Haas NewsWire

Haas NewsWire, September 9, 2002

The Haas School and UC Berkeley Pay Tribute to September 11th Victims
Crisis in Corporate Ethics Becomes a Top Priority for the Haas School
National Social Venture Symposium to Explore Issues and Metrics in Social Entrepreneurship
First Year MBA Students Begin Studies in Redesigned, More Flexible Core Curriculum
Haas Leads Western Business Schools in Wall Street Journal Ranking
Real Estate Expert Joins Haas Faculty: Tom Davidoff
New Staff: Summer Hiring Bolsters Haas Staff by Six
Haas in the News
Happening at Haas

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The Haas School and UC Berkeley Pay Tribute to September 11th Victims

Dean Tom Campbell has invited the Haas community to come together to share a sense of family on September 11th. In a memorandum to the entire school, he called on members of the school to join in for a moment of silent meditation, and to share words of compassion for all the innocent who have died through the violence of others. The memorial will begin at 1:00 in the Haas courtyard. There are no set speeches, rather all are invited to speak what is in their hearts, or simply to bear witness.

UC Berkeley will also be remembering the victims of 9/11. On Wednesday morning, the Campanile bells will toll at 5:45, 6:03, 6:38, and 7:10--the times that the four planes crashed. One minute of silence will begin immediately after the bells toll 12 times to mark the noon hour. After the silence, bells will resume briefly.

At 12:10 p.m., the music department will host a special program of reflective music from various cultures and centuries as part of its noon concert series in Hertz Hall. Simultaneously on the Sproul Plaza steps, student leaders will host a program of music, poetry and remarks. In the evening, from 6 p.m. to 8 p.m., the general public is encouraged to share their thoughts at an open microphone on the Sproul Plaza steps. A candlelight vigil will conclude the day at 9 p.m. For details on these and other remembrances planned, go to http://www.berkeley.edu/news/sept11.

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Crisis in Corporate Ethics Becomes a Top Priority for the Haas School

Because of the widening ethics scandals that have rocked corporate America over the past year, the Haas School of Business is launching a major expansion of its already significant activities in the area of corporate social responsibility and business ethics, according to Dean Tom Campbell.

Campbell said the effort would be a top priority for the nation's oldest public business school.

"The country and the world are demanding to know if recent lapses in business ethics are symptomatic of a system-wide failure," said Campbell. "Our great universities and business schools must play a major role in answering this question and leading the effort to discover ways to correct the problems."

The newly enhanced effort, called the Socially Responsible Business Leadership Initiative (SRBLI), is being supported by two gifts of $500,000 each from actor/philanthropist Paul Newman and Haas School alumnus Michael Homer, BS 81.

The new director of SRBLI is Kellie McElhaney, who was hired from the University of Michigan Business School where she was managing director of the Corporate Environmental Management Program. McElhaney also serves as the John C. Whitehead Fellow in Corporate Responsibility.

SRBLI will coordinate the Haas School's teaching, research, and public service activities in the areas of corporate social responsibility, ethics, social entrepreneurship, philanthropy, and environmental management.

"The Haas School's long tradition of exploring the impact of business on society provides tremendous credibility and momentum to this new initiative," Campbell said.

Among the planned and ongoing activities for SRBLI are:

