
BREAKTHROUGHS
Par HEC Paris
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New Odyssey 3.14 Adds Social Rights and Sustainability to Business Model
HEC Professors Laurence Lehmann Ortega and Hélène Musikas have been working together for over 15 years on a business framework they call Odyssey 3.14. This strategy helps guide companies to better invest in business models that promote innovation and sustainability. The result is a book which entered its third edition in September, entitled “(Re)invent Your Business Model with Odyssey 3.14”. The two academics describe these three pillars and 14 directions which have evolved significantly in the past decades.
Find the written highlights on Knowledge@HEC here.
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New Research Underlines Great Divide between E.U. and its Citizens
How can the E.U. respond to the growing clamor for more citizen participation in its institutions? In a wide-ranging podcast, the Jean Monnet Professor in EU Law, Alberto Alemanno, proposes a permanent European Citizens Assembly to bring E.U. voters and their representatives closer together. The HEC professor also explores how lobbies can become a force for promoting social change. He also points out structural problems within the E.U. which are stymying the continent’s youth. Finally, Alemanno’s research with fellow academic Elie Sung pinpoints the oft-neglected impact of lobbies on judicial courts by interest groups– which are having devastating effects on societal issues like women’s and LBGTQI+ rights.
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FTX Scandal Reflects Complex Dance between Off-Chain Practices and Blockchain Accounting
The FTX cryptocurrency scandal illuminates the critical caveats to the world of blockchains. Since December 2022 and the arrest of FTX founder Sam Bankman Fried, this affair has rocked the world of cryptocurrencies and the on-chain features that underpins its entire existence. It also reveals the impact of off-chain factors involved in blockchain operations. Recent research by professors Dane Pflueger (HEC Paris), Martin Kornberger (Vienna University) and Jan Mouritsen (Copenhagen Business School) sheds light on the FTX and other scandals that are unfolding. Their December 2022 publication in the European Accounting Review, explores the issues of governance, organizing, and trust that buttress blockchain accounting. Speaking from the HEC campus near Paris, Pflueger challenges the notion some have that blockchain technology does not need intermediaries like accountants to function.
Read the summary on Knowledge@HEC here.
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Creative Destruction Lab Tackles AI, Geopolitics and Ethics in Historic Toronto Session
Around 1,200 participants congregated in Toronto for the first in-person CDL Super Session in four years. The two-day event featured intense exchanges between startups from the 24 CDL streams, mentors, researchers and academics. There were equally hard-hitting exchanges on AI, geopolitical shifts in innovation and the advancement of humanlike intelligence. HEC Paris sent a strong delegation to Canada to exchange on its growing involvement in this objective-based program for massively scalable, seed-stage companies. A Breakthroughs special brings you an extended program highlighting the key exchanges during this third in-person Super Session.
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Decisions Under Uncertainty: Lessons for Future Black Swans
On the eve of the 11th annual D-Tea (promoting Dialogues between Theory, Experimental findings and Applications of decision-making, hence the acronym), we talk to its co-organizer Professor Itzhak Gilboa. Last year, Itzhak was ranked by Stanford University in the world’s top six theoretical economists. His main interest is in decision under uncertainty and decision models whereby uncertainty can’t be quantified. That is called non-Bayesian decision models – as opposed to the Bayesian approach which assigns probabilities based on experience or best guesses. Itzhak questions these axioms, or self-evident truths. He believes his research can help answer unforeseen crises, called black swans, like the war in Ukraine, health pandemics or the climate crisis.
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How the Global Shipping Industry Evades Corporate Responsibilities in the 2.0 Age
HEC Associate Professor Guillaume Vuillemey explores how the maritime shipping industry has evolved in the past 40 years to systematically evade its corporate responsibilities. In his groundbreaking research Vuillemey reveals how this industry – which handles over 80% of global trade flows – uses flags of convenience and limited liability to flout international and moral law. This has repercussions on the environment and basic human rights. In a long interview, Vuillemey outlines his approach of this industry and its links to what some are calling the “dark side of globalization”. The exchange is followed by an on-the-ground report from ChangeNOW 2023 Summit on its analysis to the shipping sector.
Read the summary on Knowledge@HEC.
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HEC PhD Graduate Revolutionizes Health Practices in D.R.C.
Doctor Anicet Fangwa's work on health centers and stillbirths in the Democratic Republic of Congo could save millions of lives by better managing health practices throughout Africa. The PhD graduate from HEC Paris describes the managerial tools he's been using to transform treatment in health centers in remote parts of the DRC.
