INSEAD Knowledge - February 2011


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In this edition of INSEAD Knowledge, we look at the status of ethics in business. Are greed and deception still running amuck in banking? Can consumers dictate responsibility in business? Professors N. Craig Smith and Horacio Falcao, and Bill Anderson, Head of Environmental and Social Affairs Asia Pacific of the Adidas Group, share their views.

The doyen of sustainability, John Elkington, discusses the potential for social innovation and entrepreneurship in the competitive world of business. Elkington spoke recently at INSEAD's Singapore campus and is our Big Interview this month.

How Green is our Future? takes the sustainability theme further, with comments from the INSEAD Sustainability Executive Roundtable in Fontainebleau and features interviews with strategist Ravi Fernando and with International Energy Agency Director Nobuo Tanaka.

Though the economic downturn has taken a bite out of corporate profits, some companies are prospering during these tough times. INSEAD Knowledge looks at three such enterprises, whose CEO's attended the Bloomberg Businessweek European Leadership Forum in London recently.

Our Op-Eds feature Professor Theo Vermaelen on how equity carve-outs for corporate social responsibility can keep share price dilution at bay; Sami Mahroum in Abu Dhabi on what it takes to build an economy, and Benjamin Warr on the long road from Copenhagen to Cancun and beyond in the climate change deliberations.

Finally, INSEAD Knowledge looks at ways to refine your business strategy and offers a short list of life-changing technologies...wherein we might just find the next Microsoft!

Enjoy reading and please share your comments.
Best regards,
Shellie Karabell
Editor-in-Chief

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Is "ethics in business" a catch phrase panacea for mistrust in the market place following the economic crisis? Or is it becoming a real part of the fabric of business organisation? INSEAD Knowledge examines how companies and individuals can apply higher ethical standards to labour markets, banking systems and negotiation strategies.


The sweatshop on your conscience: How consumers and marketers are more responsible than they'd like to think Lower consumer prices and higher profit margins take the spotlight off poor working conditions in cheap labour markets. Changing those practices is as much a responsibility of the marketer and consumer as it is of the supplier. INSEAD professor N.Craig Smith explains how and why responsible consumerism matters.	Greed and deception: Is it too late for ethical banking? As it turns out, Big Bang – the deregulation of stock markets across Europe back in 1986 – really was an event that shook the world. Author and independent stock analyst Cyrus Mewawalla tells INSEAD Knowledge that deregulation, greed and deceit are at the root of today’s financial crisis, and suggests ways to return to ethical banking.	The art of the deal: Is ethics in the picture? Can you walk away from the negotiating table with a contract in your pocket and your ethics intact? This is the third and final installment in a series of articles on value negotiation from INSEAD professor Horacio Falcao.
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Putting social innovation and entrepreneurship on the business agenda
John Elkington's work advising businesses on sustainable strategies has earned him numerous accolades including the Dean of Corporate Social Responsibility by BusinessWeek in 2004. Here, he discusses social innovation and entrepreneurship and its potential to become an increasing part of companies' agendas.
» Read more

	The farmer, the scientist and the nuclear engineer: can they together create a sustainable future? A report from INSEAD's Alumni Sustainability Executive Roundtable in Fontainbleau. » Read more
	Billionaires and mud huts: Can Asia solve its real sustainability issues? Asia may be today’s economic miracle but too little water and too much poverty could derail the growth engine of the world. Zoe McKay talked with global strategist, Ravi Fernando. » Read more
	Finding the energy to halve greenhouse gas emissions in half: a reality check Do today's global energy efficiency initiatives work? "Insufficiently ambitious," says Nobuo Tanaka, Executive Director of the International Energy Agency. So what do we need to address the challenge of climate change? » Read more
	Carbon leakage: EU cap-and-trade rules could do more harm than good Despite its good intentions, the next phase of EU emissions trading scheme (to be implemented in 2013) could end up doing more harm than good, both to the global environment and to European industries that must comply with the rules, says David Drake, a PhD candidate in Technology and Operations Management at INSEAD. » Read more


