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DIRECTOR'SLETTERDIRECTOR'SLETTER

I’mamazedtoalreadybewrappingupmyfirstyearasAcademicDirector.Ithasbeenayearfilledwiththe

unexpected,butnoneofthechallengessetusback.Wehavereachedalmost2,000studentssofarthisyear

throughourcurricularandco-curricularprogramming.Wearecollaboratingwithpartnersbothwithinandoutsideof

theUniversity,andweareengagingwithnewideastofurtherourmission.Hereareafewhighlightsfromour

semestersofar,whatwehaveplannedfortherestoftheSpringandacoupletransitionannouncementsamongour

staff.

READMORE>

INDEPTHINDEPTH

CORPORATESUSTAINABILITYINVESTMENTSANDTHEMARKET

ByRachelleSampson,Professor

RobertH.SmithSchoolofBusiness

Doestheownershipsstatusofacompanyaffectitswillingnesstomakesustainability-relatedinvestments?Maggie

Zhou,ProfessorattheRossSchoolofBusinessattheUniversityofMichigan,andIhavebeguntoexaminethis

question,focusingondifferencebetweenpubliclyandprivatelyownedfirmsonthreeenvironmentalvariables:

energyefficiency,toxicemissionsandabatementspending.Ouremphasisiswhetherandhowmuchpublic

ownershipforcesashort-termperspectiveonthesevariables,leadingtoreducedinvestmentandenvironmental

responsiveness.

READMORE>

ALUMNISPOTLIGHT:ALUMNISPOTLIGHT:

R. NAGESHRAOMBA'11

STUDENTSPOTLIGHT:STUDENTSPOTLIGHT:

KATICAKISSMBA'15FACULTYSPOTLIGHT:FACULTYSPOTLIGHT:

JIMSANDERS

WHAT'SNEW:WHAT'SNEW:

STUDENTCONSULTANTSAWAKENENTREPRENEURIAL

DESIRESINTIBETANYOUTH

IncollaborationwiththeCentralTibetanAdministration(CTA)in

northernIndia,ateamoffourgraduatestudentsareco-

developinganentrepreneurshipprogramforTibetanyouthliving

inrefugeinIndia.It’sthefirston-siteinternationalprojectfor

CSVC’saward-winningChangeTheWorld.org(CTW)Nonprofit

ConsultingProgram.ProgramDirectorPammiBhullarledthe

multi-disciplinaryteamoffourstudents–threepursuingtheir

MBAandMSdegreesfromtheSmithSchoolandoneworkingonamasterofpublicpolicy-comprisedofRahul

Shah,NickFu,VictoriaRyan,andVeenaThangavelu.

Theteamconductedon-siteinterviewswiththeTibetanEntrepreneurshipDevelopmentInitiative,Tibetan

entrepreneurs,schooladministratorsandstudentsattheTibetanChildren’sVillage.Toculminatetheirin-country

experience,theteammetwithPrimeMinisterLobsangSangaywhoreinforcedtheimportanceofyouth

entrepreneurshipinpropellingtheeconomicprosperityoftheTibetanpeople.Theteampresentedtheirfinal

recommendationsdiscussedtheirexperienceattheChangeTheWorld.orgSymposiumonApril21st.Formoreon

thisstory,visit"NewsatSmith,"andtoseepicturesfromthetrip,visitourFacebookAlbum.

STUDENTSSHINEASSOCIALENTREPRENEURSINDO

GOODCHALLENGEFINALS

UniversityofMarylandstudentsaimingto"dogood"willpresent

theirexcitingsocialventureideasanddogoodprojectsliveat

theDoGoodChallengeFinalsonApril28!Sixteamswill

competeformorethan$20,000inprizesinfrontofalive

audienceandpanelofjudgesattheRiggsAlumniCenter

from7:00pm-9:00pm.BenSimon,co-founderandExecutive

DirectoroftheFoodRecoveryNetwork-andfirstplacewinner

oftheinaugural2012DoGoodchallenge-willserveasoneof

thejudges.TheDoGoodChallenge,presentedbytheSchoolof

PublicPolicy,theSmithSchoolofBusiness,andMorgan

StanleyPrivateWealthManagementisanannualcompetitionthatinspiresstudentstoadvancetheirfavoritesocial

causes.Studentsfundraise,volunteer,spreadawarenessandstarttheirownsocialventuresduringthecompetition.