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#MeToo and the American Boardroom
It’s been over five years since #MeToo began to draw global attention to the sexual abuse and harassment women have been subjected to in the workplace. But just what impact has this protest movement had on US companies and their boards of directors? HEC Paris Assistant Professor Crystal Shi examined the behavior of over 2,000 American firms to gauge the evolution in policy and attitude of investors and board members in their respective companies. Shi and two fellow academics at New York’s Stern School of Business identified 37 MeToo events in the year after the Harvey Weinstein scandal. They then looked for any abnormal market return based on the boardrooms’ gender structure and culture. Finally, the researchers studied the costs of the companies’ gender-inclusive or -exclusive cultures.
Read the summary on Knowledge@HEC.
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Pourquoi l’apprentissage du savoir-être à l’école peut transformer la vie
Et si, en enseignant l’empathie et la coopération à de jeunes garçons, l’école pouvait transformer des vies ? Dans une recherche cosignée par Yann Algan, professeur d'économie et doyen associé de l'ensemble des programmes pré-expérience à HEC Paris, les résultats sont sans appel. Ce spécialiste du bien-être au sein des organisations nous livre le bilan d’une recherche unique qu’il a menée pendant 33 ans auprès d’enfants à risque de décrochage venant de quartiers pauvres de Montréal.
Retrouvez le résumé de l'étude, en anglais sur Knowledge@HEC.
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Devenir un leader de l'ESG : le chemin parcouru par Schneider Electric
Gilles Vermot Desroches est ingénieur de formation. Mais c’est au cœur de la stratégie et de l’innovation de Schneider Electric qu’il a piloté les actions de développement durable de Schneider pendant les 25 dernières années. Il répond à nos questions sur sa compréhension des critères de notation de l’ESG et partage ses observations de l’évolution des tendances de la question de l’impact, de la responsabilité de l’Europe dans ses efforts stratégiques et des manières de mesurer l’ESG. Mais, tout d’abord, le Directeur de la Citoyenneté et des Relations institutionnelles à Schneider retrace les étapes clés de la stratégie ESG de la société depuis 1998.
Ce podcast coïncide avec la signature d’une Convention de Mécénat entre Schneider Electric, HEC Paris et la Fondation HEC. Ce partenariat a pour ambition d’accroître la compréhension et les avancées des entreprises face aux défis environnementaux et sociaux face à la nécessité d'une transition équitable vers une économie décarbonée et inclusive.
Retrouvez l'article résumé en anglais sur Knowledge@HEC.
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What Social Factors Get Measured in Corporate ESG Frameworks?
Why is the SOCIAL element of Environmental, Social and Governance performance (ESG) neglected or ignored? Three HEC academics have joined forces with an S&P Global researcher on ESG to better understand this negligence. They have published a landmark report on how ESG frameworks cover this issue – or don’t. “What Gets Measured” also suggests ways to ensure that what gets measured, in the authors’ own words, “matters for businesses, the people and the communities they impact”. For, ignoring social concerns like workers’ rights in the supply chain can have serious consequences, as France's gilet jaunes (Yellow Vests) movement illustrated.
Read more on Knowledge@HEC.
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Research and Policymaking: Conference Debates Governance in Crisis Period
Top personalities from the political and academic worlds, including Pascal Lamy, Peter Altmaier, John Denton and Merit Janow, were amongst the 17 speakers at a September 29 conference at HEC Paris on constitutionalism. Over three intense sessions, the policy-makers and professors of law explored reforms in governance of public goods.
The HEC Paris conference went beyond constitutionalism to explore the failures of transnational governance, policy responses and current free market dynamics in the past decade. It set out to propose reforms in multilevel governance of public goods at worldwide, European and national levels. In this way, the organizers, HEC professor of EU Law and Economics Armin Steinbach and Emeritus professor at EUI Florence, Ulrich Petersmann, hope to develop academically innovative research and concrete policy proposals for policymakers. This, they believe, will encourage policymakers to implement new approaches to address the growing number of these governance and constitutional failures the world is currently experiencing. The results of the three sessions at HEC are to be published in the form of a book in 2023.
Read more on Knowledge@HEC
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As COP27 Gears Up, an HEC Student and an Academic Confront Points of View
The COP27 summit begins on November 6 in Sharm al Sheikh, Egypt, exactly a year after COP26 in Glasgow. A year is a long time and challenges have piled up: a world divided by war in Europe, where the world sees an acceleration of climate changes and global warming has beaten all modern records. In this light, Knowledge@HEC discusses the 12-day summit’s agenda and objectives with two guests: Igor Shishlov, Academic Co-Director for HEC’s Climate & Business Certificate; and Shiraz Moret-Bailly, co-president of Esp’R, an HEC student association devoted to sustainability and social economy.
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Creating Social Value Through Hybridization
Bertrand Quélin is professor of Strategy and the holder of the Bouygues-HEC Paris Chair in ‘Smart City and the Common Good’. He has been spearheading research on ways public bodies and private companies partner up to create both social and economic value. We discuss how the partnerships rely on a form of hybridization relying on three mechanisms: contractual, institutional and the ability to regularly partner up with public authorities.
