SMG SM 131 Study Guide - Final Guide: Creating Shared Value, Peter Drucker, Socially Responsible Investing

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Kabrina Chang

Document Summary

Portfolio theory (andrew lo): an investment strategy that includes a broad diversity of risk to increase the probability of a return. Creating shared value (lecture) roots of social investing: the apartheid protests in south africa . Negative screen: not investing or associating with something that has potential negative effects: ex: tim didn"t want to invest his money in a fossil fuels or guns company. Consumer sovereignty: consumers wich what"s produced, role of consumer: ex: cocacola introduced c2 but it failed and people doubted the product would last. Blindspots: motivate blindness, ethical fading, mis-applied incentives, indirect blindness, slippery slode, in-group favoritism, over-evaluating outcomes, conflict of interest, implicit bias / prejudice, confirmation bias, rationalization. Do research, etc: what are the critical issues, who are the stakeholders, what are your alternatives, make a decision! Types of ethical frameworks: utilitarianism: consequence based focused framework (bentham) greatest good for. Peter drucker: personal ethics = business ethics (customer is #1)