Learnmoreaboutthefinalshere.

STUDENTSDEVELOPBUSINESSPLANTORESTORE

CHESAPEAKEBAY

InSpring,2015theCenterforSocialValueCreationandthe

UniversityofMarylandEnvironmentalFinance

CenterestablishedajointstudentledTaskForcechargedwith

developingadetailedbusinessplanfocusedonpublic‐private

financingtorestoreandprotecttheChesapeakeBay.TheTask

ForceiscomprisedoffourSmithMBA’sandfourEnvironmental

FinanceCenterProjectAssistantsfromtheSchoolofPublic

Policy.TheteamisguidedandmentoredbyanAdvisoryPanel

ofexpertsfromkeydisciplinesandindustriesincluding:Public

andprivatesectorfinanceandbanking;Scienceandecological

modeling;Institutionalmanagementandleadership;Environmentalpolicy;and,Philanthropy,nonprofitmanagement,

andsocialvaluecreation.Inadditiontopresentingnewpublic-privatefinancingmechanismsforBayrestoration,the

processesandmodelsdevelopedbythestudentteamwillhaveapplicabilityandimpactinwatershedsacrossthe

regionandthecountry.Formoreinformation,contactPammiBhullar.

CHANGETHEWORLDSYMPOSIUM

OnTuesday,April21stCSVChostedtheChangeTheWorld.org

NonprofitConsultingProgramSymposium!Seventeenteamsof

undergraduateandgraduatestudentsshowcasedtheirfindings

anddiscussedtheirexperiencesinworkingwithsocial

enterprisesandnonprofitsthroughouttheregion,andtheworld.

TheCTWSymposiumisafun,interactiveexperiencethat

enablesgueststospeakwithstudentsandlearnhowclassroom

conceptsarebeingtoreal-worldbusinesschallengesthrough

thisawardwinningprogram.Theeventbeganwitha

presentationfromCTW’sfirston-siteinternationalconsulting

teamwhoworkedwithTibetanYouthinIndia,andthenshowcased19studentteams.Interestedinlearning

more?Clickhereformoredetails.

RECAP:RECAP:

SOCIALENTERPRISESYMPOSIUMCREATESCROSS

CAMPUSBUZZ

OnFriday,February27CSVChostedits7thAnnualSocial

EnterpriseSymposium(SES).OverthelastsixyearsSEShas

becomeUMD'spremiereeventonsocialenterpriseandsocial

entrepreneurship,dedicatedtoexploringtheconnection

betweeneconomicprosperityandlastingsocialand

environmentalchange.Thisyearweagaindrewstudents,

facultyandstafffromacrosstheUniversityofMarylandcampus

andbeyond,andadynamicmorningkeynote

fromTOMShelpedkickthingsoffonahigh-note.Theafternoon

provedtobejustasinspiringfilledwithenergizingpanelsandempoweringworkshops.AlliesfromtheSchoolof

PublicPolicy,theCollegeofBehavioralandSocialSciences,theCollegeofArt&Humanities,andtheAcademyfor

InnovationandEntrepreneurshipallinvestedtimeandtalenttocollaborateonthisyear’sevent.TheSymposium

alsofeaturedashowcaseofstudent-ledsocialventurescompetingintheDoGoodChallengeandaseriesofshort,

highenergypresentationsbysocialentrepreneursandchangemakers.Learnmorehereandseethepicturesfrom

SESinourFacebookAlbum.