A planned series of visits by Haas business school students to correctional facilities to allow them to listen to how white-collar criminals fell short and to impress upon the students the consequences of doing so;
A new, required MBA course, "Global Business Citizenship;"
A future executive education course, "Natural Capitalism," developed in collaboration with the Rocky Mountain Institute;
An expanded lecture series in ethics that will feature speakers such as Enron whistle-blower Sherron Watkins;
Innovative elective courses, including a new student-initiated MBA course in socially responsible leadership that was introduced last week by Levi Strauss & Co. Chairman Robert Haas and Dean Campbell;
New electives in corporate social responsibility, including one taught by McElhaney during which students will work with companies on projects in corporate social responsibility (CSR);
The development of a SRBLI advisory board, made up of practitioners and CSR leaders in the business world;
The National Social Venture Competition, now in its fourth year, which was started by Haas School MBA students and now encompasses a large-scale partnership with Columbia Business School and the Goldman-Sachs Foundation.
The Haas School's commitment to exploring the relationship of business and society began at the founding the school in 1898, with a course examining the ethical issues of commerce. Beginning in the late 1950s, Professor and Haas School Dean Emeritus Earl F. Cheit laid a scholarly foundation for the study of the impact of business on society through his research and teaching, and by organizing the first national symposium on this subject, which was held at UC Berkeley.
Paul Newman's gift has created the Whitehead Distinguished Fellowship Fund in honor of John Whitehead, formerly the co-chairman of Goldman, Sachs & Co. and the US deputy secretary of state. Whitehead and Newman are known as pioneers in the advancement of corporate social responsibility issues. Newman inaugurated the Haas School's Forum in Corporate Philanthropy in September 2000.

Newman is internationally renowned for his leading roles in classic Hollywood films, and more recently for giving away more than $100 million in profits from his famous line of widely distributed food products. Newman launched his own business -- Newman's Own, Inc. -- in 1982. From the beginning, he decided to give away all after-tax profits from the sale of the products to educational and charitable organizations, located both in the US and in countries in which the products are sold.

Michael Homer, who also donated $500,000 to the effort, received his undergraduate business degree at UC Berkeley in 1981, and is the chairman and CEO of Kontiki (formerly known as Zodiac Networks), a software management company with offices in San Francisco and Sunnyvale, California. He also invests in and advises young companies in Silicon Valley, including Loudcloud, Tellme Networks, Palm, and TiVo and heads his family's philanthropic foundation.

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National Social Venture Symposium to Explore Issues and Metrics in Social Entrepreneurship

Leaders in academia, philanthropy, and social entrepreneurship will meet at the National Social Venture Symposium to discuss the issues facing enterprises that strive to blend both financial and social returns as integral parts of their missions. The symposium is the opening event for the fourth annual National Social Venture Competition, organized by the Haas School, Columbia Business School, and The Goldman Sachs Foundation.

The one-day symposium will take place on Friday, September 13, at the Haas School, for invited guests. Participants include social investors, entrepreneurs from the private and non-profit sectors, and faculty and students from leading universities where the study of social enterprise and entrepreneurship is taking root. It will feature a public dialogue with leaders in the social entrepreneurship arena to explore the practical paradoxes involved in growing, managing, and investing in double bottom line ventures with a particular focus on the emerging realm of social impact measurement and assessment.

Jed Emerson, senior fellow at the Hewlett Foundation and a lecturer at the Stanford Graduate School of Business, will give the keynote address. Emerson has been the leading force in defining and developing metrics to measure social return on investment across industries.

The National Social Venture Competition is a national business plan competition for teams of MBA students and entrepreneurs seeking to launch enterprises that create financial value by having a positive impact on society.

The competition began three years ago as a student-organized social venture competition at the Haas school. It expanded its national scope in 2001 with new partners, the Columbia Business School, and The Goldman Sachs Foundation, which has provided $1.5 million in funding for the competition.

The 2002/03 competition will be well under way in the spring, culminating in the final judging round on April 11-12, 2003, at Columbia Business School. For more information, visit www.socialvc.net.

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First Year MBA Students Begin Studies in Redesigned, More Flexible Core Curriculum

First year MBA students at the Haas School have spent their first weeks of classes experiencing a completely redesigned and up-to-date core curriculum that offers greater flexibility and freedom to customize their studies.

The new MBA core curriculum will now make up about 40% of a typical student's course of study, while the old required courses used to take up 57% of the program.

The newly condensed core courses, which are required of all 1st year Berkeley MBA students, teach management fundamentals--from accounting to a course called "Global Business Citizenship," which includes business ethics, environmental management, and corporate social responsibility. Because of the streamlining of the required courses, first year MBA students may also now select at least two elective courses from among dozens of choices in the spring semester of their first year.

