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A Financial Times Book of the Year 2020! Should companies be run for profit or purpose? In this ground-breaking book, acclaimed finance professor and TED speaker Alex Edmans shows it's not an either-or choice. Drawing from real-life examples spanning industries and countries, Edmans demonstrates that purpose-driven businesses are consistently more successful in the long-term. But a purposeful company must navigate difficult trade-offs and take tough decisions.
Edmans provides a roadmap for company leaders to put purpose into practice, and overcome the hurdles that hold many back. He explains how investors can discern which companies are truly purposeful and how to engage with them to unleash value for both shareholders and society. And he highlights the role that citizens can play in reshaping business to improve our world. This edition has been thoroughly updated to include the pandemic, the latest research, and new insights on how to make purpose a reality.
Annað
- Höfundur: Alex Edmans
- Útgáfudagur: 2021-11-11
- Hægt að prenta út 2 bls.
- Hægt að afrita 2 bls.
- Format:Page Fidelity
- ISBN 13: 9781009062916
- Print ISBN: 9781009054676
- ISBN 10: 1009062913
Efnisyfirlit
- Half-title
- Reviews
- Title page
- Copyright information
- Contents
- Preface to the Revised Edition
- Introduction
- How to Read this Book
- Part I Why Grow the Pie? Introducing the Idea
- 1 The Pie-Growing Mentality: A New Approach to Business that Works for Both Investors and Society
- The Pie: The Value Created for Society
- The Pie-Splitting Mentality
- The Pie-Growing Mentality
- From Ancillary to Core
- From Errors of Commission to Errors of Omission
- From Value Extraction to Value Creation
- From Ex Ante to Ex Post
- Dealing with Trade-Offs and a Shrinking Pie
- Collective Responsibility
- Why Is Pieconomics So Urgent Now?
- In a Nutshell
- 2 Growing the Pie Doesn't Aim to Maximise Profits - But Often Does: Freeing a Company to Take More I
- Instrumental vs Intrinsic
- Profits vs Externalities
- Triple Bottom Line
- In a Nutshell
- 3 Growing the Pie Doesn't Mean Growing the Enterprise: Three Principles to Guide Trade-Offs and Whic
- Growing the Pie Does Not Mean Ignoring Profits
- Growing the Pie Does Not Mean Growing the Enterprise
- Excessive Growth in Core Business
- Unrelated Expansion into Non-Core Businesses
- Excessive Pursuit of Social Causes
- Decision-Making under Pieconomics
- The Principle of Multiplication
- The Principle of Comparative Advantage
- The Principle of Materiality
- The Principles and Accountability
- In a Nutshell
- 4 Does Pieconomics Work?: Data - Not Wishful Thinking - Shows that Companies Can Both Do Good and Do
- Digging Deeper
- The Peer Review Process
- What Does It All Mean?
- Beyond Colleagues
- Thinking Long Term
- Responsible Investing in a Crisis
- Further Nailing Causality
- The Importance of Principled Investment
- The Other Side of the Coin
- In a Nutshell
- 1 The Pie-Growing Mentality: A New Approach to Business that Works for Both Investors and Society
- 5 Incentives: Rewarding Long-Term Value Creation While Deterring Short-Term Gaming
- Sensitivity
- Simplicity
- Horizon
- Pay Ratios
- When Levels Matter
- In a Nutshell
- 6 Stewardship: The Value of Engaged Investors that Both Support and Challenge Management
- The Long-Term Benefits of Hedge Fund Activism
- The Value of Engagement
- What Strengthens Engagement?