UMDHOSTSTHEASHOKAUEXCHANGE

TheUniversityofMarylandhostedthe2015AshokaU

Exchange(Feb.26-28),theworld’slargestconveningfor

innovatorsembeddingsocialentrepreneurshipinhigher

education.TheExchangebroughttogetherconstituentsfrom

150universitiesand35countries.CSVCledtheUMDplanning

teamforthisexcitingthree-dayevent,alongwithpartnersfrom

theCenterforPhilanthropyandNonprofitLeadership,the

CollegeofBehavioralandSocialSciences,andtheAcademyforInnovationandEntrepreneurship.TheExchange

featuredPresidentWallaceLoh,ProvostMayAnnRankinandincludedpresentationsfrom18UMDfacultyandstaff

– includingeveryoneontheCSVCteam!TheAshokaUExchangeprovidedanopportunityforUMDtoshowcaseits

campus-widecommitmenttochangemakingandsocialentrepreneurship,andservedasaplatformtobringUMD

changemakersclosertogether.LearnmoreabouttheAshokaUExchangehere.

CSVCRECEIVESCORDESINNOVATIONAWARD

CVSC'SsignatureChangeTheWorld.orgNonprofitConsulting

Program(CTW)wasawardedTheAshokaUCordesInnovation

Awardatthe2015AshokaUExchage,distinguishingCTWasa

highimpactandhighlyreplicableeducationinnovation.CTW

wasoneofsixhighimpact2015awardees.PammiBhullar,

ProgramDirectorofExperientialLearningattheCenterfor

SocialValueCreationpresentedontheprogramonDay2ofthe

AshokaUExchange.CheckoutPammi'spresentationonline,

andlearnmoreabouttheAshokaUCordesInnovationAward.

FROMTHEBLOG:FROMTHEBLOG:

STORIESOFIMPACT:STUDYINGSOCIAL

ENTREPRENEURSHIPABROAD

ForfreshmanNjeriWarrington,studyingabroadseemedan

elusiveconsiderationforhersenioryearofcollege.Butthenshe

learnedabouttheMarylandSocialEntrepreneurCorps(MSEC)

– an8weeksummerinternshipabroadfocusedonsocial

entrepreneurship.MSECsendsundergraduatestudentstothe

DominicanRepublic,EcuadororNicaraguatohelpcombat

povertybysupportingsmallcommunity-basedbusinesses.

READMORE>

STORIESOFIMPACT:APASSIONFORPUBLICHEALTH

UniversityofMarylandundergradHannahBreakstoneattended

theSocialEnterpriseSymposiumtwicepriortothe2014

Symposium,butthisonewasdifferent.Breakstone,interested

inacareerinPublicHealth,wasdeterminedtonetworkand

meetpeopleintheimpactcommunity.Sheconnectedwith

RobertJordan,AdvisoryNeighborhoodCommissioner,and

becamepartofamultidimensionalcommunitydevelopment

programinWard7.

READMORE>

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DIRECTOR'SLETTERDIRECTOR'SLETTER

I’mamazedtoalreadybewrappingupmyfirstyearasAcademicDirector.Ithas

beenayearfilledwiththeunexpected,butnoneofthechallengessetusback.

Wehavereachedalmost2,000studentssofarthisyearthroughourcurricular

andco-curricularprogramming.Wearecollaboratingwithpartnersbothwithin

andoutsideoftheUniversity,andweareengagingwithnewideastofurtherour

mission.HereareafewhighlightsfromourSpringsofar:

Our7thAnnualSocialEnterpriseSymposium(SES)washosttoover600

UMDstudentsandover100studentsfromacrosstheglobeaspartofthe

AshokaUExchange.Itwasinspiringtobringstudentsfromacross

campustogetherwithstudentsengagedinsocialinnovationworld-wide.

