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Professor Michael Useem on CEO politicians

Biography

Wharton School of Business
William and Jacalyn Egan Professor of Management

Education:

PhD, Harvard University; MA, Harvard University; BS, University of Michigan.

Academic Appointment:

William and Jacalyn Egan Professor of Management, 1997-. Director, Wharton Center for Leadership and Change Management, 1996-.

Recent Consulting:

Numerous programs on leadership, decision making, governance, and change with companies and organizations in the private, public, and non-profit sectors in the United States, Asia, Europe, and Latin America, including Abbott, American Express, Cargill, CEO Academy, Cisco, Coca-Cola, DuPont, Estee Lauder, Fidelity Investments, Goldman Sachs, Google, Hewlett-Packard, IBM, Intel, Morgan Stanley, New York Fire Department, Northrop Grumman, Petrobras, Pew Charitable Trusts, Samsung, Sprint, 3M, The New York Times, Toyota, Verizon, United Nations, U.S. Government, and World Economic Forum.

 

Websites:

Wharton Leadership Center

Wharton Leadership Conference

Wharton Leadership Digest

Wharton Leadership Programs

Wharton Nano Tools for Leaders

Washington Post On Leadership

Howard Kunreuther, Erwann Michel-Kerjan, Michael Useem, Rethinking Catastrophic Risk: How Corporate America Copes with Disruption (2016)

Howard Kunreuther, Erwann Michel-Kerjan, Michael Useem, Rethinking Catastrophic Risk: How Corporate America Copes with Disruption (2016)

Howard Kunreuther, Erwann Michel-Kerjan, Michael Useem, Rethinking Catastrophic Risk: How Corporate America Copes with Disruption (2016)

Luis Ballesteros and Michael Useem, “Corporate Activity for Dealing with Societal Risks”. In Rethinking Catastrophic Risk: How Corporate America Copes with Disruption, edited by Howard Kunreuther, Erwann Michel-Kerjan, Michael Useem, (2016),

Luis Ballesteros, Michael Useem, Tyler Wry (2016), Masters of disasters: An empirical analysis of how societies benefit from corporate disaster giving , Academy of Management Journal, Forthcoming.

Luis Ballesteros, Michael Useem, Tyler Wry (Forthcoming), Masters of Disasters? An Empirical Evaluation of the Social Implications of Corporate Disaster Giving.

Abstract: We assess the social value of corporate social responsibility (CSR) by focusing on one of the fastest growing CSR areas worldwide: the corporate provision of monetary and in-kind resources to help communities recover from natural disasters. We use a proprietary dataset that covers all donations from all entities (i.e., firms, governments, multinational agencies, and other NGOs) around the world that were reported in media to all major disasters that affected the world from 2003 to 2013 and a novel quasi-experimental method in the management literature: synthetic control method. We found the competences and routines of the firm economically connected to the affected country generate a comparative advantage for the supply of relief and recovery vis-à-vis traditional foreign national and multilateral donors. Because of these mechanisms, a substantial participation in disaster response by business organizations economically active in the affected country increases the speed of accumulation of relief resources during the first post-disaster month and a greater post-disaster recovery of social welfare, as proxied by the Human Development Index. Because our study informs on the conditions and mechanisms under which a specific form of CSR adds to social welfare, it complements the vast literature exploring a connection between pro-social behavior and firm performance. Consequently, our study contributes to the literature on strategic CSR where the ‘doing-good’ side of the tenet has remained understudied. Taken together, our paper shows how and when corporate disaster giving is a win-win investment for both the firm and society.

Luis Ballesteros and Michael Useem (Working), Local versus Global Institutional Pressures: Organizational Imitation and Multinationality.

Abstract: The management literature has emphasized the role that imitation plays on corporate strategy. Firms tend to align to the social norms observed by reference peers. A widely invoked argument is that the community where firms are originally headquartered imprints them with a longstanding influence toward similar patterns of behavior. In this paper, I suggest that this argument is not easily generalizable once the organization internationalizes. Using the context of philanthropic responses in the aftermath of natural disasters, I show that the non-market activity of multinational firms that share the metropolitan area as headquarters may be significantly different. I find that firms tend to mimic the characteristics of the response of peers from the same industry despite that such organizations have different countries of origin. Furthermore, organizations that share metropolitan region as headquarters show dissimilar responses in a frequency that is not explained by chance. This study extends the global strategy and community literatures by proposing that the influence of geographic location on organizational behavior is less stable than institutional scholars tend to suggest. The systems of social norms and beliefs that firms join as they internationalize become more salient for organizational decision making than those learned in their communities of origin. The study also provides a more nuanced awareness of the role of the non-market activity of multinational enterprises in the context of geographically located systemic shocks. 