The redesigned core curriculum, which was planned over the past 18 months, is the first total overhaul of the required portion of the MBA program in nearly a decade. The new core was based on extensive study and in depth discussions by Haas School faculty, staff, and MBA students, and considered the best practices of ten other top business schools as benchmarks for comparison.

"Not only do these changes represent a major improvement to the Haas School's MBA curriculum, they were successfully achieved because of the extensive participation of students and faculty at every step of the way," said Andy Shogan, associate dean for instruction at the Haas School. "The redesign process also incorporated the best thinking of other top business schools and insights from business on the kinds of the skills and knowledge that MBA students need to have."

The new curriculum is anchored by 11 required core courses that provide the analytical tools and essential knowledge to lead effectively. Students will now take all of these core courses in the first year, including finance, financial accounting, operations, microeconomics, macroeconomics in the global economy, strategy, organizational behavior, data and decisions, leadership speech, marketing, and global business citizenship.

The two semesters of the first year are divided into mini-semesters, with all but two of the core courses meeting for four hours per week over seven weeks. Students take only a limited number of core courses at a time, so they can intensively study their subjects.

The second semester of the first year includes four required courses, including the mandatory course in global business citizenship. In addition, students now will take at least two elective courses in the second semester of their first year. Elective courses now comprise 60% of the new Berkeley MBA curriculum, meaning that students begin to customize their own course of study very early in the program.

Two days of the fall semester will be devoted to an intensive career-planning program, consisting of a dynamic set of activities designed to prepare Berkeley MBA students for the job search. The required courses are now structured to teach the most essential management subjects in the fall semester, enabling students to do their best in interviews for their summer internships.

Faculty members who are also among the best teachers at the Haas School will teach the new required courses. Core faculty members meet weekly to discuss issues that arise in each course and to coordinate their syllabi.

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Haas Leads Western Business Schools in Wall Street Journal Ranking

The Haas School of Business was rated as the best MBA program in the western US in the Wall Street Journal's latest business school ranking, which was released on September 9 and based on a survey of corporate recruiters.

The Haas School ranked 15th out of the top 50 schools--up from 21st in the paper's 2001 ranking. The school outscored all other business schools located from the west coast through the Rocky Mountain states, including Thunderbird (34); USC/Marshall (35); UCLA/Anderson (36); Brigham Young (38); Stanford (39), UC Davis (47); and UC Irvine (49).

The scores were based on how recruiters rated each business school on 26 attributes, as well as the number of respondents who said they recruited at the school. A total of 2,221 recruiters participated in the survey.

The Haas School placed 9th among the top ten schools in terms of having the highest average MBA starting salaries. In academic excellence rankings, Haas rated 4th in e-commerce. It was also rated 5th among all schools in technology by recruiters from the tech industry.

Haas also placed 6th among small business schools (enrolling fewer than 500 students) and 7th among public schools. Recruiters ranked Haas 6th--tied with UCLA--for being among the best schools for hiring minority graduates.

The Wall Street Journal rankings and related stories can be viewed online at http://www.careerjournal.com/specialreports/bschool03/index.html and also at http://www.harrisinteractive.com/bschools/.

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Real Estate Expert Joins Haas Faculty: Tom Davidoff

Six new faculty members joined the Haas School ranks for the 2002-03 academic year. Each of these new faculty members will be profiled in detail in the Haas NewsWire. This is the second profile of the series, focusing on Thomas Davidoff, assistant professor of real estate.

Thomas Davidoff recently moved from Cambridge, Massachussetts, to Berkeley to join the Haas School's real estate group. The newly minted assistant professor researches the timely issue of how individual investors manage risk in their real estate and financial investments.

"Recently the popular press has been full of examples of investors putting all of their eggs in one basket," says Davidoff, citing the example of Enron employees whose future incomes were entirely dependent on the firm's performance. "For most households, however, the amount of wealth held in stocks is very small compared to that held in the form of housing."

