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ISBM Pulse: Sustainability

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Book: Grow the Pie

The book, ‘Grow the Pie, by London Business School Professor of Finance Alex Edmans, sets apart the concept of ‘growing the pie’ from the notion of ‘splitting the pie’. The latter suggests that anything a company gives to stakeholders such as increased wages, price reduction, or a better treatment of the environment lowers company profit. A ‘splitting the pie’ approach results in friction, and a trade-off focus. An alternative is the ‘grow the pie’ approach. The main idea is that if companies deliver value to stakeholders, this will actually benefit investors.

Addressing Society’s Sustainability Challenges

Just over a week ago, the Yale School of Management organized their Business Sustainability Summit to commemorate the 50th anniversary of Earth Day. The conference was held virtually as a result of the COVID-19 pandemic. Several business leaders shared details on the sustainability initiatives deployed at their organizations.