![]() They then obtained CEP ratings for those 416 companies from an independent investment firm that specializes in measuring environmental, social, and governance performance. ![]() They were able to find educational background information on 416 CEOs. Slater and Dixon-Fowler started with a list of the companies on the S&P 5. Finding a relationship between having a CEO with an MBA and having a high CEP could suggest that MBA programs are actually helping companies learn to "go green" and improve their sustainability. Thus, companies with pollution prevention programs, strict policies for recycling and using recycled materials, and demonstrated compliance with environmental regulations will have higher CEP ratings than companies that don't have these things. So, they conducted a study that posed a unique question: Does a CEO's education have any relation to his or her company's corporate environmental performance (CEP)?įirms have higher CEP ratings when they minimize their environmental impact and conserve resources for the future. But Daniel Slater and Heather Dixon-Fowler wanted to see if the numbers backed up these claims. Others feel that an MBA is an irrelevant degree, and that a manager's true education comes from experience. ![]() ![]() Many people believe that all MBAs care about is money. Most executive compensation plans include generous stock-based incentives, and these can drive executives to prioritize stock price over other measures of company well-being. Corporations focus on meeting short-term earnings goals rather than on creating long-term value.Įxecutives' pay exceeds their value to the organization, as indicated by historical measures.Ĭorporations place too much emphasis on pleasing shareholders and not enough on meeting the needs of other stakeholders such as customers, employees, and members of the public.Įxplanation: Companies today are widely believed to overemphasize pleasing shareholders rather than other stakeholders, to focus too much on short-term earnings goals, and to pay their executives disproportionate salaries and bonuses as compared to historical executive compensation (most executives today earn far more than the average worker at their company than was the case a few decades ago). ![]()
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