He found that individuals whose incomes tend to move more closely with local housing prices should find housing to be a less attractive investment than people whose incomes tend not to remain stable. "If income moves with housing prices," explains Davidoff, "then housing is negative insurance."

For example, a New York investment banker typically is rich in the same times when New York housing prices are high (booms), and a little less rich when housing prices are lower (busts). So, buying housing creates an asset that has relatively big pay-offs (capital gains) when wealth is the least useful and relatively small payoffs when wealth is the most needed.

Using data on workers in a wide range of industries in different metropolitan areas, Davidoff found that households are buying roughly the equivalent of one more, or one less, bedroom depending on whether their income correlates more or less strongly with local housing prices than the average household. "Evidently," Davidoff concludes, "some households do recognize that it is not a good idea to put all of their eggs in one basket."

Looking into alternative investments, Davidoff has found that "annuities are a good way of making sure you will have enough to live on, even if you live to a very old age." Annuities are assets that pay out more because they convert back to the issuer if the investor dies. Davidoff hopes that his work on annuities will lead to the development of new types of annuity products. His research also suggests that new ways of marketing annuities could broaden their appeal.

Davidoff spent his undergraduate years at Harvard University, and went on to get his Masters in Public Affairs at Princeton University in Urban and Regional Planning. He recently completed his Ph.D. in Economics and Urban Studies and Planning at the Massachusetts Institute of Technology. He worked for three years at Forest City Ratner Companies, a real estate development company, as a project manager in his hometown of Brooklyn, New York.

This fall, Davidoff is teaching two MBA microeconomics courses and will organize the Ph.D. real estate seminar. He says teaching the microeconomics courses will be fascinating because, "I think it will be likely that the MBA students, having real world experience, will come to me with ideas, some which will be half-baked, and some will be really interesting."

Outside of work, he plans to start exploring California's abundant camping. "My wife and I love to hang out outdoors," he says, "so we'll do a lot of running and hiking." In addition to playing some internet speed chess from time to time, Tom Davidoff has all of the tools to become a full-fledged Californian.

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New Staff: Summer Hiring Bolsters Haas Staff by Six

The Haas School hired six new staff members this summer to bolster critical client and administration services. "I know that each and every one of them will make valuable contributions to the Haas community," said Haas' Director of Administration Meriel Ennik. "Please make sure to welcome them."

Carolyn Horton Enters Job-Share Arrangement in Academic Affairs

Carolyn Horton joined the Academic Affairs department as an administrative analyst in a job share arrangement with Laura Pliska on June 11, 2002. Horton's duties include scheduling the curriculum for all degree programs, evaluating teaching performance, and conducting annual student satisfaction studies. After a year off raising her daughter, Charlotte, Horton decided to take the job at the Haas School because of "the academic environment, the caliber of colleagues, and the potential career growth." Prior to having her child, she was a market research manager at Levi Strauss & Co.

Horton's e-mail is chorton@haas.berkeley.edu and her phone number is 642-0004.

Canadian Nafysa Lalani Joins Development Team

Nafysa Lalani joined the Haas School on June 24 as the associate director of the Haas Annual Fund under Mecca Nelson. The position, which was vacant for a year and a half, was previously filled by Martha Kariv. Lalani's primary duties are to oversee the undergraduate alumni reunion campaign, and the undergraduate "Feed the Bear" campaign. A native of Vancouver, she also oversees all of the direct mail and telephone solicitations. Lalani worked in the development office at the University of British Columbia, which has helped her in her current position. She says that the best part of her new job is working with wonderful people: "I work with a team of individuals who are results oriented, and are also a lot of fun to be around."

Nafysa Lalani's e-mail is lalani@haas.berkeley.edu and her phone number is 642-1509.

