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- Faculty Publications (86)
- November 2019
- Case
Hapag-Lloyd AG: Complying with IMO 2020
By: Benjamin C. Esty, Mette Fuglsang Hjortshoej and Emer Moloney
A new environmental regulation known as IMO 2020 was creating what one industry analyst called “the biggest shakeup for the oil and shipping industries in decades.” According to the new regulation, all ocean-going ships would have to limit their sulfur emissions by... View Details
Keywords: Valuation; Ship Transportation; Strategic Planning; Game Theory; Pollutants; Supply Chain; Corporate Accountability; Capital Budgeting; Environmental Sustainability; Governing Rules, Regulations, and Reforms; Governance Compliance; Shipping Industry; Transportation Industry; Germany
Esty, Benjamin C., Mette Fuglsang Hjortshoej, and Emer Moloney. "Hapag-Lloyd AG: Complying with IMO 2020." Harvard Business School Case 220-003, November 2019.
- 2020
- Working Paper
How ESG Issues Become Financially Material to Corporations and Their Investors
By: George Serafeim
Management and disclosure of environmental, social and governance (ESG) issues have received substantial interest over the last decade. In this paper, we outline a framework of how ESG issues become financially material, affecting corporate profitability and valuation.... View Details
Keywords: Materiality; ESG; Pharmaceutical Companies; Business Ethics; Sustainability; Environment; Disclosure; Disclosure And Access; Regulation; Social Impact; Environmental Sustainability; Social Issues; Corporate Governance; Ethics; Corporate Disclosure; Corporate Accountability; Resource Allocation; Finance; Accounting; Valuation
Freiberg, David, Jean Rogers, and George Serafeim. "How ESG Issues Become Financially Material to Corporations and Their Investors." Harvard Business School Working Paper, No. 20-056, November 2019. (Revised November 2020.)
- July 2019
- Article
Market Reaction to Mandatory Nonfinancial Disclosure
By: Jody Grewal, Edward J. Riedl and George Serafeim
We examine the equity market reaction to events associated with the passage of a directive in the European Union (EU) mandating increased nonfinancial disclosure. These disclosures relate to firms’ environmental, social, and governance (ESG) performance and would be... View Details
Keywords: Nonfinancial Information; Nonfinancial Performance; ESG; ESG (Environmental, Social, Governance) Performance; Investor Behavior; Disclosure; Disclosure Regulation; Regulation; Sustainability; Corporate Performance; Information; Corporate Disclosure; Governing Rules, Regulations, and Reforms; Performance; Environmental Sustainability; Corporate Governance; Outcome or Result
Grewal, Jody, Edward J. Riedl, and George Serafeim. "Market Reaction to Mandatory Nonfinancial Disclosure." Management Science 65, no. 7 (July 2019): 3061–3084.
- 2017
- Working Paper
Creating the Market for Organic Wine: Sulfites, Certification, and Green Values
By: Geoffrey Jones and Emily Grandjean
This working paper examines the history of organic wine, which provides a case study of failed category creation. The modern organic wine industry emerged during the 1970s in the United States and Western Europe, but it struggled to gain traction compared to other... View Details
Keywords: Product Launch; Failure; Problems and Challenges; Complexity; Governing Rules, Regulations, and Reforms; Agriculture and Agribusiness Industry; Food and Beverage Industry
Jones, Geoffrey, and Emily Grandjean. "Creating the Market for Organic Wine: Sulfites, Certification, and Green Values." Harvard Business School Working Paper, No. 18-048, December 2017.
- October 2017
- Supplement
Turnaround at Norsk Gjenvinning (B)
By: George Serafeim
The case describes the impact of Norsk Gjenvinning's (NG) transformation efforts on reducing corruption and non-compliance within the Norwegian waste management industry. View Details
Keywords: Change Leadership; Governance; Compliance; Waste Management; Environmental Impact; Social Responsibility; Industry Regulation; Regulatory Enforcement; Change Management; Crime and Corruption; Governance Compliance; Wastes and Waste Processing; Norway
Serafeim, George, and David Freiberg. "Turnaround at Norsk Gjenvinning (B)." Harvard Business School Supplement 118-033, October 2017.
