Haas NewsWire

Haas NewsWire, March 31, 2003

National Social Venture Finalists Reflect Issues of the Day
White-Collar Criminal to Speak on Business Ethics
Haas School's Entrepreneurship Program Ranked in Top Tier by Entrepreneur Magazine
Haas Faculty Inducted into the Derivatives Hall of Fame
Undergraduate Career Week Focuses on the Future
Clausen Center Announces Fellowships for 2003
Business Forecast Luncheon to Focus on California's High-Tech Economy
New Issue of California Management Review Now Available
Faculty News
Haas in the News
Happening at Haas

Haas NewsWire Archive
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The business ideas of the ten finalists for this year's National Social Venture Competition (NSVC) offer solutions to some of today's most pressing social and environmental issues. Four of the finalists proposed energy-related businesses and two offered economic development ideas for the Middle East.

The social and environmental impact of the business plans is measured in terms of their social return on investment (SROI), a concept developed in recent years to quantify the financial benefits society derives from a business's positive social or environmental impact.

The National Social Venture Competition is a partnership between the Haas School, Columbia Business School, and The Goldman Sachs Foundation. At the Haas School, it is hosted by the Lester Center for Entrepreneurship & Innovation.

The final competition will be held on Saturday, April 12, 2003, hosted by the Eugene M. Lang Center for Entrepreneurship at Columbia Business School in New York.

Columbia will host a kick-off dinner on Friday, April 11, for the finalist teams featuring an address by Jacqueline Novogratz, CEO of the Acumen Fund. The weekend will culminate in an awards dinner on Saturday at Tavern on the Green. Former chairman of President Bush's Council of Economic Advisors, R. Glenn Hubbard, the Russell L. Carson Professor of Finance and Economics at Columbia Business School, will provide the keynote address.

This year's finalists were selected in regional competitions at Columbia and Berkeley in March. They will compete for a total of $100,000 in prizes in three categories: businesses with high-growth potential, businesses with medium-growth potential (including nonprofit organizations), and businesses that best represent blend both the financial and the social returns on investment.

The 2003 NSVC finalists are:

High-growth Category:

Medium-growth Category:

Best Social Return on Investment Category:

In addition, all candidates in the high- and medium- growth categories are eligible to win the Best Blended Value Prize for the venture that best blends the financial and social returns on investment.

Finalists will present their business plans to a group of judges representing venture philanthropists, social venture investors, angel investors, venture capitalists, and social venture entrepreneurs whose expertise spans a breadth of social, environmental, and business subjects. Confirmed judges for the final competition are Laura Callahan (Rockefeller Foundation); Cathy Clark (Columbia Business School); Tony Lent (EA Capital); Willy Osborn (Commons Capital, LLC); and William Rosenzweig (Haas School of Business).

For more information, go to the web site at http://www.socialvc.net.

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Serving prison time shouldn't be necessary to learn business ethics, but for Walt Pavlo, a former MCI employee who has just been released from a South Carolina prison, serving time gave him the opportunity to reflect on the actions that led to his incarceration.

Pavlo will speak at the Haas School as part of the Dean's Lecture Series on Wednesday, April 16, at 4:30 p.m. in the Arthur Andersen Auditorium.

As a young executive at MCI in the telecommunications division, Pavlo handled the billing and collections in MCI's reseller division, an area of the company that was having trouble collecting fees from reseller telephone companies. He began manipulating financial records to hide bad debt in 1996 and ended up embezzling money from MCI. He pled guilty to wire fraud and money laundering in January 2001.

In June of 2002, Forbes Magazine published a detailed account of Pavlo's time at MCI in the article, "Aggressive Accounting: Ring of Thieves."

Pavlo was a guest speaker for the FBI at its National Convention on Corporate Fraud where he appeared before over 300 FBI agents and attorneys. Before joining MCI, he worked for Goodyear Tire in its aerospace division as a financial analyst and GEC Ltd. of England as a contract manager. He holds both an engineering degree and an MBA.

Seating for the event will be first-come, first-served. For more information contact Susie Hanna at hanna@haas.berkeley.edu.

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Entrepreneur magazine ranked the Lester Center for Entrepreneurship & Innovation at the Haas School in the top tier of the nation's top 50 programs in its latest entrepreneurship survey of the Top 100 US Entrepreneurial Colleges, published in its April 2003 issue.

