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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

How to Lead in the Stakeholder Era: Focus on Purpose and People. The Profits Will Follow

By: Hubert Joly
  • 2025 |
  • Chapter |
  • Faculty Research
The world is clearly facing multifaceted crises, including a societal crisis, an environmental crisis, and rising geopolitical tensions. In the face of these challenges, there is a growing realization that business and society cannot thrive if employees, customers, and communities are not healthy; if our planet is on fire; and if our society is fractured. More and more leaders believe that creating a better and sustainable future requires corporations to serve all their stakeholders—not just their investors—in a harmonious fashion. To make this transition, leaders need to evolve how they think about their mission and how they lead. According to Hubert Joly, the former chairman and CEO of Best Buy, we need leaders who, in both good times and bad, are keen to pursue a noble purpose, are ready to put people at the center of it, and are dedicated to creating an environment where every employee can blossom. In short, we need leaders who will embrace a declaration of interdependence. This is how we can create a more sustainable future. This is how business can be a force for good and do well by doing good.
Keywords: Leadership; Business and Stakeholder Relations; Corporate Social Responsibility and Impact
Citation
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Joly, Hubert. "How to Lead in the Stakeholder Era: Focus on Purpose and People. The Profits Will Follow." Chap. 10 in HBR's 10 Must Reads on Leadership. Updated, Expanded, 191–202. Harvard Business Review Press, 2025.

Nectar Community Investments

By: Emily R. McComb and David Allen
  • August 2025 |
  • Case |
  • Faculty Research
This case explores Community Development Financial Institutions (CDFIs) and asks more broadly how community finance organizations should balance their own sustainability with their mission to create impact in society. It focuses on Nectar Community Investments, a Massachusetts-based CDFI that was the first Black-led loan fund in the state and provided capital and advisory services to Black, Latino, and other low-income communities, aiming to close persistent racial wealth gaps and transform an inequitable economic system. Formed from the 2022 merger of Mill Cities Community Investments, which primarily served Latinos in the Merrimack Valley in the north of the state, and the Foundation for Business Equity, which advised entrepreneurs of color around Boston, Nectar was trying to grow its small-business and residential lending programs. But the kinds of loans it made had risks, and the business advisory services it offered its clients were expensive. One of its most creative deals had helped Sweet Grace Heavenly Cakes, a beloved Dominican-owned bakery in Lawrence, to rebuild after a fire in 2023. But by May 2025, a year after Nectar had supplied capital through an equity investment that was structured to mimic a loan, the bakery had still not reopened. Was this the kind of deal that best served Nectar’s goals?
Keywords: Race; Income; Financial Institutions; Financing and Loans; Corporate Social Responsibility and Impact; Nonprofit Organizations; Urban Development; Financial Services Industry; United States; Massachusetts; Boston
Citation
Educators
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McComb, Emily R., and David Allen. "Nectar Community Investments." Harvard Business School Case 226-016, August 2025.

Heritage Foundation & Project 2025

By: Caroline M. Elkins, Debbie Millman, Peter Litzow and Grace Laine
  • August 2025 |
  • Case |
  • Faculty Research
In April 2023, conservative think tank The Heritage Foundation released “Project 2025,” a sprawling, 900-page policymaking blueprint for a potential conservative administration. The document soon achieved a notoriety rare for think tank work. Democrats rallied around opposing its more controversial proposals; even the Trump campaign tried to distance itself from the mandate’s influence. Upon Trump’s victory in the 2024 election, however, the President-elect named key Project 2025 collaborators to his administration and appeared to draw on the document for policymaking guidance (one study found that three-quarters of his executive orders in the first two months had some link to the mandate). Project 2025’s influence on Trump 2.0 seemed to have just begun. What exactly was Project 2025, and what conditions had led to its success? What impact would its success have on the think tank landscape, the policymaking world, and society at large? And what role did The Heritage Foundation, and think tanks more broadly, play in how Americans understood themselves, their nation, and the global system in which they lived?
Keywords: Non-Governmental Organizations; Nonprofit Organizations; Power and Influence; Government Administration; Government Legislation; Political Elections; Business and Government Relations; Public Opinion; Social Issues; United States
Citation
Educators
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Elkins, Caroline M., Debbie Millman, Peter Litzow, and Grace Laine. "Heritage Foundation & Project 2025." Harvard Business School Case 726-016, August 2025.