- October 2017 (Revised October 2022)
- Case
JetBlue: Relevant Sustainability Leadership (A)
By: George Serafeim and David Freiberg
In 2017, JetBlue, the airline founded on the mission to “bring humanity back to air travel,” was considering becoming one of the first companies to report its sustainability performance according to the Sustainability Accounting Standards Board (SASB) standards. SASB... View Details
Keywords: Sustainability; Metrics; Leadership And Change Management; Airlines; Innovation; Purpose; ESG; ESG (Environmental, Social, Governance) Performance; Sustainability Reporting; Change Management; Leadership; Financial Reporting; Environmental Sustainability; Mission and Purpose; Reports; Competitive Strategy; Measurement and Metrics; Corporate Social Responsibility and Impact; Air Transportation Industry; United States
Serafeim, George, and David Freiberg. "JetBlue: Relevant Sustainability Leadership (A)." Harvard Business School Case 118-030, October 2017. (Revised October 2022.)
- 2018
- Working Paper
How Scheduling Can Bias Quality Assessment: Evidence from Food Safety Inspections
By: Maria Ibanez and Michael W. Toffel
Many production processes are subject to inspection to ensure they meet quality, safety, and environmental standards imposed by companies and regulators. Inspection accuracy is critical to inspections being a useful input to assessing risks, allocating quality... View Details
Keywords: Assessment; Bias; Inspection; Scheduling; Econometric Analysis; Empirical Research; Regulation; Health; Food; Safety; Quality; Performance Consistency; Performance Evaluation; Food and Beverage Industry; Service Industry
Ibanez, Maria, and Michael W. Toffel. "How Scheduling Can Bias Quality Assessment: Evidence from Food Safety Inspections." Harvard Business School Working Paper, No. 17-090, April 2017. (Revised October 2018. Formerly titled "Assessing the Quality of Quality Assessment: The Role of Scheduling". Featured in Forbes, Food Safety Magazine, and Food Safety News.)
- February 2017 (Revised June 2017)
- Case
ExxonMobil: Business as Usual? (A)
By: George Serafeim, Shiva Rajgopal and David Freiberg
Climate change was becoming an important societal and business issue as more governments were introducing climate change related regulations and investors became increasibly worried about stranded assets within oil and gas firms. In September 2016, the U.S. Securities... View Details
Keywords: Oil & Gas; Oil Prices; Oil Companies; Asset Impairment; Predictive Analytics; Sustainability; Environmental Impact; Innovation; Disclosure; Accounting; Valuation; Climate Change; Renewable Energy; Environmental Sustainability; Financial Reporting; Energy Industry
Serafeim, George, Shiva Rajgopal, and David Freiberg. "ExxonMobil: Business as Usual? (A)." Harvard Business School Case 117-046, February 2017. (Revised June 2017.)
- January 23, 2017
- Article
Trump Has a Great Opportunity to Save Our Environment
By: Vanessa Burbano, Magali Delmas, Marian Chertow, Glen W. S. Dowell, Rodolphe Durand, Andrew J. Hoffman, Guy Holburn, Andrew A. King, Michael Lenox, Lin Lerpold, Thomas Lyon, John W. Maxwell, Eric Orts, N. Craig Smith, John Sterman, Michael W. Toffel, L. Beril Toktay, David Vogel, Judith Walls, Frank Wijen, Jeff York and Maurizio Zollo
Keywords: Environment; Regulation; Regulator Leniency; Regulatory Enforcement; Environmental Policy; Environmental Regulations; United States
Burbano, Vanessa, Magali Delmas, Marian Chertow, Glen W. S. Dowell, Rodolphe Durand, Andrew J. Hoffman, Guy Holburn, Andrew A. King, Michael Lenox, Lin Lerpold, Thomas Lyon, John W. Maxwell, Eric Orts, N. Craig Smith, John Sterman, Michael W. Toffel, L. Beril Toktay, David Vogel, Judith Walls, Frank Wijen, Jeff York, and Maurizio Zollo. "Trump Has a Great Opportunity to Save Our Environment." The Hill (January 23, 2017).