UC Berkeley, Columbia University, and the University of Indiana at Bloomington were the only universities with programs rated in the top 10 by both faculty and alumni, according to Entrepreneur. Alumni from different schools interviewed for the survey ranked the school's Lester Center #4; faculty ranked it #6.

Entrepreneur's top tier entrepreneurship programs are:

University of Arizona (Eller)
Babson College
Baylor University
University of California, Berkeley (Haas)
Harvard University
Indiana University, Bloomington
Louisiana State University, Baton Rouge
University of Maryland, College Park
Massachusetts Institute of Technology (Sloan)
University of Pennsylvania (Wharton)
Stanford University
Wake Forest University
The survey, which is the first in a series of annual surveys, evaluated more than 700 entrepreneurship programs and ranked the 50 top national and 50 top regional university entrepreneurship programs into four tiers each. The survey is based on questionnaires completed by the schools and on surveys completed by entrepreneurship faculty and alumni around the country.

The survey results and the accompanying article are available at http://www.entrepreneur.com/topcolleges.

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Three current and former Haas faculty members have been inducted into Risk magazine's "Derivatives Hall of Fame" for their profound contributions to the field of risk management.

Mark Rubinstein, the Paul Stephens Professor of Applied Investment Analysis; Mark Garman, professor emeritus in the Haas Finance Group; and former Haas professor Steve Kohlhagen were among the fifty scholars and practitioners chosen by Risk's editors and reporters based on the criteria of "innovation and excellence in over-the-counter derivatives and risk management."

Risk magazine celebrated the new inductees in front of 200 derivatives and risk management luminaries at its 15th anniversary celebration on March 5 in New York.

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UC Berkeley's sixth annual Career Week for undergraduate students and alumni titled, "Great Expectations" will feature a collection of over 45 programs and presentations covering various career-related topics from April 7 to 11.

Sponsored by the UC Berkeley Career Center and the California Alumni Association (CAA), this week-long event will present lectures, panel discussions, and career information encompassing a wide range of disciplines.

Members of the Haas School community are contributing to the week's events.

Detailed information, including names, job titles, & organization affiliation of the presenters, and a description of each program is available at http://career.berkeley.edu/CareerWeek/CareerWeek.stm. A booklet containing this information will also be available in Sproul Plaza at the Career Week information tent Monday, April 7, through Thursday, April 10.

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The Clausen Center for International Business and Policy welcomes applications from eligible Haas School students for this year's Clausen Fellowships.

The fellowships are awarded annually to business undergraduate and Berkeley MBA students who have shown an outstanding commitment to the field of international business. To be eligible, undergraduates must apply during their junior year and Berkeley MBA students during their first year. Applications are due April 15, 2003. For complete details see http://www.haas.berkeley.edu/HaasGlobal/clausenfellows.htm.

The fellowships provide $1,000 to support a student interested in international issues. They are a gift of Tom Clausen, the former chairman and CEO of Bank of America and former president of the World Bank. Tom Clausen also supports the Clausen Center for International Business and Policy, named in his honor, which aims to promote international opportunities at Haas by supporting a variety of activities and programs in global management.

The Asia Business Conference, the upcoming Clausen Center Debate on April 23, 2003, and the International Business Development Program are some of the activities supported by the Clausen Center.

For further details on the Clausen Center see http://www.haas.berkeley.edu/HaasGlobal/.

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Robert Grady, partner and managing director of the Carlyle Group, will speak about the future of California's high-tech economy at the 2003 Business Forecast Luncheon, titled "California's Technology Economy: Dead or Just Resting? Where do we grow from here?"

Sponsored by the Haas Alumni Network, the Business Forecast Luncheon takes place on Wednesday, April 9, from 11:30 a.m. to 1:30 p.m. at the World Trade Club in San Francisco. The event is open to the entire Haas community.

Carlyle is one of the world's largest private equity firms with $14 billion under management and 21 offices in 15 countries around the globe. Grady is the managing partner of the firm's flagship US venture funds, Carlyle Venture Partners I and II. These funds make investments in private companies providing hardware and software technology infrastructure to the enterprise market. Carlyle Venture Partners II was the largest technology venture capital fund raised in 2002, with $602 million in equity commitments.

Before joining Carlyle, Grady was managing director at Robertson Stephens, the San Francisco-based technology investment bank. During his time at Robertson Stephens, he was involved as the investment banker on over 150 public market equity offering and merger and acquisition transactions.

Since 1993, Grady has also served on the faculty of the Stanford Graduate School of Business, where he teaches a course on the challenges of investing and managing in highly regulated environments.