Michael Useem (2015), “From Classwide Coherence to Company-Focused Management and Director Engagement,” , Research in the Sociology of Organizations, 43.

Luis Ballesteros and Michael Useem, “How They Did It (Private Giving, Insurance Payouts for Recovery, Execution and Expectations”. In Leadership Dispatches: Chile's Extraordinary Comeback from Disaster, edited by Michael Useem and Howard Kunreuther, (2015), pp. 47-165

Michael Useem and Howard Kunreuther, Leadership Dispatches: Chile's Extraordinary Comeback from Disaster (2015)

Past Courses

  • ### MGMT611 - MANAGING EST ENTERPRISE

The management of large, established enterprises creates a range of multi-facet challenges for the general manager. A general manager needs to understand the internal workings of a firm, how to assess and create a strategy, and how to take into account increasing, globalization. While these issues are distinct, they are very much intertwined. As a result, this course will provide you with an integrated view of these challenges and show you that effective of an established enterprise requires a combination of insights drawn from economics, sociology, psychology and political economy.

  • Core teaching Award WEMBA East, 2011
  • Core teaching Award WEMBA West, 2011
  • Graduate Division Award for Excellence in Teaching, 2004
  • MBA Core Teaching Award, 2003
  • MBA for Executives Program Teaching Award, 2003
  • MBA for Executives Program Teaching Award, 2000
  • MBA Core Teaching Award, 1993
  • Helen Kardon Moss Anvil Award for Teaching Excellence in the Graduate Division, 1992
  • Graduate Division Award for Excellence in Teaching, 1992