- Beyond Hedge Funds
- Generalised Engagement
- Investor Rights
- Monitoring
- Patience Isn't Always a Virtue
- The Value of Monitoring: The Evidence
- In a Nutshell
- 7 Repurchases: Investing with Restraint, Releasing Resources to Create Value Elsewhere in Society
- Buybacks: Correcting Some Misperceptions
- Buybacks Are a Free Gift to Investors
- Buybacks Are Needed for Investors to Cash Out
- Using Net Income for Buybacks Is at the Expense of Wages
- Buybacks Aren't an Investment
- Profits Should Go to Stakeholders, Not Investors
- A Pieconomics View of Buybacks
- The Evidence
- The Bigger Picture
- Buybacks vs Dividends
- How Buybacks Can Destroy Value - and How to Fix It
- In a Nutshell
- Buybacks: Correcting Some Misperceptions
- 8 Enterprises: The Power of Purpose and How to Make It Real
- Excellence
- Excellence Is the Best Form of Service
- Excellence Can Be Pursued by All Companies at All Times
- Excellence Is Relevant to All Colleagues
- Purpose
- Defining Purpose
- A Purpose Should Be Focused and Selective
- The Why Should Be Based on Comparative Advantage and the Who on Materiality
- A Purpose Is Both Deliberate and Emergent
- Communicating Purpose
- From Reporting to Communication
- Say-on-Purpose
- Embedding Purpose
- Strategy
- Operating Model
- Internal Reporting
- Culture
- Board Ownership
- Stakeholders as Partners
- The Attitude of Empowerment
- The Attitude of Investment
- The Attitude of Reward
- In a Nutshell
- Excellence
- 9 Investors: Turning Stewardship from a Policy into a Practice
- Defining Stewardship
- Embedding Stewardship
- Effective Monitoring
- Specific Third-Party Data Sources
- General Third-Party Data Sources
- Meeting Management
- An Integrated Approach
- Effective Engagement
- Effective Monitoring
- Communicating Stewardship
- Asset Owners
- Selection
- Appointment
- Monitoring
- Proxy Advisors
- The Evidence
- Practising Stewardship
- Equity Analysts
- The Evidence
- Practising Stewardship
- In a Nutshell
- 10 Citizens: How Individuals Can Act and Shape Business, Rather than Be Acted Upon
- Members
- Monitoring
- Engagement - Investors
- Engagement - Customers
- Engagement - Colleagues
- Policymakers
- 1. The Pie-Growing Mentality
- 2. Evidence over Anecdote
- 3. Tangible Versus Intangible
- 4. Ex Ante Versus Ex Post
- 5. System-Wide Thinking
- 6. One Size Rarely Fits All
- 1. Information
- 2. Externalities
- 3. Redistribution
- 4. Financial Literacy
- 5. Competition
- 6. Removing Distortions
- 7. Best Practices
- Influencers
- 1. The Pie-Growing Mentality
- 2. Evidence over Anecdote
- In a Nutshell
- Members
- 11 Growing the Pie More Widely: Win-Win Thinking at the National and Personal Levels
- Battle of the Sexes - the Value of Cooperation
- International Trade
- Employment
- Macroeconomic Policy
- Interpersonal Dynamics
- Mindset
- Embracing Failure
- Service
- Shaping Culture
- Career Choice
- In a Nutshell
- Leaders
- Define the Purpose of Your Enterprise
- Communicate the Delivery of Purpose
- Embed Purpose into Your Enterprise
- Cultivate a Spirit of Excellence and Innovation
- View Stakeholders as Partners in the Enterprise
- Boards
- Own the Enterprise's Purpose
- Monitor the Enterprise's Delivery of Purpose
- Make Leaders Long-Term Owners
- Engage Routinely with Investors
- Understand the Business at Ground Level
- Investors
- Define Your Purpose and Approach to Stewardship
- Embed Stewardship into the Investment Process
- Communicate the Delivery of Stewardship
- Practice Informed Voting
- Engage Routinely with Executives and Directors
- Monitor a Company's Long-Term Value
- Citizens
- As Colleagues, View Yourselves as Having Agency, Regardless of Your Position
- As Customers, Adopt a Citizen Rather than Consumer Mindset
- Keep Informed Using the Best Available Evidence
- As Regulators or Voters, Engage in Diagnosis before Treatment
- Practise the Principles of Pieconomics in Everyday Life
- Appendix A
- Appendix B
- Preface
- Introduction
- Chapter 1
- Chapter 2
- Chapter 3
- Chapter 4
- Chapter 5
- Chapter 6
- Chapter 7
- Chapter 8
- Chapter 9
- Chapter 10
- Chapter 11
- Appendix A
- Appendix B
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- Gerð : 208
- Höfundur : 18034
- Útgáfuár : 2021
- Leyfi : 379