SimultaneouswithSES,UMDhostedtheAshokaUExchange,a

gatheringoffaculty,staffandstudentsengagedtopromotesocial

innovationinhighereducationfrom150universitiesand35countries.

CSVCledtheUMDplanningteamforthisexcitingeventthatfeaturedourPresidentandProvostas

speakers,anddeepenedUMD’scommitmenttobeingaChangemakerCampus.Overall,UMDhad18

speakerssharetheirprogramsandideas–includingalloftheCSVCstaff!Wewerethrilledtoalsoreceivea

CordesInnovationAward,distinguishingtopgloballyrelevantteaching,learning,andpartnershippractices

thatmaybeadaptedandreplicatedacrossthefield,foroursignatureChangeTheWorld.orgNonprofit

ConsultingProgram.PammiBhullarknockeditoutoftheparkindeliveringanacceptancespeechand

presentationontheExchangemainstage.

Butthat’snotallwe’redoingthissemester.Joinusinthenextcoupleweeks:

TheChangeTheWorld.orgSymposiumwillbeonApril21stat6:30pm.Hearaboutthechangecreated

throughthissemester’sexperientiallearning–includingapresentationfromourfirston-siteinternational

ChangeTheWorldproject!BesuretocongratulatePammiinpersonforherexcellentworkandfortheAshoka

UCordesInnovationAward.

TheDoGoodChallengefinalsareonApril28that7pm.WatchsixofUMD’smostexcitingchangmakers

pitchtheirimpactandcreativityduringtheDoGoodChallengeformorethan$20,000inprizes.We

guaranteeyouwillbeinspiredbythegoodthatishappeningatUMD.

Finally,Iwouldliketoannounceacoupletransitionsamongourstaff.First,RyanSteinbach,Community

EngagementManager,willbemovingonfromCSVCMay1st.RyanhasacceptedapositionwithaWashingtonD.C

basedstart-upsocialenterprisecalledImpactBusinessLeaders.Ryanhasbeenanimportantandvaluedmember

ofCSVCsincehisearlydaysasastudentatSmith,andonthroughhistermasafull-timestaffmember.Whilewe’ll

mostcertainlymisshim,we’resoexcitedforthisnextstepinhisjourney.WeknowRyanwillcontinuetobeanallyof

CSVC.

Second,IamexcitedtoannouncethatElanaFine,ManagingDirectorofDingmanCenterforEntrepreneurship,has

agreedtobetheActingManagingDirectorforCSVCuntilapermanentManagingDirectorishired.Elanahasspent

thelastthreeyearstakingtheDingmanCentertonewheightsandiseagertohelpCSVCtransitionintoitsnext

stageofdevelopment.Thiswillgivememoretimetofocusonthecurriculumandresearchcomponentsofthe

Center,butIcan’tthinkofabetterwaytohavelearnedaboutallthegoings-onatCSVCthantohavejumpedinwith

theteamonallfronts.WelcomeandthankyoutoElana!

Thankstoallofyouforbeingpartofourcommunityandhelpingtomaketheworldabetterplace.Welookforward

toseeingyouatoureventsaswecloseouttheSpringSemester.

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INDEPTHINDEPTH

CorporateSustainabilityInvestmentsandtheMarket

ByRachelleSampson,AssociateProfessor

RobertH.SmithSchoolofBusiness

Doestheownershipsstatusofacompanyaffectits

willingnesstomakesustainability-relatedinvestments?

MaggieZhou,ProfessorattheRossSchoolofBusinessat

theUniversityofMichigan,andIhavebeguntoexamine

thisquestion,focusingondifferencebetweenpubliclyandprivatelyownedfirms.

Wewereinspiredbypreviousresearchonthemyopiainducingeffectsofcapitalmarkets.Recentresults

suggestthatpublicfirmsinvestless,arelesssensitivetoinvestmentopportunitiesanddiscountfuturecash

flowsmoreheavilythanprivatefirms.‘Marketmyopia,’orpressurefrominvestorstosmoothearningsand

makeshorttermtargets,mayleadlistedfirmstoforgoprofitableinvestmentopportunitiesandcutspending

thathaslongertermpayoffs.