  • The Chilean Miner Rescue: A Lesson in Global Teamwork - 03/27/2012

Knowledge @ Wharton

  • Why Leaders Must Balance Ego with Humility, Knowledge @ Wharton - 06/30/2017
  • Can United Recover from Its Customer Service Crisis?, Knowledge @ Wharton - 04/13/2017
  • How Chinese Firms Bootstrapped Their Way to Global Dominance, Knowledge @ Wharton - 03/15/2017
  • How the Immigration Ban Will Impact U.S. Businesses, Knowledge @ Wharton - 01/31/2017
  • Management 101: The Marriage of Strategy and Leadership, Knowledge @ Wharton - 10/11/2016
  • Are Good Managers Born or Made?, Knowledge @ Wharton - 03/15/2016
  • How Shamsheer Vayalil Built VPS Healthcare into a Billion-dollar Firm, Knowledge @ Wharton - 10/19/2015
  • How CEOs Stymie Their Own Digital Transformation, Knowledge @ Wharton - 08/25/2015
  • Empowering Low-income Women through Access to Financial Services, Knowledge @ Wharton - 07/31/2015
  • Back to the Future: GE’s Retooling into an Industrial Powerhouse, Knowledge @ Wharton - 05/12/2015
  • How Corporate Boards Can Make a Difference, Knowledge @ Wharton - 04/24/2015
  • How Smart Leadership Revived Chile after an Historic Disaster, Knowledge @ Wharton - 04/15/2015
  • Bill George: Authentic Leadership and Letting Your Strengths ‘Bloom’, Knowledge @ Wharton - 07/15/2014
  • Lenovo’s Bid to Become the Last Hardware Giant Standing, Knowledge @ Wharton - 02/26/2014
  • What Business Can Learn from the Medal of Honor Tradition, Knowledge @ Wharton - 02/24/2014
  • Satya Nadella’s Challenges as Microsoft’s New CEO, Knowledge @ Wharton - 02/07/2014
  • Boards Revisited: Michael Useem on the New Corporate Governance, Knowledge @ Wharton - 02/04/2014
  • Leadership Challenges at Johnson & Johnson, Knowledge @ Wharton - 01/09/2014
  • Cost Efficient, Open-space Office Designs: Ditching Desks — and Privacy, Knowledge @ Wharton - 06/19/2013
  • Using Community Libraries to Create Social Change in Rural South Asia, Knowledge @ Wharton - 05/08/2013
  • Fueling Growth in Uncertain Times, Knowledge @ Wharton - 05/01/2013
  • GE’s Jeff Immelt on Leadership, Global Risk and Growth, Knowledge @ Wharton - 04/30/2013
  • The New Philanthropists: More Sophisticated, More Demanding — and Younger, Knowledge @ Wharton - 04/24/2013
  • Global Fund’s Jaramillo: ‘If You Are Sure, Move Very Fast’, Knowledge @ Wharton - 03/20/2013
  • Health Care Activist Steve Davis: Avoiding the ‘I’ll Give Back Later’ Trap, Knowledge @ Wharton - 02/27/2013
  • An Insider’s View of The New York Times, Knowledge @ Wharton - 02/19/2013
  • Tyco’s Ed Breen: During a Crisis, ‘Spend a Lot of Time on the Big Swings’, Knowledge @ Wharton - 02/13/2013
  • A ‘Sigh of Relief’ at Davos: Confidence and Caution Shared Center Stage, Knowledge @ Wharton - 01/30/2013
  • With New FDI Reforms Comes India’s Next Challenge: Execution, Knowledge @ Wharton - 09/20/2012
  • The End of Exorbitant CEO Exit Packages? Don’t Hold Your Breath, Knowledge @ Wharton - 07/18/2012
  • Bound for the Beach? Bring These Books…, Knowledge @ Wharton - 06/26/2012
  • Medal of Honor: Defining the Essence of Leadership, Knowledge @ Wharton - 06/08/2012
  • Leadership Lessons from On High, Knowledge @ Wharton - 04/09/2012
  • Mt. Everest, Part II: Learning from a Second Climb of the World’s Highest Mountain, Knowledge @ Wharton - 04/09/2012
  • Pop Quiz: Can Indra Nooyi Revive PepsiCo?, Knowledge @ Wharton - 03/28/2012
  • The Chilean Miner Rescue: A Lesson in Global Teamwork, Knowledge @ Wharton - 03/27/2012
  • Where the Jobs Are, Knowledge @ Wharton - 02/10/2012
  • Davos 2012: ‘Joblessness and Its Discontents’, Knowledge @ Wharton - 02/01/2012
  • IBM’s Sam Palmisano: ‘Always Put the Enterprise Ahead of the Individual’, Knowledge @ Wharton - 01/18/2012
  • Wharton’s Michael Useem: ‘Global Protests Are an Indictment of Leadership and a Call for Leadership’, Knowledge @ Wharton - 12/14/2011
  • Seven Top Leaders on Making Tough Calls and Serving for the Greater Good, Knowledge @ Wharton - 12/09/2011
  • ‘Great by Choice’: Jim Collins and Morten T. Hansen on Excelling in Uncertain Times, Part Two, Knowledge @ Wharton - 11/30/2011
  • ‘Great by Choice’: Jim Collins and Morten T. Hansen on Excelling in Uncertain Times, Part One, Knowledge @ Wharton - 11/22/2011
  • Inside Job: Changing of the Guard at IBM, Knowledge @ Wharton - 10/26/2011
  • Limited Seating: Mixed Results on Efforts to Include More Women at the Corporate Board Table, Knowledge @ Wharton - 10/26/2011
  • Wharton’s Harbir Singh: How Indian Firms Can Take Advantage of Global Opportunities, Knowledge @ Wharton - 10/20/2011
  • Ten Years After 9/11 — Risk Management in the Era of the Unthinkable, Knowledge @ Wharton - 09/09/2011
  • Leading on 9/11 and Beyond: New York City Fire Department’s Joseph Pfeifer, Knowledge @ Wharton - 09/08/2011
  • For Expatriates in the Gulf, Ignoring Ramadan Customs Could Spell Trouble, Knowledge @ Wharton - 08/01/2011
  • Get Me Rewrite: What’s Next for Murdoch’s Media Empire?, Knowledge @ Wharton - 07/20/2011
Wharton School of Business
William and Jacalyn Egan Professor of Management

Education:

PhD, Harvard University; MA, Harvard University; BS, University of Michigan.