He has had extensive experience in Washington DC, most recently serving the White House as deputy assistant to President George W. Bush and as executive associate director of the Office of Management and Budget (OMB).

Please register by April 4 at http://www.acteva.com/booking.cfm?bevaid=45814. For more information, contact the Alumni Relations office at 510-642-7790 or alumni@haas.berkeley.edu.

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The just-published winter 2003 issue of the California Management Review (CMR) is now available. The current issue is a special CMR forum titled, "Learning from Hospitals."

CMR is geared towards both practitioners and academics. It publishes articles that are research-based and address issues of current concern to managers.

CMR is available to current Haas students on a complimentary basis. Copies for Haas students are available in the lounges and program offices.

Alumni interested in receiving a complimentary issue of CMR should send an e-mail to cmr@haas.berkeley.edu.

Alumni can receive a special CMR alumni subscription at the rate of only $40. The international alumni rate is only $60. To subscribe, send e-mail to cmr@haas.berkeley.edu with current address information.

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Michael Katz Named Associate Dean for Academic Affairs

Dean Tom Campbell announced that Michael Katz, the Edward J. and Mollie Arnold Professor of Business Administration, will take the helm as associate dean for academic affairs for the fall term of 2003. Professor Philip Tetlock has agreed to assist Katz with his duties.

Early this semester, Dean Campbell announced that the position of associate dean for academic affairs would be rotating on a regular basis with an additional faculty member assisting with the duties of the position.

Katz will succeed Associate Dean Tulin Erdem, who is serving in this position in this semester, assisted by Katz.

Teece Named to National Science Foundation Panel

The National Academy of Sciences has appointed David Teece, Mitsubishi Bank Professor of International Business and Finance and director of the Institute of Management, Innovation & Organization, to join an expert committee commissioned by the National Science Foundation. The committee will conduct a comprehensive assessment of telecommunications research and development and draft a report that includes guidelines and recommendations for the US government to cope with policy issues in this area.

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Haas in the News

Peter Sealey, adjunct professor in the Marketing Group, commented on the Bush administration's use of marketing strategies in marketing the war to the American public in the San Francisco Chronicle on March 30. Read the full article, titled "Marketing experts say war is a tough sell," at http://www.sfgate.com/cgi-bin/article.cgi? file=/chronicle/archive/2003/03/30/MN251264.DTL&type=printable.

Severin Borenstein, the E.T. Grether Professor in Public Policy and Business Administration, remarked on the FERC's announcement that there was widespread market manipulation during California's power crisis in the San Francisco Chronicle on March 28 in the article, "California officials say FERC findings justify continued fight." Read the full article at http://www.sfgate.com/cgi-bin/article.cgi? file=/news/archive/2003/03/28/financial0328EST0013.DTL&type=printable.

Pablo Spiller, the Joe Shoong Professor of International Business and Public Policy, commented on the agreement of United Airlines pilots to accept pay cuts to help the airline emerge from bankruptcy in the San Francisco Chronicle on March 28. Read the full article, titled "United's pilots agree to pay cuts," at http://www.sfgate.com/cgi-bin/article.cgi? file=/chronicle/archive/2003/03/28/MN255164.DTL&type=printable.

Professor Paul Gertler's work in privatization of water and child health in Argentina was extensively covered in the Economist on March 22 in the article, "Raise a glass - How privatizing water helps child health."

Severin Borenstein remarked on the airline industry's need to let the weakest companies fail in the San Jose Mercury News on March 27. Read the full article, titled "Airlines' mayday call may go unanswered," at http://www.bayarea.com/mld/mercurynews/business/5493290.htm.

Severin Borenstein commented on the FERC's ruling that energy firms should refund at least $3.3 billion to California in the San Francisco Chronicle on March 27. Read the full article, titled "Consumers Left Out of Energy Refunds," at http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2003/03/27/BU66410.DTL.

Severin Borenstein commented on struggling airlines' proposal for government aid in the Associated Press on March 26. The article appeared in the following news sources:

Severin Borenstein remarked on oil price similarities between both Gulf Wars in KRON4 News on March 26. Read the transcript of "Iraqi War Affecting US Gas Prices" at http://www.kron4.com/Global/story.asp?S=1201313.

David Aaker, the E.T. Grether Professor Emeritus of Marketing and Public Policy and co-author of Brand Leadership, was mentioned in the PR Newswire and Yahoo!News on March 26 in the article, "Jeff Parkhurst Joins Vivaldi Brand Leadership." Read the full article at http://biz.yahoo.com/prnews/030326/nyw043_1.html.

