GSM 504F Finance and Society
As the gatekeepers to finance, Wall Street and its cousins around the world are responsible for allocating scarce capital to the most promising sectors and businesses. Traditionally, MBA programs taught that these "promising" sectors were those most likely to maximize profits for shareholders. Other stakeholders, including government and society, were considered for their nuisance value rather than for their intrinsic worth. In the past two decades, however, the notion of the Triple Bottom Line, which encompasses the social, environmental, and economic performance of a business, has gained credence. This class will explore how Wall Street has - or has not - contributed to social welfare in the past, and how students can become responsible members of the global finance community in the future. We will begin by reviewing the recent history of financial scandals, scams, and crises, starting with the Decade of Greed in the 1980s. Then we will consider efforts to incorporate Triple Bottom Line thinking into the world of finance, from socially responsible investing to microfinance to impact investing. Coursework will be experiential rather than theoretical, focusing on case studies and teamwork, to hone the analytical and decision-making skills necessary for a successful career.