Corporate Strategy Today: Issue 11


Money Matters: Financial Risk, Stock Valuation Models, and the Emergence of Rating Organizations


Sample article: CEO Table by Alan Banks, CEO of LoSoNoCo bio-fuels company and former CEO of Fitch CoreRatings and former UBS banker.

Issue XI release date: October 5, 2005

Featured Articles:

  1. By George Dallas, MD and Head of Governance - Standard and Poors

    Better Governance: To Avoid Risk or to Create Value?

    • Dallas shows that corporate governance should not be looked at as an external discipline that imposes costs, but rather as an internal discipline that adds value: It is about creating a corporate culture that embodies and implements core values and principles that enhance the quality and sustainability of a firms future performance. He links governance in to corporate social responsibility by showing that having strong relationships with a broad base of non-financial stakeholders ultimately determines a companies ability to put profitable product into the marketplace.

  2. By Dr. Helena Barton, Business Development Manager (USA) - DNV/CoreRatings

    Leveraging Intangible Assets: How a Rating Can Help Measure and Communicate Performance

    • Dr. Barton points out that intangibles such as reputation, brand value, goodwill, intellectual capital, innovative capacity, culture, management, staff and strategy account for 70% to 95% of market value. She gives practical advice on how companies can analyse and manage that intangible value.

  3. By Meg Voorhes, Director of Social Issues Services - (IRRC) Investor Responsibilty Research Center

    The Rising Tide of Sharholder Activism

    • Meg Voorhes looks at how some of these issues are beginning to generate increased shareholder activism both, as evidenced through the number and range of shareholder resolutions at companys' AGMs.

  4. By Paul Hilton, Social Marketing Director - Calvert

    Moving From Values To Value

    • Paul Hilton looks at how investors employ 'value based' analysis to identify companies that have lower risks together with a positive leverage to profit opportunities. Paul points out the difficulty in finding consistent, quality information upon which to make these judgements and argues for a standardised approach if not standardised reporting.

  5. By Gil Friend, President & CEO - Natural Logic, Inc.

    Risk, Fiduciary Responsibility and 'Regulatory Insulation'

    • Executives and boards are fiduciaries, holding economic value in trust (from Latin, fidere, to trust) for shareholders. But because the scope of that trust is narrowly drawn - focused only on what can be monetized, and usually focused only on the near term - too many companies, their directors, and their executives run their companies with a rear view mirror, instead of a radar system, and miss critical market signals. As a result, Gil explains, many may be failing their duty as fiduciaries.

      Despite the considerable progress some firms have made in integrating sustainability into their business, even the best of corporate sustainability initiatives may be inadequate to both the challenge or the opportunity we face.

      Gil shows us how companies that look at the world - and competitive markets - through an ecological lens can identify key issues early, position their products ahead of the trend, and avoid the cognitive errors and flawed management methodologies that hamper companies that don't.

  6. By Bruce Piasecki, President and Founder & Peter Asmus, Senior Associate - AHC Group, Inc.

    Moving From Senile to Social Capitalism

    • Multinational corporations today shoulder an increasing share of social functions once reserved for governments or religion. A key shift now occuring within corporations is a more socially responsible way of defining our social needs, rather then stimulating preceived social needs for products - fast food, for example - that actually exploit short-term impulses at the expense of long-term sustainability.

      This is an excerpt from Piasecki's sixth book, World Inc examining a new stream within the turbulent waters of advanced capitalism--social response product development (SRPD).

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