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Efficacy of Citizen Mobilization for Refugees – from Middle East to Ukraine
As Europe faces postwar records in forced migration from the east and south, ad hoc citizen groups have been sprouting up to ease the hardships of their new homelands. To illustrate this, HEC Assistant Professor David Crvelin publishes a detailed study on the rapid and effective response of German citizens to the unprecedented wave of migrants in 2015. A lesson of integration for all Europe?
Read more on Knowledge@HEC
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HEC Research Points to AI Solutions to Prevent Miscarriages of Justice
In the United Kingdom, more than 700 Post Office workers were wrongfully convicted of theft, fraud and false accounting between 2000 and 2014. That was the result of a fault in Horizon, a Fujitsu computer system used by the UK Post Office. How can AI solutions be developed to detect and prevent such intelligent anomalies? To answer these questions and more we have turned to HEC Professor of Accounting and Management Control, Aluna Wang. She is also chairholder at Hi!PARIS Center on Data Analytics and Artificial Intelligence.
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Ukraine/Russia: the Energy Factor
Finance professor and executive director of the HEC Energy and Finance Chair, Jean-Michel Gauthier, spoke to us on March 3, one week after Russia invaded Ukraine. Jean-Michel is a veteran of the energy business. As a partner at Deloitte, he moved to the energy consulting industry for 16 years, before joining HEC Paris’ finance department in 2006. The dramatic events developing in Ukraine lead us to discuss with Jean-Michel a key factor behind the conflict: the question of energy. Not just the pipelines that bring Europe 40% of its natural gas and much of its oil – but also the knock-on effects on all energy sources that prop up our global economy. He helps us understand what role energy is playing in this ongoing conflict and where these upheavals could lead the entire planet.
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Meta/Facebook and Data Privacy: a Clash of Cultures & Generations
HEC Paris Assistant Professor in Marketing, Klaus Miller, analyzes the February 3 Facebook/Meta stock market plunge. What exactly does it tell us about private data on internet and its links to the advertising world? We meet Klaus on February 8, the very day he and five co-researchers self-published “The Impact of the GDPR on the Online Advertising Market”. This book focuses on Europe’s GDPR and how it affects online publicity. We exchange in Klaus’ apartment in Versailles, near the HEC campus. This is a wide-ranging discussion on personal data and the advertising industry, including the researcher's insights on ad blockers on news websites and their impact on our reading habits.
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Activist Short Sellers and their Narratives: Bringing Down Business Giants With Aristotle
Activist short sellers are controversial hedge funders that some are calling the modern day Robin Hoods of the business world, others are denouncing as unethical profiteers. Most economists, however, recognize their short selling as a vital part of an efficient and liquid market. HEC academics Hervé Stolowy and Luc Paugam, with their coauthor Yves Gendron, from Université Laval in Quebec, spent three years researching the reports short sellers write on companies they suspect of nefarious activities. They link these narratives to the linguistic tools “ethos”, “pathos” and “logos”, first dreamt up by Aristotle in 350 B.C.E.. In the podcast, Hervé and Luc also share their unique exchanges with three of these sellers, people who rarely reveal their operations.
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Research Points to Gender Diversity as Motor for Innovation and Growth
Dr. Shaheena Janjuha-Jivraj has spent decades analyzing women for leadership roles. Shortly after joining HEC Qatar as Associate Professor in Gender Diversity and Entrepreneurial Leadership, she published her third book “Futureproof Your Career”. We caught up with the prolific academic at the 2021 Women’s Forum in Paris to discuss cognitive diversity, her research on Asian communities and leadership, teaching entrepreneurial leadership at HEC, and much more.
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Major HEC Report Spotlights Smart City Impact
Just days after the conclusion of the 2021 Smart City Expo World Congress (SCEWC) in Barcelona, HEC Paris Professor Bertrand Quélin and HEC Paris graduate Isaac Smadja publish a key study of six award-winning smart cities across the globe. The 238-page eBook is the result of a partnership between Bouygues & HEC in the context of the school’s Smart City & the Common Good Chair. We exchange with Professor Quélin about the advantages of, and challenges to, tomorrow’s cities.
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Inflation Rears its Ugly Head: Why? And What Could be the Impact?
The upswing in inflation figures on both sides of the Atlantic, called “reflation”, continues to worry governments and the general public. But what is behind these inflationary pressures? What are the consequences of this 13-year-high in the euro zone (4.1% in October); and 30-year record surge in prices in the United States? To find out what caused these increases and to analyze what could happen in the future, we’ve turn to two HEC academics whose research is linked to the inflation question. Associate Professor Eric Mengus specializes in monetary and macro-economics. His colleague, Associate Professor Gaetano Gaballo is a researcher in the same domains, and he’s also worked for seven years as a senior economist at the Banque de France. In mid-October, they reflected on a wide range of issues linked to reflation.