- May 2016 (Revised April 2019)
- Case
Olivia Lum: Wanting to Save the World
By: Geoffrey Jones and Essie Alamsyah
This case considers the entrepreneurial career of Olivia Lum, who founded the Singaporean water company Hyflux in 1989. An orphan born in Malaysia, Lum provides a rare case of an entrepreneurial success in a country whose economic success has primarily rested on... View Details
Keywords: Industrial Organization; Chinitz; Agglomeration; Clusters; Cities; Mine; Environmental Management; Operations Management; Sustainable Operations; Environmental Regulation; Entrepreneurship; Globalization; History; Operations; Management; Environmental Sustainability; Green Technology Industry; Utilities Industry; China; Singapore
Jones, Geoffrey, and Essie Alamsyah. "Olivia Lum: Wanting to Save the World." Harvard Business School Case 316-178, May 2016. (Revised April 2019.)
- 2016
- Book
Strategy Beyond Markets
By: John de Figueiredo, Michael Lenox, Felix Oberholzer-Gee and Rick Vanden Bergh
Strategy beyond markets has been an active area of research inquiry since the early 1990s. Since its inception, the scholarship emanating from this research stream has grown substantially in quantity, quality, and breadth. Likewise, firms across the world have... View Details
Keywords: Strategy
Figueiredo, John de, Michael Lenox, Felix Oberholzer-Gee and Rick Vanden Bergh, eds. Strategy Beyond Markets. Vol. 34, Advances in Strategic Management. Emerald Group Publishing, 2016.
- January 2016 (Revised February 2016)
- Course Overview Note
The Sustainable Core: Operations Management
By: Michael W. Toffel and L. Beril Toktay
This note is designed to help faculty embed environmental sustainability content into their core Operations Management course at the MBA or undergraduate level. It can also be used to identify cases with environmental content that can be used in operations electives... View Details
Keywords: Environmental Management; Operations Management; Sustainable Operations; Environmental Regulation; Operations; Supply Chain; Supply Chain Management; Agriculture and Agribusiness Industry; Biotechnology Industry; Food and Beverage Industry; Construction Industry; Forest Products Industry; Retail Industry
Toffel, Michael W., and L. Beril Toktay. "The Sustainable Core: Operations Management." Harvard Business School Course Overview Note 616-022, January 2016. (Revised February 2016.)
- August 2015 (Revised October 2017)
- Case
Turnaround at Norsk Gjenvinning (A)
By: George Serafeim
Erik Osmundsen, CEO of Norsk Gjenvinning (NG), had initiated a program to strenghten corporate governance, eliminate corruption and improve compliance, and as a result the company had experienced a turnover of almost half of its top 70 line managers and strained... View Details
Keywords: Change Leadership; Governance; Compliance; Waste Management; Environmental Impact; Social Responsibility; Industry Regulation; Regulatory Enforcement; Turnaround; Turn Around Management; Corruption; Leading Change; Change Management; Crime and Corruption; Governance Compliance; Wastes and Waste Processing; Industrial Products Industry; Norway; Scandinavia; Europe
Serafeim, George, and Shannon Gombos. "Turnaround at Norsk Gjenvinning (A)." Harvard Business School Case 116-012, August 2015. (Revised October 2017.)
- March 2014
- Case
Jurlique: Globalizing Beauty from Nature and Science
By: Geoffrey Jones and Andrew Spadafora
Considers the marketing and strategic challenges faced by natural beauty brands using the case of Australian-based Jurlique, which was acquired by Pola of Japan in 2011. The case opens two years later in July 2013 when Sam McKay, the chief executive officer, on a visit... View Details
Keywords: Australia; China; Environmental Strategies; Green Business; Marketing; Entrepreneurship; Globalization; Beauty and Cosmetics Industry; China; Australia; United States
Jones, Geoffrey, and Andrew Spadafora. "Jurlique: Globalizing Beauty from Nature and Science." Harvard Business School Case 314-087, March 2014.
- March 2014
- Module Note
Implementing Environmentally Sustainable Operations
Keywords: Sustainability; Sustainability Management; Sustainability Reporting; Sustainable Supply Chains; Sustainable Operations; Environment; Environmental And Social Sustainability; Environmental Management; Environmental Operations; Environmental Performance; Environmental Policy; Environmental Protection; Environmental Strategy; Environmental Regulation; Operations Management; Operations Strategy; Supply Chain Management; Operations; Supply Chain; Business Processes; Corporate Social Responsibility and Impact; Performance Evaluation; Performance Improvement; Safety; Social Enterprise; Quality; Production; Working Conditions; Animal-Based Agribusiness; Buildings and Facilities; Agriculture and Agribusiness Industry; Apparel and Accessories Industry; Biotechnology Industry; Construction Industry; Manufacturing Industry
Toffel, Michael W. "Implementing Environmentally Sustainable Operations." Harvard Business School Module Note 613-090, March 2014.
