Monthly Archives: May 2015

May Edition of the JSFB: “Precision”

In conjunction with the notion of corporate excellence as synonymous with corporate sustainability, this month’s JSFB focuses on the concept of precision — Precision in language, research, incentives, measurement, methodologies, and the general approach to business. In this issue, we draw upon experts including those from The Milken Institute, PwC, PepsiCo, and the Forté Foundation to discuss practicalities and purpose in disease management, R&D productivity, accounting, philanthropic services, and measuring “impact.” It is with precision that we look for insights to leverage the capital markets on behalf of a more regenerative and inclusive global economy.

What is “Corporate Sustainability”? Simply stated, it’s the same as “Corporate Excellence” but over the very long term. Over the very long term, does the company consider the value of all the capital it deploys in pursuit of its stated mission? Does the company consider the returns on the investments made in terms of the financial capital, human capital, and natural capital engaged in its business? Does the company balance the demands of shareholders, employees and customers in a synergistic cycle while recognizing and articulating the trade-offs that inevitably exist?

Regional and Sector Strategy: May Update

We are now underweight the most cyclically sensitive sectors: Industrials, Materials, Energy. While we upgrade the CEEMEA region to Neutral from Underweight — in large part because of an improved earnings outlook — this likely reflects a modest rebound in oil prices, which remain 40% below year-ago levels.