Academic Appointment:

William and Jacalyn Egan Professor of Management, 1997-. Director, Wharton Center for Leadership and Change Management, 1996-.

Recent Consulting:

Numerous programs on leadership, decision making, governance, and change with companies and organizations in the private, public, and non-profit sectors in the United States, Asia, Europe, and Latin America, including Abbott, American Express, Cargill, CEO Academy, Cisco, Coca-Cola, DuPont, Estee Lauder, Fidelity Investments, Goldman Sachs, Google, Hewlett-Packard, IBM, Intel, Morgan Stanley, New York Fire Department, Northrop Grumman, Petrobras, Pew Charitable Trusts, Samsung, Sprint, 3M, The New York Times, Toyota, Verizon, United Nations, U.S. Government, and World Economic Forum.

 

Websites:

Wharton Leadership Center

Wharton Leadership Conference

Wharton Leadership Digest

Wharton Leadership Programs

Wharton Nano Tools for Leaders

Washington Post On Leadership

Howard Kunreuther, Erwann Michel-Kerjan, Michael Useem, Rethinking Catastrophic Risk: How Corporate America Copes with Disruption (2016)

Howard Kunreuther, Erwann Michel-Kerjan, Michael Useem, Rethinking Catastrophic Risk: How Corporate America Copes with Disruption (2016)

Howard Kunreuther, Erwann Michel-Kerjan, Michael Useem, Rethinking Catastrophic Risk: How Corporate America Copes with Disruption (2016)

Luis Ballesteros and Michael Useem, “Corporate Activity for Dealing with Societal Risks”. In Rethinking Catastrophic Risk: How Corporate America Copes with Disruption, edited by Howard Kunreuther, Erwann Michel-Kerjan, Michael Useem, (2016),

Luis Ballesteros, Michael Useem, Tyler Wry (2016), Masters of disasters: An empirical analysis of how societies benefit from corporate disaster giving , Academy of Management Journal, Forthcoming.

Luis Ballesteros, Michael Useem, Tyler Wry (Forthcoming), Masters of Disasters? An Empirical Evaluation of the Social Implications of Corporate Disaster Giving.

Abstract: We assess the social value of corporate social responsibility (CSR) by focusing on one of the fastest growing CSR areas worldwide: the corporate provision of monetary and in-kind resources to help communities recover from natural disasters. We use a proprietary dataset that covers all donations from all entities (i.e., firms, governments, multinational agencies, and other NGOs) around the world that were reported in media to all major disasters that affected the world from 2003 to 2013 and a novel quasi-experimental method in the management literature: synthetic control method. We found the competences and routines of the firm economically connected to the affected country generate a comparative advantage for the supply of relief and recovery vis-à-vis traditional foreign national and multilateral donors. Because of these mechanisms, a substantial participation in disaster response by business organizations economically active in the affected country increases the speed of accumulation of relief resources during the first post-disaster month and a greater post-disaster recovery of social welfare, as proxied by the Human Development Index. Because our study informs on the conditions and mechanisms under which a specific form of CSR adds to social welfare, it complements the vast literature exploring a connection between pro-social behavior and firm performance. Consequently, our study contributes to the literature on strategic CSR where the ‘doing-good’ side of the tenet has remained understudied. Taken together, our paper shows how and when corporate disaster giving is a win-win investment for both the firm and society.

Luis Ballesteros and Michael Useem (Working), Local versus Global Institutional Pressures: Organizational Imitation and Multinationality.

Abstract: The management literature has emphasized the role that imitation plays on corporate strategy. Firms tend to align to the social norms observed by reference peers. A widely invoked argument is that the community where firms are originally headquartered imprints them with a longstanding influence toward similar patterns of behavior. In this paper, I suggest that this argument is not easily generalizable once the organization internationalizes. Using the context of philanthropic responses in the aftermath of natural disasters, I show that the non-market activity of multinational firms that share the metropolitan area as headquarters may be significantly different. I find that firms tend to mimic the characteristics of the response of peers from the same industry despite that such organizations have different countries of origin. Furthermore, organizations that share metropolitan region as headquarters show dissimilar responses in a frequency that is not explained by chance. This study extends the global strategy and community literatures by proposing that the influence of geographic location on organizational behavior is less stable than institutional scholars tend to suggest. The systems of social norms and beliefs that firms join as they internationalize become more salient for organizational decision making than those learned in their communities of origin. The study also provides a more nuanced awareness of the role of the non-market activity of multinational enterprises in the context of geographically located systemic shocks. 