- October 2013
- Article
How Firms Respond to Mandatory Information Disclosure
By: Anil R. Doshi, Glen W.S. Dowell and Michael W. Toffel
Mandatory information disclosure regulations seek to create institutional pressure to spur performance improvement. By examining how organizational characteristics moderate establishments' responses to a prominent environmental information disclosure program, we... View Details
Keywords: Information Disclosure; Institutional Theory; Environmental Strategy; Mandatory Disclosure; Environmental Performance; Information; Corporate Disclosure; Governing Rules, Regulations, and Reforms; Performance Improvement; Environmental Sustainability; Manufacturing Industry; United States
Doshi, Anil R., Glen W.S. Dowell, and Michael W. Toffel. "How Firms Respond to Mandatory Information Disclosure." Strategic Management Journal 34, no. 10 (October 2013): 1209–1231. (Featured in The Regulatory Review.)
- May–June 2013
- Article
Can Global Brands Create Just Supply Chains? Response: Promoting Political Mobilization
By: Jodi L. Short and Michael W. Toffel
Codes of conduct indicate that working conditions are improving overall at the factories being monitored by multinational corporations, and that these codes of conduct also create possibilities for political mobilization that can improve labor conditions more broadly. View Details
Keywords: Regulation; Auditing; Labor Relations; Occupational Safety; Environmental Operations; Environmental Regulation; Employees; Labor; Labor and Management Relations; Governing Rules, Regulations, and Reforms; Manufacturing Industry; China; Bangladesh; India; Honduras; Nicaragua; Pakistan; Guatemala; Malaysia; Viet Nam
Short, Jodi L., and Michael W. Toffel. "Can Global Brands Create Just Supply Chains? Response: Promoting Political Mobilization." Boston Review 38, no. 3 (May–June 2013).
- January 2013
- Case
Luotang Power: Variances Explained
By: Robert Simons and Craig Chapman
The general manager of Luotang Power, a coal-fired power plant located in central China, reviews annual results before a meeting with the board of directors. He thought the company performed well during the year and both plant availability and fuel economy had improved... View Details
Keywords: China; Financial Statements; Management Accounting; Variance Analysis; Environmental Regulations; Incentives; Electric Power Generation; Contracts; Valuation; Energy Generation; Accounting; Performance Evaluation; Energy Industry; China
Simons, Robert, and Craig Chapman. "Luotang Power: Variances Explained." Harvard Business School Brief Case 913-533, January 2013.
- December 2012 (Revised November 2014)
- Case
W.R. Grace & Co.: Dealing with Asbestos Torts
By: Stuart C. Gilson and Sarah L. Abbott
A manufacturer of building products and specialty chemicals, W. R. Grace & Co. filed for Chapter 11 bankruptcy in 2001 in response to a flood of lawsuits alleging that its products contained asbestos, and had caused hundreds of thousands of people to contract... View Details
Keywords: Bankruptcy Reorganization; Business Failures; Environmental Regulations; Class Action Lawsuits; Natural Environment; Valuation; Health Disorders; Capital Structure; Restructuring; Lawsuits and Litigation; Chemicals; Crisis Management; Insolvency and Bankruptcy; Legal Liability; Construction Industry; Chemical Industry; United States
Gilson, Stuart C., and Sarah L. Abbott. "W.R. Grace & Co.: Dealing with Asbestos Torts." Harvard Business School Case 213-046, December 2012. (Revised November 2014.)
- 2012
- White Paper
Robust Enforcement Should Complement Voluntary Regulation
By: Jodi L. Short and Michael W. Toffel
Spurred by the anti-regulation movement that started in the 1970s, voluntary self-regulation programs have emerged in many regulatory agencies, seeking to increase cooperation between government and industry to achieve greater and more cost-effective compliance.... View Details
Short, Jodi L., and Michael W. Toffel. "Robust Enforcement Should Complement Voluntary Regulation." Georgetown University Economic Policy Vignette, September 2012.