The Haas School of Business was mentioned in the Financial Times on March 24 in the article, "Costly systems offer big payoffs." The article mentioned the school's virtual classroom, shared with MBA students at the University of Michigan Business School and the Darden School at University of Virginia.

Assistant professor Terrance Odean's work in investor trading was included in the Rocky Mountain News, CO, on March 24 in the article, "Half of investors now are women." Read the full article at http://www.insidedenver.com/drmn/stocks/article/0,1299,DRMN_22_1834286,00.html.

Cynthia Kroll, regional economist for the Fisher Center for Real Estate and Urban Economics, commented on the Bay Area's condominium market in the Oakland Tribune on March 23. Read the full article, titled "Condo sales go flat: Demand, sales slumping for Bay Area condominiums," at http://www.oaklandtribune.com/Stories/0,1413,82~10834~1264657,00.html?search=filter#.

Hal Varian, dean of the School of Information Management and Systems, remarked on the effects of war on the stock market in the San Francisco Chronicle on March 22. Read the full article, titled "Fear and the market," at http://www.sfgate.com/cgi-bin/article.cgi? file=/chronicle/archive/2003/03/22/BU244065.DTL&type=printable.

Cynthia Kroll commented on the surprising strength of the housing market in the Contra Costa Times on March 22 in the article, "February housing prices slip." Read the full article at http://www.bayarea.com/mld/cctimes/business/5455813.htm.

Pablo Spiller was a guest on the Channel 14 evening news on March 22 discussing the economic impact of the war.

Severin Borenstein commented on El Paso Corp's $1.7 billion refund to California for manipulation of the energy market in 2001 in The Sacramento Bee on March 21. Read the full article, titled "State will get huge energy refund," at http://www.sacbee.com/content/politics/story/6314160p-7267562c.html.

Associate Professor Xiao-Jun Zhang commented on the effects of war on the stock market in the Contra Costa Times on March 21 in the article, "Investors look forward to short war, but caution urged." Read the full article at http://www.bayarea.com/mld/cctimes/5446633.htm.

Severin Borenstein remarked on gasoline prices and the oil supply in the following newspapers.

Cynthia Kroll was quoted in the Contra Costa Times on March 19 in an article regarding the steady downward spiral of the Bay Area high-tech industry. Read the full article, titled "Economic spiral not like 1991's," at http://www.bayarea.com/mld/cctimes/business/5427530.htm.

Ben Hermalin, the Willis H. Booth Professor of Banking and Finance, commented on the appointment of Jay Garner as head of the Pentagon's Office of Reconstruction and Humanitarian Assistance in Reason Online on March 19. Read the full article, titled "Iraq's New Rulers," at http://www.reason.com/hod/my031903.shtml.

Dean Tom Campbell wrote an op-ed published in the San Jose Mercury News on March 18, titled "The 12-year gulf war." Campbell compared the Gulf War of the 90s with today's war on Iraq. Read the full article at http://www.bayarea.com/mld/mercurynews/5418975.htm.

The Haas School of Business was mentioned in the Daily Californian on March 18 in the article, "Union Ad Urges University Boycott of Hotel."

Dean Tom Campbell was interviewed by Monica Xu of the World Journal (China) on March 18 to discuss the impact of the war on the world economy.

Dean Tom Campbell compared the success of Texas' deregulated energy market with California's in The Los Angeles Times on March 17 in the article, "Power Deregulation: A Tale of Two States."

Terrance Odean's research into investor behavior was used in the Wall Street Journal on March 16 in the article, "Getting Going: Find Help That Won't Hurt."

Kellie McElhaney, executive director of the Center for Socially Responsibility, commented on the difficulty of implementing corporate responsibility measures in the Contra Costa Times on March 15. Read the full article, titled "Angelides takes activist stance," at http://www.bayarea.com/mld/cctimes/5399671.htm.

Severin Borenstein appeared on the following television and radio stations commenting on gasoline prices, oil, and the war: KTVU (March 18), KGO (March 19), KNTV (March 19), KRON (March 20), KPIX (March 21), KCBS (March 21), KTVU (March 10) and NPR's Marketplace (March 13).

Jennifer Chatman, the Paul J. Cortese Distinguished Professor of Management, was quoted in the March 2003 issue of Business 2.0 on her research on the effects of ingratiation and flattery in the workplace.

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