By Meghna Tare and R. Paul Herman
When you breathe the air, smell the flowers, or pluck a fish from the ocean, the price is free.
Yet nature’s services, evolved over 4.5 billion years, are priceless. No MasterCard needed to benefit from earth, bees, and oceans – priced less than they are worth. In fact, what nature provides is worth at least twice the value of what is counted as revenue and Gross Domestic Product. That is right, for every revenue dollar of your company and our economy, Nature has granted at least twice the value of the top-line.
Back in 1997, a team of scientists estimated the value provided by 16 environmental ecosystems, from forests and trees cleaning the air as Earth’s lungs, to bees fertilizing flowers across gardens and farms.
The Future of Moneyball Management May Be Rooted in CR
By Stephen Jordan and Steve Rochlin
The basic goal of every financial investor is to identify “alpha” investing opportunities. Alpha is gained when an investment generates a higher rate of return than its risk profile would suggest that it generate. Historically, alpha has often been linked to technology breakthroughs, new discoveries, superior insight, and better management practices. Our thesis is that some investors will find alpha by applying “Moneyball” techniques to what used to be seen as the domain of corporate responsibility managers – sustainability and social capital.
The great legends of business management – Frederick Taylor, Ben Graham, Peter Drucker, and Edward Deming all tended to focus on “black boxes” -- aspects of business that were seen as mysteries or unruly or difficult to understand, and they were able to successfully analyze them and give them structure and create processes to replicate successful practices around them.
Continue reading →