Bridging Trust and Tech: Digitizing Morocco's Financial System

By: Lauren Cohen and Sophia Pan
  • August 2025 (Revised September 2025) |
  • Case |
  • Faculty Research
Fadwa Jouali, Senior Expert of Payment Development and FinTechs at Bank Al-Maghrib (Central Bank of Morocco), wondered how she could fast-track adoption of the country’s mobile payments system. Historically, many Moroccans had never held a bank account, perhaps due to cultural preferences towards cash. The Central Bank of Morocco succeeded in creating a National Payment System, which would allow consumers and merchants alike to facilitate transactions through a mobile device. However, adoption faltered behind expectations. Comparing progress to that of Pix, the payment scheme led by Brazil, Morocco’s mobile payments adoption was underwhelming. Jouali recognized that Morocco had unique characteristics, such as lower costs and a lingering presence of consumer distrust. Taking this into account, how would she help nurture the FinTech industry in Morocco to ensure broad stakeholder engagement and create the right incentives for the adoption of mobile payments?
Keywords: Technology Platform; Mobile Technology; Online Technology; Technology Adoption; Urban Development; Behavior; Attitudes; Motivation and Incentives; Trust; Technological Innovation; Behavioral Finance; Social Entrepreneurship; Central Banking; Geographic Location; Government Administration; Adoption; Culture; Financial Services Industry; Morocco
Citation
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Cohen, Lauren, and Sophia Pan. "Bridging Trust and Tech: Digitizing Morocco's Financial System." Harvard Business School Case 226-011, August 2025. (Revised September 2025.)

Boards Can Continue to Lead the Way on Climate Governance

By: Lynn S. Paine and Suraj Srinivasan
  • August 18, 2025 |
  • Article |
  • Harvard Business Review Digital Articles
During the past year, political and investor pushback against corporate climate efforts has intensified. Nearly 320 anti-ESG bills have been introduced across U.S. state legislatures since 2021. The U.S. SEC has all but repealed its climate-related disclosure rules, and pending climate-disclosure rules are mired in litigation. Yet the underlying risks associated with climate change—from supply-chain disruption to asset impairment and shifting consumer preferences—haven’t disappeared. If anything, they are accelerating. This article builds on the authors’ 2024 HBR article How Robust Is Your Climate Governance? with updated guidance to help corporate boards navigate the shifting climate landscape and prepare for heightened scrutiny in today’s social and political context.
Keywords: Governing and Advisory Boards; Climate Change; Environmental Sustainability; Corporate Social Responsibility and Impact
Citation
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Paine, Lynn S., and Suraj Srinivasan. "Boards Can Continue to Lead the Way on Climate Governance." H08V4D. Harvard Business Review Digital Articles (August 18, 2025).

A Concise Business Guide to Climate Change: What Managers, Executives, and Students Need to Know

By: J. Gunnar Trumbull
  • 2025 |
  • Book |
  • Faculty Research
Understanding the ground rules of climate change for business.

Climate has changed the game for businesses around the world. With climate-related disasters costing billions in damages and public pressure rising, over a hundred nations joined the 2015 Paris Agreement, setting 2050 as the target for net-zero carbon emissions. Thousands of companies have registered with the Carbon Disclosure Project. In a recent survey of large, global firms, one-third reported that climate change was already affecting their operations.

Business leaders need help navigating this complex, fast-changing environment. Amid a flood of new policies and information, how can you tell what news matters and what impact it will have? Which arguments and reports are grounded in sound science and economics and which are not?