Butdoesthisalsoapplytosustainability-relatedinvestments?Ourresearchexaminestheinfluenceofplant

ownershipstatusonthreeenvironmentalvariables:energyefficiency,toxicemissionsandabatement

spending.Ouremphasisiswhetherandhowmuchpublicownershipforcesashort-termperspectiveon

thesevariables,leadingtoreducedinvestmentandenvironmentalresponsiveness.Incontrasttoprivate

firms,publicfirmsaresubjecttoamyriadofexternalpressurestomaximizeshorttermearningsandother

variablesnotrelatedtoenvironmentalperformance.Wequestionwhetherthisleadsthesefirmstofavor

investmentswithshorttermpayoffsoverthosewithlongertermpayoffs.

Whilepublicfirmsmayhaveinvestmentincentivesthatstronglyfavortheshortterm,it’salsoimportantto

considerhowpressuresforimprovedfiscalperformancemayalsoleadpublicfirmstoinvestmoreincost

cutting,whichcaninvolvegreaterenergyefficiencyandwastereduction.Wealsoexaminewhetherexternal

pressuresonfirmbehavior,whetherfromregulatory,investororconsumersources,alterstheeffectsof

ownershipstatusonefficiency,emissionsorabatementspending.

UsingmanufacturingplantleveldatafromtheUSCensusofManufactures,wefindthatpubliclyowned

manufacturingfacilitiesarelessenergyefficient,buthavelowertoxicemissionsandspendlessonpollution

abatementthantheirprivatecounterparts.Thesedifferencesbetweenpublicandprivateplantssuggest

differencesindecision-makingbasedonownershipstatus,reflectingtheuniquepressuresthatpublicly

ownedfirmsexperience.

Wefurtherexaminedhowvaryingexternalpressuresonpublicfirmsaffectenergyefficiency,emissionsand

pollutionabatement.Specifically,weexaminewhethertheseenvironmentaloutcomesareaffectedbythe

extentofafirm’sinstitutionalownershipandhowmuchthefirmisfocusedonendconsumermarkets

(capturedviaafirm’sadvertisingintensity).Increasedinstitutionalownershipcanleadtogreaterpressureto

meetshort-termearningstargets(e.g.,Bushee1998),whichwouldpresumablyleadsuchfirmstoinvest

lessinprojectswithlongtermpayoffhorizons,suchasinvestmentsinenergyefficiencyandwaste

reduction.Wefindthatplantswithgreatersharesofinstitutionalownersarelessenergyefficienton

average,providingsomeevidenceofcapitalmarketmyopia,consistentwithrecentresearch(Asker,Farre-

MensaandLjungqvist,2014).

Theimportanceofbrandtoafirmalsohasanimpactonenergyefficiency;firmswithgreateradvertising

intensityarelessenergyefficientonaverage.Thissuggeststhat,onaverage,consumersdonot

discriminateonenergyefficiencyandthatbrandvalueisthusunaffectedbyafirm’senergyefficiency.This

islikelyduetotwofactors:alackofinterestbyconsumers,particularlyintheearlyyearsofoursample,and

difficultiesinassessingafirm’senergyefficiencyfromoutside.Itappearsthatfirmsheavilyinvestedin

brandedproductsinvestdifferentlyandlessonenergyefficiency(assumingthatenergyefficiencyarisesout

offirminvestment).

Overalltheseresultsprovidelargesampleevidenceconsistentwithshort-termisminmanufacturingfirms.

