Frederic Barge

Dec 10, 2024 | imd.org | Frederic Barge |Karl Schmedders

Corporate commitment to sustainability can boost a company’s reputation and is generally regarded as the right thing to do for long-term performance, but some firms are finding that the positive effects of their green strategies do not carry over to the world’s stock markets, where short-term returns still rule. From a corporate point of view, there are many good arguments for accepting a temporary dip in profits while transitioning to more sustainable operations.

Jul 13, 2023 | imd.org | Frederic Barge |Karl Schmedders |David Bach |Sunnie Groeneveld

 Marketing has often been seen as a way of driving people to consume more, but this is a role that is becoming less relevant as customers become more concerned about sustainability. Yet this does not mean that marketing cannot continue to serve a useful purpose. Admittedly, marketing has sometimes had a bad image. It is seen as excessive, consumerist, prone to exaggeration, and complicit in overusing resources and polluting the environment. For many, it is the visible face of capitalism.

Apr 27, 2023 | imd.org | Frederic Barge |Karl Schmedders |Sunnie Groeneveld |Simone Menne

1. The performance yardstick Financial performance measures play a key role in determining executive pay. We think companies should broaden those performance targets to include the long-term value generated for all stakeholders, not just short-term operational goals.  On the financial performance side, one yardstick is the Long-Term Investor Value Appropriation (LIVA) framework, which uses share price data to calculate long-term value creation, or destruction, for shareholders.