This indispensable guidebook by Harvard Business School professor and policy expert Gunnar Trumbull answers this need. As managers around the world confront the reality of climate change and educate themselves about how it is affecting their businesses, A Concise Business Guide to Climate Change provides a single, short, and accessible account of the information crucial to understanding and addressing these challenges. What causes climate change? How do countries and companies measure their own impact on global climate? What is the role of carbon markets? How are governments responding? What kind of corporate emissions targets make sense, and how can they be achieved? In crisp, reader-friendly, and data-rich chapters, Trumbull presents the basic scientific, economic, policy, and accounting frameworks that managers need in order to answer these questions.

Effective as an overview or as a reference on specific challenges, this book is your go-to business guide for dealing with climate change.
Keywords: Climate Change; Environmental Sustainability; Corporate Social Responsibility and Impact; Business or Company Management; Governing Rules, Regulations, and Reforms
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Trumbull, J. Gunnar. A Concise Business Guide to Climate Change: What Managers, Executives, and Students Need to Know. Boston, MA: Harvard Business Review Press, 2025.

Toilets for the Underserved: The SURT Commercialization Challenge

By: Maria P. Roche, Anne Marie Knott and Alexander Oettl
  • July 2025 |
  • Case |
  • Faculty Research
In 2021, a breakthrough in sanitation technology developed under the Gates Foundation’s “Reinvent the Toilet” initiative stood ready for commercialization. The Single User Reinvented Toilet (SURT), engineered by Dr. Shannon Yee, offered an off-grid, self-contained system capable of processing waste, generating water, and reducing environmental impact. Despite technical success, bringing the SURT to market faced complex challenges in behavior change, infrastructure compatibility, financing models, and stakeholder incentives. This case explores the commercialization dilemma: Should SURT be piloted independently in a developing market, licensed to appliance firms, or tailored for government/military procurement? Students must grapple with the strategic, operational, and ethical complexities of scaling a technology designed to serve the world’s most underserved populations.
Keywords: Technological Innovation; Commercialization; Social Issues; Social Enterprise; Public Sector; Private Sector; Market Entry and Exit; Strategic Planning; Engineering; Infrastructure; Innovation Strategy; Utilities Industry; Consumer Products Industry; United States; South Africa; India; France
Citation
Educators
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Roche, Maria P., Anne Marie Knott, and Alexander Oettl. "Toilets for the Underserved: The SURT Commercialization Challenge." Harvard Business School Case 726-369, July 2025.

Mother's Home: Eradicating Social Orphancy in Kazakhstan

By: Boris Groysberg and Annelena Lobb
  • July 2025 |
  • Case |
  • Faculty Research
Mother’s Home International Foundation, a Kazakhstani foundation, had reduced the number of children living in orphanages in Kazakhstan from roughly 10,000 to 4,000 over 12 years, building crisis centers for new mothers to help them keep their babies and stabilize their lives, and working with adoptive parents for better outcomes. The foundation had begun to expand internationally, first to other countries that were part of the former USSR and then beyond. What was the best expansion strategy for them? Was every part of their model portable to other countries?
Keywords: Business Model; Nonprofit Organizations; Social Issues; Expansion; Kazakhstan
Citation
Educators
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Groysberg, Boris, and Annelena Lobb. "Mother's Home: Eradicating Social Orphancy in Kazakhstan." Harvard Business School Case 426-012, July 2025.