Pressurestomakeshort-termearningstargetsmakefirmslesslikelytoinvestinopportunitieswitheither

lesstransparentorlongerpayoffperiods.Investmentsinbothenergyefficiencyandwastereduction(which

leadstoareductionintoxicemissions)tendtohavelongerpayoffperiodswithpayoffsthataresometimes

difficulttoestimate.Inthissense,ourinitialresearchillustratesapotentialcostofcapitalmarkets–worse

environmentalperformance.

Thepolicyimplicationsarestraightforward;capitalmarkets,whileprovidinggreaterliquidity,havecoststhat

gobeyondoptimalinvestmenttoenvironmentalperformance.Therearealso,however,strategyimplications

forfirmsconsideringownershipstructure.Publicownershipcomeswithconstraintsthatcansignificantly

distortinvestmentdecisions,leadingtosub-optimalperformanceinthelongterm.Suchperformance

penaltiescanariseoutoffailuretoinvestinopportunitiesormaybemoreindirect,suchasnotredesigning

manufacturingprocessestomakethemmoreenergyandwasteefficient.Thesetypesofinvestmentsare

oftenheavilydiscountedinfavorofinvestmentsinnewmarketsornewproducts,eventhoughthepayoffs

canbesignificantfromefficiencydriveninvestment.

Ourfutureworkwilldelvefurtherintodifferencesbetweenpublicandprivateplants.We’realsoconsidering

additionalresearchintothefinergraineddifferencesbetweenpublicandprivatefirmsintheirinvestment

andenvironmentalbehavior,whichwouldgreatlyenhanceourinitialwork.Whileourresultsraisemore

questionsthantheyanswer,theyrepresentafirststepinlinkingafirm’sownershipstatuswith

environmentalbehavior.Ifyou’reinterestedinlearningmore,havethoughtsorsuggestions,feelfreeto

reachout:rsampson@rhsmith.umd.edu

Asker,JFarre-Mensa&ALjungqvist.(2014)“CorporateInvestmentandStockMarketListing:APuzzle?”Reviewof

FinancialStudies(forthcoming).

Bushee,B.(1998)“TheinfluenceofinstitutionalinvestorsonmyopicR&Dinvestmentbehavior,”TheAccounting

ReviewVol.73(3):305-33

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ALUMNISPOTLIGHTALUMNISPOTLIGHT

AnInterviewwithG.NageshRaoMBA'11

ChiefTechnologist&EntrepreneurinResidence

USSmallBusinessAdministration

WrittenByEdwardGoughV,BS’15

CSVC:Youhavealotgoingonrightnow!Tellusaboutwhat’sbeen

happening,andhowyougottowhereyouaretoday.

RAO:IpreviouslyworkedwithstartupsinSiliconValleyandUpstateNY,

bothhardwareandsoftware,andIgainedexperienceworkinginventure

capital,productdesign,andwithvariousotherstartups.Iwasjustanad-

hoc,motivated,jack-of-all-tradeskindofguy,pluggingintovarious

companies,consultingondifferentpathsforgrowthanddevelopmentaswelldesigningIPportfolios.

BecauseoftheworkIhadbeendoing,theSBAheardaboutmeandaskedmetocomeonboard.Ihada

strongunderstandingofhowtoleveragethepotentialforgrowthwithintheSBIRprogramasitrelatesto

engagingwithnewinnovationpipelines.

RecentlyI’vebeentaskedbytheObamaAdministrationtoco-leadeffortsaroundtheSmallBusiness

InnovationResearch(SBIR)programattheSmallBusinessAdministration.It’sa$2.5Billionprogram

annuallythatrunsacross11differentmajorfederalagencies.Theprogramisresponsibleforhelpinginitiate

companieslikeQualcomm,Symantec,IntuitiveSurgical,iRobot,etc.,andalsojumpstartingindustrieslike

nextgenerationbiotechnologyand3DPrinting.Eachofthe11agenciesallocatesfundstowardsmall

businessdevelopmentinvolvedincuttingedgeresearchanddevelopment(allscienceandtechnologically

driven);themoneycollectedisakintoseedfundingthatanearlystagestartupwouldreceive.