Jesus Verduzco Enjoys Working With Young Entrepreneurs

Jesus Verduzco, hired on July 22, joins the Young Entrepreneurs at Haas (YEAH) program as its program manager. Taking over for Ajuah Helton, Verduzco is responsible for managing the undergraduate student mentors who teach the Business Economic Technology Achievement (BETA) program, developing hands-on entrepreneurial projects to demonstrate a link between business and academics at local middle and high schools. Verduzco also manages the Young Entrepreneurs Program (YEP), which introduces high school students to the world of business, finance, and entrepreneurship through a hands-on curriculum. Recently completing his Master's degree in City and Regional Planning at UC Berkeley, Verduzco says, "Being involved with YEAH gives me the opportunity to watch future business leaders and underrepresented youth hone their business skills."

His e-mail is verduzco@haas.berkeley.edu and his phone number is 643-8906.

Haas Alumna Lisa Feldman Joins Career Services

Lisa Feldman, MBA 95, hired on August 12, joined Career Services as the account manager for biotech & healthcare, consulting, consumer products, energy, and non-profits. Feldman is responsible for on-campus recruiting, managing the recruiting activities of companies in these industries and identifying other potential recruiters of Haas students. She took over for Jenny Rowe who left this spring, and Sarah Deighton who worked there following Jenny's departure. As a Haas graduate, Feldman says the best part of her new job is "being back in the Haas environment. MBAs are the most creative, exciting, and interesting people I've known, and I love being near their energy." Feldman previously was director of operations at CascadeWorks, a software company founded by her classmate Diane Jovin, MBA 95.

Feldman's e-mail is lfeldman@haas.berkeley.edu and her phone number is 643-4212.

Perce Applies Travel Industry Experience to Alumni Relations Job

When she joined the Haas School on August 9, Kelly Perce transitioned from the private sector to the public sector where she is now the Haas School's assistant director of alumni relations. Having spent seven years in the active travel business at Backroads, a Berkeley-based company, Perce can apply the experience she gained there to her new post: "I will be using my skills in event planning and remote volunteer management to help grow the Haas alumni chapters around the world," she says. She enjoys her colleagues at Haas, and the ability to walk to work, but notes that the biggest challenge is navigating the complex UC system. "It's a little different than the 60 person office I was used to," she says, "but I'm learning quickly." Perce replaces Linda Coffee, who held the same title.

Perce's e-mail is perce@haas.berkeley.edu and her phone number is 643-7442.

Chisom Dreamed of Working at Cal

Josh Chisom joined Academic Affairs as an administrative assistant, a position previously held by Sue McCormack, on September 1. He came to Haas from the University of Texas at Austin where he worked in a career counseling and therapy office. "I knew right off the bat that I wanted to work at Cal, because I really enjoyed my tenure at UT Austin, and I knew that Cal and UT had many similarities. Luckily, I found a great position here at Haas," he says. At the Haas School, Chisom is responsible for room scheduling, some aspects of faculty hiring, and other related duties. He has been enjoying the cooler Northern California weather, and his friendly colleagues. He notes, "Even on the 'hot days,' it's much nicer than the Austin heat."

His e-mail is chisom@haas.berkeley.edu and his phone number is 643-9694.

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The Wall Street Journal, in a sidebar to its business school rankings of September 9, mentioned the Goldman Sachs Foundation's contribution of $1.5 million to the Haas School of Business and Columbia University's National Social Venture Competition. The sidebar says that recruiters don't necessarily reflect their firms' attitudes, explaining that even though recruiters don't generally place a premium on corporate social responsibility, their companies still contribute to university initiatives in this field.

The September 9 Wall Street Journal also quoted a Charles Schwab recruiter in its rankings article that Berkeley MBA students bring teamwork and interpersonal skills that Schwab values.

Wall Street Journal's "Reaching Out" article on minority enrollment mentioned Credit Swiss First Boston's partnership with Berkeley and other schools in an MBA preparation program for minority students.

Terrance Odean, assistant professor in the Finance Group, was quoted in the International Herald Tribune on September 7 in an article titled "Investors, know thy weaknesses."