Flanner House and Community-Led Development

By: Brian Trelstad and Ai-Ling Jamila Malone
  • July 2025 |
  • Case |
  • Faculty Research
In 2025, Brandon Cosby, CEO of Flanner House—a century-old nonprofit in Indianapolis’s Near Northwest neighborhood—faced a critical juncture as rising displacement pressures and funding uncertainty threatened the gains made under his leadership. Since taking the helm in 2016, Cosby had transformed the organization from a struggling, underutilized service provider into a vibrant community anchor guided by a model he called “holonomy,” which integrated food justice, early childhood education, workforce development, mental health, and housing. His initiatives included launching Indiana’s only Black-owned bookstore, establishing an urban farm, café and bodega, expanding culturally grounded mental health services, and creating workforce pathways. As nearby developments like the 16 Tech innovation district and Indiana University’s medical campus drove up housing costs and attracted new residents, Cosby aimed to protect the existing community by building a new Flanner House facility and a 120-unit affordable housing development. However, securing sufficient funding—particularly capital not tied to market-rate housing—remained a challenge. This case explores Cosby’s leadership, the complexities of community development in historically marginalized neighborhoods, and the tension between inclusive economic growth and gentrification.
Keywords: Change; Change Management; Transformation; Customer Focus and Relationships; Economic Growth; Education; Early Childhood Education; Learning; Teaching; Ethics; Fairness; Moral Sensibility; Entrepreneurship; Food; Urban Scope; Philanthropy and Charitable Giving; Government and Politics; Employment; Leadership; Leading Change; Crisis Management; Strategic Planning; Partners and Partnerships; Problems and Challenges; Projects; Risk and Uncertainty; Social Enterprise; Nonprofit Organizations; Trust; Reputation; Power and Influence; Social Issues; Poverty; Strategy; Expansion; Diversification; Integration; System; Complexity; Equality and Inequality; Theory; Agriculture and Agribusiness Industry; Construction Industry; Education Industry; Financial Services Industry; Food and Beverage Industry; Health Industry; Music Industry; Real Estate Industry; United States; Indiana; Indianapolis
Citation
Educators
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Trelstad, Brian, and Ai-Ling Jamila Malone. "Flanner House and Community-Led Development." Harvard Business School Case 325-130, July 2025.

Khabar Lahariya

By: Ranjay Gulati and Kanika Jain
  • June 2025 |
  • Case |
  • Faculty Research
Founded and run entirely by women, Khabar Lahariya was a leading digital media portal, known for its uniquely feminist perspective and rural focus. It started in 2002 as a non-profit print publication, and by 2023, had evolved into a multimedia news site that was part of a for profit, socially-focused company—Chambal Media. Over the years, it had trained several rural women, many from marginalized communities, to become reporters. Chambal Media also created audiovisual and written content on gender, media, and development for non-profit and corporate clients. In 2021, the organization launched Chambal Academy, an online journalism course for rural women. Despite these various ventures, the company was yet to find a profitable and scalable model. What kind of projects should Chambal Media take on? Should they focus entirely on revenue or also consider a project’s impact? What kind of business model would allow Chambal Media to achieve performance with purpose?
Keywords: Digital; Transition; Decision Making; Growth and Development; Management; Media; Social Enterprise; Mission and Purpose; Business Model; Leadership; Gender; Curriculum and Courses; Training; Rural Scope; Business Strategy; Journalism and News Industry; Media and Broadcasting Industry; Publishing Industry; Asia; South Asia; India
Citation
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Gulati, Ranjay, and Kanika Jain. "Khabar Lahariya." Harvard Business School Case 425-109, June 2025.
More Publications

Faculty

V. Kasturi Rangan
George Serafeim
Michael W. Toffel
Rosabeth M. Kanter
James E. Austin
Lynn S. Paine
Julie Battilana
Allen S. Grossman
Brian L. Trelstad
Geoffrey G. Jones
Forest L. Reinhardt
Michael E. Porter
→See All

HBS Working Knowlege

    • 09 Apr 2024

    Sustaining a Legacy of Giving in Turkey

    Re: Christina R. Wing
    • 05 Dec 2023

    Tommy Hilfiger’s Adaptive Clothing Line: Making Fashion Inclusive

    • 15 Aug 2023

    Why Giving to Others Makes Us Happy

    Re: Ashley V. Whillans
→More Articles

Harvard Business Publishing

    • August 18, 2025
    • Article

    Boards Can Continue to Lead the Way on Climate Governance

    By: Lynn S. Paine and Suraj Srinivasan
    • August 2025 (Revised September 2025)
    • Case

    Bridging Trust and Tech: Digitizing Morocco's Financial System

    By: Lauren Cohen and Sophia Pan
    • 2025
    • Book

    A Concise Business Guide to Climate Change: What Managers, Executives, and Students Need to Know

    By: J. Gunnar Trumbull
→More Harvard Business Publishing
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