Michael Useem (2015), “From Classwide Coherence to Company-Focused Management and Director Engagement,” , Research in the Sociology of Organizations, 43.

Luis Ballesteros and Michael Useem, “How They Did It (Private Giving, Insurance Payouts for Recovery, Execution and Expectations”. In Leadership Dispatches: Chile's Extraordinary Comeback from Disaster, edited by Michael Useem and Howard Kunreuther, (2015), pp. 47-165

Michael Useem and Howard Kunreuther, Leadership Dispatches: Chile's Extraordinary Comeback from Disaster (2015)

Past Courses

  • ### MGMT611 - MANAGING EST ENTERPRISE

The management of large, established enterprises creates a range of multi-facet challenges for the general manager. A general manager needs to understand the internal workings of a firm, how to assess and create a strategy, and how to take into account increasing, globalization. While these issues are distinct, they are very much intertwined. As a result, this course will provide you with an integrated view of these challenges and show you that effective of an established enterprise requires a combination of insights drawn from economics, sociology, psychology and political economy.

  • Core teaching Award WEMBA East, 2011
  • Core teaching Award WEMBA West, 2011
  • Graduate Division Award for Excellence in Teaching, 2004
  • MBA Core Teaching Award, 2003
  • MBA for Executives Program Teaching Award, 2003
  • MBA for Executives Program Teaching Award, 2000
  • MBA Core Teaching Award, 1993
  • Helen Kardon Moss Anvil Award for Teaching Excellence in the Graduate Division, 1992
  • Graduate Division Award for Excellence in Teaching, 1992