Patrick DeFreitas, a first-year MBA student, was quoted in Business Week Online on September 6 in the article "For MBAs, Soul-Searching 101." The former online marketing manager says he wants to get the necessary tools and qualifications to make the right decisions.

Priya Raghubir, assistant professor of marketing and Russell Winer, the J. Gary Shansby Professor of Marketing Strategy, were quoted in the Contra Costa Times on September 6 in an article titled, "Marketing products tricky after 9/11." Raghubir said that consumers are becoming more skeptical and far more aware of being manipulated. Winer said that because of consumer skepticism, this date will never be associated with marketing.

Severin Borenstein, the E.T. Grether Professor in Public Policy and Business Administration, was quoted in the San Francisco Chronicle on September 6 in an article titled "War could be costly mistake." Borenstein said that if Saddam Hussein attacks Saudi Arabia and Kuwait, the price of oil will increase significantly.

Hal Varian, Haas professor and dean of the School of Information Management Systems, was quoted in the St. Paul Pioneer Press on September 5 in the article "Broadband Stakeholders Grapple with Price, Policy for Minnesota." Varian said that if broadband's appeal is to increase, its price must come down.

Peter Sealey, adjunct professor of marketing, was quoted in Primedia Business Magazines on September 1 in the article "Future Click." When asked what is wrong with internet marketing, he responded that we are overburdened with choices; the marketers who are going to succeed are those who can make choices easier for consumers.

Consulting to Management published a Guest Editor's Note by Dean Tom Campbell on September 1. Campbell wrote that the diminishing concept of a profession is at the heart of most of the recent business scandals. The first principle of ethics in a free-market economy is to keep the incentives clean for professionals.

Brett Trueman, the Donald and Ruth Seiler Professor of Public Accounting, was quoted in the Financial Times on August 30 in an article titled "Companies & Finance the Americas - Options alarm sweeps Silicon Valley." Contrary to the technology industry's arguments there are good ways of valuing options.

The New York Times published an article by Hal Varian titled "When Economics Shifts From Science to Engineering" on August 29. Varian wrote that economists think of themselves as scientists; their primary goal is to understand how the economy works, but that economists are increasingly being called on to give advice about how to design new economic institutions.

David Levine, associate professor in the Economic Analysis and Policy Group, was quoted in the Contra Costa Times on August 29 in the article "Working women's future bright." He said that women in recent years have increased their presence in the management and professional jobs, but these sectors tend to be lower paying.

Brett Trueman was quoted in the San Jose Mercury News on August 28 in an article titled, "Calpine to Expense Stock Options." He said companies are phasing in the new accounting method for options at different rates, and he would like to see a more uniform standard for making the switch to cut down on confusion for investors.

Hal Varian was quoted in the Chicago Tribune on August 27 in an article titled "Need for quick fix is contagious, dangerous." He said that people tend to get riskier with investments as the rewards increase, and they tend to feel they have not lost much if they did not have it in the first place--the bubble mentality.

An Associated Press article published August 25 on teaching ethics in business schools quoted both David Vogel, George Quist Professor of Business Ethics, and Hans Grande, MBA 2002 and former MBA Association president. The article was picked up by The Harrisburg Patriot on August 27.

Brett Trueman was also quoted in the San Jose Mercury News on August 30 in the article "San Mateo, California-Based Software Firm Offers Cash, Stock for Worthless Options." He praised Siebel Systems' offer to trade now-worthless employee stock options for cash and stock, saying that they are willing to suffer the accounting consequences.

Raymond Miles, professor emeritus and former dean, was quoted in The Asian Wall Street Journal on August 27 in the article "Market Weakness Raises Questions on Stock Options." After the painful bursting of the stock-market bubble and a slew of corporate scandals, he says that some of the things that people held as basic truths are being questioned, and rightly so.

David Vogel was also quoted in the UK's Independent on August 25 in the article "The Ideas Exchange - Expert views - Time to sow seeds of GM harmony." When asked why there continues to be a heated debate in Europe about genetically modified crops, he pointed out that the general public in Europe is less tolerant of food-related risks.

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