PhaseIgrantsareupto$150,000andPhaseIIgrantsareupto$1Million,andthere’sanemphasison

commercializingR&D.Wefillavoidthatventurecapitalfundingwon’tnecessarilytouch.Wearereally

focusedonhighrisk,highrewardtechnology.Thepointis,weinvestinalotofimportantresearch,butit’sat

least5to10yearsaheadofitstime.OneofthereasonswhySBIRissoimportantisbecausewede-riska

lotoftechnologicalinnovations,andmakeitsavoryfortheprivatemarkettoparticipatewhenitreachesan

appropriatetechnologyreadinessandlevelofinterest.

CSVC:WhatisthebiggestdifferencebetweenaninvestmentfromtheSBIRandinvestmentfromaVenture

Capitalfirm?

RAO:Wedon’ttakeanyequitystakeandthesmallbusinessfirmgetstokeeptheintellectualpropertythey

developedasaresultoftheresearchanddevelopment.WhenIcameonboardayearago,Ilookedatthe

SBIRasanAngelfund,butwewereworkingwithasourceofnon-dilutedcapital.Recipientsjusthaveto

showresultsandbehonestabouthowtheyusethemoney.

CSVC:Whatareyourfavoriteorganizationstoworkwith?

RAO:OneofmyultimatefavoritesisLAUNCH,whichisapublic-privatecollaborationbetweenNASA,

USAID,DepartmentofStateandNike.LAUNCHservesasapurposedrivenacceleratorplatformfor

visionaryandimpactfulideasonaglobalscale.They’reanorganizationofmoversandshakerswhoare

dedicatedtofindinginnovationsthatwillchangetheworld.OurSBIRprogramfundedseveralventuresthat

arenowpartofLAUNCHand,forme,that’sbeenavalidatingpointfortheimpactofSBIR’sinvestments.

CSVC:WhatdidyougainfromtheMBAprogramatSmiththatisbenefitingyounowinyourwork?

RAO:Ibuiltanincrediblenetworkoffriendsaswellastheencouragementtothinkdifferently.Ilearnedtobe

moreinquisitive,takefewthingsfor“facevalue”andalwaysquestionwhy.

CSVC:DoyouhaveastoryfromyourtimeatSmiththatillustratesthat?

RAO:SmithProfessorofFinanceHalukUnalgaveoneofthebestanalogiesthatIstillusetothisday

regardingriskandrateofreturn.Hesaid,'putyourlifeinariskvs.rateofreturnequationandunderstand

whatyourbetavalueis.'Everyone’slifestartswithabetavalueofone.Ifyouhaveabetavalueofone,you

cantakeonalotofrisk.ForyearsIhavekeptmyownbetalowandtookalotofrisks.

Iplayedmycardswellandhavebenefitedfromahighreturnonthatrisk.Haluksaiditbest,whenyouhave

abetaofoneyoucantakealltheriskyouwant,butwhenyoustarttakingonresponsibilitiesandbringing

otherpeopleintoyourlife,yourbetaincreasesandyourrateofreturnmaygodownbecauseyou’regoingto

belessrisky.Whileyouareyoung,allowyourselftotakeriskandberisky,justbefearless.

NowI’mabitolderandIhaveagirlfriend;she’sawesomeandbringsagreatdealofbalanceand

excitementtomylife.IwouldactuallyamendHaluk’sanalogybecausesheandIsupporteachotherina

waythatallowsustotakemorerisk.Whenyouhaveagreat“partnerincrime”,youcanstilltakeriskybets

(abitmorecalculatedandpragmatic)andhavesomeonetohelpmakethedowntimeseasier.

CSVC:What’syouradviceforcurrentMBAstudentswhowanttodotheirpartincreatingasustainable

future?