  • The Chilean Miner Rescue: A Lesson in Global Teamwork - 03/27/2012

Knowledge @ Wharton

  • Why Leaders Must Balance Ego with Humility, Knowledge @ Wharton - 06/30/2017
  • Can United Recover from Its Customer Service Crisis?, Knowledge @ Wharton - 04/13/2017
  • How Chinese Firms Bootstrapped Their Way to Global Dominance, Knowledge @ Wharton - 03/15/2017
  • How the Immigration Ban Will Impact U.S. Businesses, Knowledge @ Wharton - 01/31/2017
  • Management 101: The Marriage of Strategy and Leadership, Knowledge @ Wharton - 10/11/2016
  • Are Good Managers Born or Made?, Knowledge @ Wharton - 03/15/2016
  • How Shamsheer Vayalil Built VPS Healthcare into a Billion-dollar Firm, Knowledge @ Wharton - 10/19/2015
  • How CEOs Stymie Their Own Digital Transformation, Knowledge @ Wharton - 08/25/2015
  • Empowering Low-income Women through Access to Financial Services, Knowledge @ Wharton - 07/31/2015
  • Back to the Future: GE’s Retooling into an Industrial Powerhouse, Knowledge @ Wharton - 05/12/2015
  • How Corporate Boards Can Make a Difference, Knowledge @ Wharton - 04/24/2015
  • How Smart Leadership Revived Chile after an Historic Disaster, Knowledge @ Wharton - 04/15/2015
  • Bill George: Authentic Leadership and Letting Your Strengths ‘Bloom’, Knowledge @ Wharton - 07/15/2014
  • Lenovo’s Bid to Become the Last Hardware Giant Standing, Knowledge @ Wharton - 02/26/2014
  • What Business Can Learn from the Medal of Honor Tradition, Knowledge @ Wharton - 02/24/2014
  • Satya Nadella’s Challenges as Microsoft’s New CEO, Knowledge @ Wharton - 02/07/2014
  • Boards Revisited: Michael Useem on the New Corporate Governance, Knowledge @ Wharton - 02/04/2014
  • Leadership Challenges at Johnson & Johnson, Knowledge @ Wharton - 01/09/2014
  • Cost Efficient, Open-space Office Designs: Ditching Desks — and Privacy, Knowledge @ Wharton - 06/19/2013
  • Using Community Libraries to Create Social Change in Rural South Asia, Knowledge @ Wharton - 05/08/2013
  • Fueling Growth in Uncertain Times, Knowledge @ Wharton - 05/01/2013
  • GE’s Jeff Immelt on Leadership, Global Risk and Growth, Knowledge @ Wharton - 04/30/2013
  • The New Philanthropists: More Sophisticated, More Demanding — and Younger, Knowledge @ Wharton - 04/24/2013
  • Global Fund’s Jaramillo: ‘If You Are Sure, Move Very Fast’, Knowledge @ Wharton - 03/20/2013
  • Health Care Activist Steve Davis: Avoiding the ‘I’ll Give Back Later’ Trap, Knowledge @ Wharton - 02/27/2013
  • An Insider’s View of The New York Times, Knowledge @ Wharton - 02/19/2013
  • Tyco’s Ed Breen: During a Crisis, ‘Spend a Lot of Time on the Big Swings’, Knowledge @ Wharton - 02/13/2013
  • A ‘Sigh of Relief’ at Davos: Confidence and Caution Shared Center Stage, Knowledge @ Wharton - 01/30/2013
  • With New FDI Reforms Comes India’s Next Challenge: Execution, Knowledge @ Wharton - 09/20/2012
  • The End of Exorbitant CEO Exit Packages? Don’t Hold Your Breath, Knowledge @ Wharton - 07/18/2012
  • Bound for the Beach? Bring These Books…, Knowledge @ Wharton - 06/26/2012
  • Medal of Honor: Defining the Essence of Leadership, Knowledge @ Wharton - 06/08/2012
  • Leadership Lessons from On High, Knowledge @ Wharton - 04/09/2012
  • Mt. Everest, Part II: Learning from a Second Climb of the World’s Highest Mountain, Knowledge @ Wharton - 04/09/2012
  • Pop Quiz: Can Indra Nooyi Revive PepsiCo?, Knowledge @ Wharton - 03/28/2012
  • The Chilean Miner Rescue: A Lesson in Global Teamwork, Knowledge @ Wharton - 03/27/2012
  • Where the Jobs Are, Knowledge @ Wharton - 02/10/2012
  • Davos 2012: ‘Joblessness and Its Discontents’, Knowledge @ Wharton - 02/01/2012
  • IBM’s Sam Palmisano: ‘Always Put the Enterprise Ahead of the Individual’, Knowledge @ Wharton - 01/18/2012
  • Wharton’s Michael Useem: ‘Global Protests Are an Indictment of Leadership and a Call for Leadership’, Knowledge @ Wharton - 12/14/2011
  • Seven Top Leaders on Making Tough Calls and Serving for the Greater Good, Knowledge @ Wharton - 12/09/2011
  • ‘Great by Choice’: Jim Collins and Morten T. Hansen on Excelling in Uncertain Times, Part Two, Knowledge @ Wharton - 11/30/2011
  • ‘Great by Choice’: Jim Collins and Morten T. Hansen on Excelling in Uncertain Times, Part One, Knowledge @ Wharton - 11/22/2011
  • Inside Job: Changing of the Guard at IBM, Knowledge @ Wharton - 10/26/2011
  • Limited Seating: Mixed Results on Efforts to Include More Women at the Corporate Board Table, Knowledge @ Wharton - 10/26/2011
  • Wharton’s Harbir Singh: How Indian Firms Can Take Advantage of Global Opportunities, Knowledge @ Wharton - 10/20/2011
  • Ten Years After 9/11 — Risk Management in the Era of the Unthinkable, Knowledge @ Wharton - 09/09/2011
  • Leading on 9/11 and Beyond: New York City Fire Department’s Joseph Pfeifer, Knowledge @ Wharton - 09/08/2011
  • For Expatriates in the Gulf, Ignoring Ramadan Customs Could Spell Trouble, Knowledge @ Wharton - 08/01/2011
  • Get Me Rewrite: What’s Next for Murdoch’s Media Empire?, Knowledge @ Wharton - 07/20/2011
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