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Special Edition: HEC Grande Ecole Students Plunge into Environmental Issues in Chamonix
For the second time ever, HEC’s first year students began their school career with the off-campus “Purpose & Sustainability” seminar. 370 freshmen converged on the Alpine village of Chamonix for a physically and intellectually intense three-day seminar devoted to the major environmental and social challenges the world faces. This podcast reflects the intensity of the experience and the lessons drawn from it.
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Economic Perspectives for Germany after September’s Federal Vote
The September 26 federal elections in Germany have been earmarked as one of its most important in the past two decades. For a start, it signals the end of Angela Merkel’s tenure as Chancellor, after 16 years at the helm of Europe’s largest economy. To comment on this landmark vote, its uncertain outcome, and economic outlook, we turn to Armin Steinbach, HEC professor in law. Steinbach is ideally placed to comment: prior to his September arrival at our business school, he spent over a decade as a government official and adviser in the Ministries of Finance and of Economic Affairs and Germany’s Parliament.
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Olivier Sibony Makes Noise with Breakthrough Study on Human Judgment
HEC Professor of Strategy (Education Track) Olivier Sibony joins forces with Nobel-laureate Daniel Kahneman and legal scholar Cass Sunstein to publish Noise, a monumental study on a little-known – yet pervasive - flaw in human error. The trio thus reinvent a term for a variability of judgment pervading decision-making at all levels and in all fields. In an exclusive interview, Olivier shares insights into a groundbreaking work that has shot into bestseller lists worldwide. It comes a day after the publication of the book’s French edition. And weeks before the arrival of Nobel laureate Daniel Kahneman’s visit to HEC on October 7, to accept the title of “Honoris Causa Doctor”. The interview was recorded on May 6, 2021.
Film extracts: 12 Angry Men, directed by Sidney Lumet, starring Henry Fonda.
This podcast was recorded on September 30, 2021.
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"The World is Watching El Salvador’s Bitcoin Experiment"
On September 7, El Salvador became the world’s first nation to make the cryptocurrency bitcoin legal tender across the country. This bold initiative from the tiny Central American state is dissected by HEC Professor in Finance Bruno Biais, who has written several top research papers on cryptocurrency.
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« Créer des passerelles entre la recherche et la politique »
Jean-Noël Barrot, professeur associé à HEC Paris et député des Yvelines à l’Assemblée nationale, allie son engagement politique avec ses recherches dans le domaine de la finance. Il a remis un rapport au gouvernement le 29 juin dernier, où il développe des propositions pour aider la France à sortir de la crise sanitaire. Dans cet entretien, Jean-Noël Barrot nous explique comment il parvient à combiner utilement ses travaux de recherche et son rôle de parlementaire.
Ce podcast a été enregistré le 13 juillet 2021.
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Scrutinizing Truth Distortion Through a Marketing Lens
HEC Paris associate professor of marketing, Anne-Sophie Chaxel, describes her recent study on truth distortion in the COVID-19 era. Using marketing techniques like the Stepwise Evolution of Preferences Chaxel and fellow academic Sandra Laporte, used such tools to see how people respond to controversial statements linked to the virus – when they’re delivered by popular personalities. They enrolled 1,400 American workers and asked them to respond to allegations that COVID-19 is man-made and that hydroxychloroquine can eliminate the symptoms. They discovered that the more controversial these statements are, the more people seem to adhere to them…
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The Caster Semenya Case: Perceptions of Gender Identity, Sexual Orientation, Human Rights and Sports Politics
For the 32nd Olympic Games, one of South Africa’s modern icons, 800-meter champion Caster Semenya, will not be making the trip northwards. She has been barred from the Tokyo Olympics where she had hoped to defend a crown she won in 2012 and 2016. We discuss with Associate Professor Matteo Winkler the legal, sociological and ethical implications of this legal decision by the Court of Arbitration for Sport, or CAS. It targets women athletes like Semenya who are born with naturally high levels of testosterone, what’s called “hyper-androgyny”. Winkler and fellow academic, Doctor Giovanna Gilleri, published a 40-page study deconstructing the controversy and what it reflects on the law, sports politics, transgender sexuality… and the West’s sometimes uncomfortable position on femininity in the Global South.
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French Court Overrules Ban on Cannabidiol Sales
A year after the EU’s Court of Justice ruled that none of its member states can outlaw the sale of the non-psychotic compound cannabidiol (CBD), France’s highest appeals court overturned a decision banning its sale on French territory. Associate Professor Daniel Martinez analyses the June 26 decision in the light of his long research on cannabis-related questions in Colorado.
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