Streamlining costs and statistics pay off When the economy is in a tailspin, companies look for ways to trim costs as well as to grow. Grace Segran in London discovered the truth in bar codes and forecasting.	Keeping spirits up in a downturn Grace Segran reports from London on the current state of the spirits industry.
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	What next after human capital, infrastructure and good governance? It takes more than human capital, infrastructure and good governance to foster economic growth and development, writes Sami Mahroum from INSEAD's campus in Abu Dhabi. » Read more
	Hope, havoc, disillusion and back again? What changed between Copenhagen and Cancun on the climate change agenda? Benjamin Warr of INSEAD's Social Innovation Centre shares his views. » Read more
	Putting a price tag on corporate social responsibility INSEAD professor Theo Vermaelen makes his case for CSR equity carve-outs. » Read more


Will your strategy succeed? What's one of the best ways to gain market share, defy the vagaries of the economy, and adapt to rapidly advancing technology? Booz and Company's Paul Leinwand talks to Cindy Babski about how to win with a capabilities-driven strategy.	The next Microsoft: Here's a partial list... Innovation is flourishing despite a decline in venture capital funding. Silicon Valley veteran Adeo Ressi shares his predictions for life-changing technologies looking for funding.
» Read more	» Read more


Shellie Karabell Editor-in-Chief	Mrinalini Reddy Web Editor	Bachar Bagh, Editor (Knowledge Arabia)	Aileen Huang Editor, Knowledge Chinese	Julian Boudier Audio-Visual Production Manager	Axel Tagliavini Associate Director, Web

« Previous Issues »

Jan 2011	Cultivating Innovation
Dec 2010	Special Edition: Focus on Private Equity
Dec 2010	Women in Business and Society
Nov 2010	Setting of the Rising Sun, as new Asian giants power ahead
Oct 2010	Asian private equity: Coming of age
Sept 2010	Corporate governance: Where did it all go wrong?
July 2010	Putting Europe Back on Track - China/US trade relations
June 2010	INSEAD Leadership Summit Europe (special edition)
May 2010	Social media and marketing - Doing good in business
Apr 2010	Wired in world - Negotiating to win - Too late to get into China?
Mar 2010	Leadership - entrepreneurship - sustainability
Feb 2010	INSEAD Leadership Summit in the Middle East (special edition)
Jan 2010	Top Global CEOs - Diversity in the workplace
Dec 2009	Innovator's DNA - leadership today - visual equity
Nov 2009	Innovation - Finance - MBA oath
Oct 2009	Healthcare: at the crossroads
Sept 2009	Banking one year after Lehman - INSEAD at 50
Aug 2009	Quest for authenticity - Cash is king - Dark side of trust
July 2009	Road to sustainability - New era for innovations
June 2009	Collaboration, creativity and networking
May 2009	The Illusion of Control: Dance with Chance
Apr 2009	Dare and Care: Sustaining Europe's Ambitions
Mar 2009	US economy recovery 'likely' by year-end; Humanitarian Logistics; Innovation Manual
Feb 2009	Women and the 'vision thing'
Jan 2009	Innovating your way to the top
Dec 2008	Can leadership withstand the ravages of the crisis?
Nov 2008	Obama could help US economy recover by mid-2009
Oct 2008	Living with uncertainty (World Knowledge Forum special edition)
Sep 2008	The emergency bailout - heeding the lessons of the Depression
Aug 2008	The future of Chinese capitalism - The changing face of the CIO
Jul 2008	It Starts with One - Successful entrepreneurs
Jun 2008	The Momentum Effect; Global information technology report: Making progress
May 2008	INSEAD Leadership Summit in Europe 2008 (special edition)
Apr 2008	Cross-cultural negotiations; Muhammad Yunus
Mar 2008	Greening the economy: New energy for business (European Business Summit special edition)
Feb 2008	The Experience Trap; Counting the cost
Jan 2008	Fast Strategy: Staying ahead of the game
Dec 2007	Putting leaders on the couch; Creating products for those at the bottom of the pyramid
Nov 2007	INSEAD Leadership Summit in Asia 2007 (special edition)
Oct 2007	The global business leader; Family business on the couch
Sep 2007	In search of blue oceans; The new deal at the top
Aug 2007	X-teams; The money illusion
Jul 2007	INSEAD Leadership Summit in Europe 2007 (special edition)
Jun 2007	Cost innovation and the dragons; The innovation value chain
May 2007	Success, a huge business vulnerability?; Reputational risk management
Apr 2007	Global information technology, the rankings; Closing the deal in negotiations
Mar 2007	Riding rapid economic growth in India and China; Networking is vital for successful managers