Week Seven DPs with No Names Fall 2017.docx

Week Seven DPs with No Names Fall 2017.docx - Week Seven...

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Week Seven DPs with Names – MBA 681 DP #1: Sustainable finance Article 29 speaks about the financing aspect of sustainability, but I wanted to put my own spin on it. Much has been made about the corporate tax rate in the United States, and the amount of work that needs to be taken in order to fix it. With that said, would you, and/or the business community be open to the concept of having a lower tax rate for profit driven businesses if they focused more on sustainable practices? The article states that many businesses use tax credits as a one-off deductible, but I was thinking of different ways to give tax breaks. Also, why do business people ignore the large amount of data on the benefits of sustainability? JC Response: Regarding your question about why business people have ignored the data about sustainability benefits, you may have heard about Dr. Richard Thaler, who just won the Nobel Prize this Monday because of his research on what is called “Behavorial Finance”, where people make decisions that do not make any sense economically. He also co-wrote a great book called “Nudge” a few years ago explaining the many cases where people over-react or under-react to information rather than doing the logical financial response to good news, or bad news. Tax breaks are essentially subsidies- you can help some industries and hurt others, or vice versa, depending upon politics. Look at the proposed subsidies for the coal and nuclear industries- millions of consumers would be required to pay much more for energy and also suffer higher health care costs (and deaths), just to save a few 1,000 jobs in the coal /nuclear industries. What is wrong with that picture? DP #2: Millennials and climate change What, if anything, can be done to start to mitigate the economic risks of climate change for millennials? Furthermore, why is it that we have this information, but continue to do very little to rectify the problem? If this information is factually correct, which I think is the case, then why aren’t people trying to address this gross negligence of our leaders? JC Response: See the Thaler story in DP#1- people and their leaders choose to do stupid things for political and ideological reasons (both Republicans and Democrats), such as not have a single payer health care system such as is used by the entire rest of the developed economies, or pass laws/regulations that discriminate against people just because they are a different religion, race or gender. Again, old white guys in the Congress will leave a very big financial and health mess for Millennials, if the Millennials don’t wake up and take some action soon. DP # 3: Article 3: Turning a Profit While Doing Good Paper The article talks about a negative relationship between financial and nonfinancial performance like when employees have higher salaries or when cleaner technologies are adopted. However, Wouldn’t this be turned into a positive relationship in the long term due to its positive impact and reputation?
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  • Fall '18
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