, just after the hire of OneTen’s first CEO, Maurice Jones; it explores how the organization was established, structured, and staffed, and how it has so far built its partnerships.
Keywords: Change Management; Demographics; Ethics; Organizations; Social Enterprise; Society
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Groysberg, Boris, V. Kasturi Rangan, Annelena Lobb, and Kerry Herman. "OneTen: One Million Careers for Black Talent." Harvard Business School Case 422-018, January 2022. (Revised April 2022.)

Bee-ing Better at Bombas

By: Elizabeth A. Keenan, Youngme Moon and John Masko
  • January 2022 |
  • Case |
  • Faculty Research
David Heath and Randy Goldberg founded Bombas in 2013 to serve two missions: to deliver the “best socks in the history of feet,” and to donate socks (the most requested item in homeless shelters) to Americans experiencing homelessness. Eight years later, Bombas had established itself mostly through online marketing as a preeminent direct-to-consumer sock maker, and had introduced lines of underwear, T-shirts, and slippers as well. Bombas was also one of America’s most visible buy-one-give-one companies, with over $250 million in annual revenue and 50 million pairs of socks donated. As it grew, however, the company faced mounting challenges. What pace of growth would best allow Bombas to reach new customers while maintaining focus on its social mission? How could the company attract the talent necessary to manage such a complex online operation? And with a sprawling network of 3,500 Giving Partners of varying sizes around the U.S., was it time for Bombas to simplify its giving program?
Keywords: Social Entrepreneurship; Values and Beliefs; Brands and Branding; Marketing Strategy; Digital Marketing; Distribution; Corporate Social Responsibility and Impact; Mission and Purpose; Quality; Business and Stakeholder Relations; Human Needs; Poverty; Growth and Development Strategy; Apparel and Accessories Industry; New York (city, NY)
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Keenan, Elizabeth A., Youngme Moon, and John Masko. "Bee-ing Better at Bombas." Harvard Business School Case 522-038, January 2022.
More Publications

Faculty

V. Kasturi Rangan
George Serafeim
James E. Austin
Rosabeth M. Kanter
Michael W. Toffel
Julie Battilana
Allen S. Grossman
Lynn S. Paine
Michael Chu
Michael E. Porter
Forest L. Reinhardt
Dutch Leonard
→See All

HBS Working Knowlege

    • 03 May 2022

    Can a Social Entrepreneur End Homelessness in the US?

    Re: Brian L. Trelstad
    • 10 Jan 2022

    How to Get Companies to Make Investments That Benefit Everyone

    Re: Frank Nagle
    • 07 Jun 2021

    9 Tips from an Expert Fundraiser: Help Donors 'Invest in Their Passion'

    Re: F. Warren McFarlan
→More Articles

Harvard Business Publishing

    • November 2011
    • Article

    How Great Companies Think Differently

    By: Rosabeth Moss Kanter
    • March 2022
    • Case

    The Goldman Sachs 10,000 Small Businesses Program: 2009-2021

    By: Leonard A. Schlesinger and Julia Kelley
    • 2020
    • Book

    Capitalism at Risk: How Business Can Lead

    By: Joseph L. Bower, Dutch Leonard and Lynn S. Paine
→More Harvard Business Publishing
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