RAO:Befearless.Befearless,andtakethebullbythehorn.That’smybiggestpieceofadvice.Besmart;

bepragmaticandownuptoyourfailuresaswellastoyoursuccesses.That’sonethingI’vedonewell:

owninguptomymistakes.Thereisalwaysalessontolearninfailure.Youcanfail,butaslongasdoso

withpurposeandlearnfromit,thenitisworthwhile.

CSVC:What’safunfactthatpeopleprobablydon’tknowaboutyou?

RAO:Iwenttoamilitaryhighschool,andIgraduatedasaFirstLieutenant.Ihadauniform,Ihadasaber,

andIhadanissuedrifle,butitwasn’tfullyoperational.

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FACULTYSPOTLIGHTFACULTYSPOTLIGHT

AnInterviewwithJimSanders,AdjunctFaculty

RobertH.SmithSchoolofBusiness

WrittenByRyanSteinbach

CommunityEngagementManger,CSVC

CSVC:Tellusalittlebitaboutyourself,specificallyhowyoucametobeat

Smith.

SANDERS:Ihavetaughtpart-timeintheMBAprogramfor19years.Rudy

Lamonerecruitedmeaspartoftheteamofpractitionerswhohelpedbuild

theDingmanCenterandtheteachingprogram.Mycareerbeganin

startupswhereIwasCEOforanumberofsoftwarefirms.Ithen

transitionedtoincubatorsandotherprogramsthatcreatestartups.EventuallyIworkedininternational

incubatorsandledaprogramattheWorldBank.Mynextmovefocusedonscalebycreatingincubatorsand

newventureprogramsinlargeFortune100firms.Finally,ImovedtoinvestmentandM&Aforlargefirms.

MylastjobswereDirectorofStrategyandM&AforHoneywellInternationalandHarrisCorporation.

Currently,I’maManagingPartneratanimpactinvestmentandconsultingfirmcalledTheColumbiaGroup.I

workonsocialimpactinvesting,M&AandstartupseedinvestmentinhealthandeducationIT.Thekey

themeinmyjobshasbeencustomerandmarketunderstanding.

CSVC:Whataresomeoftheprojectsyou’reworkingonhereatSmith?

SANDERS:MymajorfocusesattheSmithSchoolnowaretheSocialEntrepreneurshipMBAcourseand

InternationalEntrepreneurshipMBAcourse.

ItypicallyteachtheSocialEntrepreneurshipcoursetwiceayearwithabout30studentsineachclass.

Roughlyathirdarefull-timeMBAs,athirdarepart-timeMBAsandathirdarefromtheSchoolofPublic

Policy,whichIthinkisaveryspecialpartofthiscourse.Thiscoursewasstartedtwelveyearsagobecause

SmithMBANetImpactpetitionedtheDean.TheyessentiallysaidthatSmithwasbehindandsocial

entrepreneurshipwasanimportanttopic.Sincethenabout50venturesfromtheclasshavegoneonto

launch.

I’vetaughttheinternationalentrepreneurshipcourseforfifteenyearsnowanditfocusesoncreatingnew

venturesaroundtheworld.It’sanMBAonlycourseandwetypicallygetthirtystudentswhoareagoodmix

ofpart-timeandfull-time.Thefocusofthiscourseistocreateanewventureinanothercountrywhereyou

havetoaccountfordifferencesinaccesstotalent,culture,regulation,funding,etc.Thevalueofthiscourse

isthatitdealswithmanysocialissuesinadditiontoeconomicissues.Therealityofentrepreneurship

aroundtheworldisthatyouhavetogetthegovernmentandcivilsocietyinvolved.Therehavebeenroughly

70start-upslaunchedafterthiscourseoverthelastfifteenyears.

Ialsosupportindependentstudyprojectsfocusedondevelopingandimplementingsocialventures,andam

currentlyworkingonaSmithcontractforUSAIDtodevelopentrepreneurshipcoursesfordeveloping

countries.Icontinuearesearchprogramonimprovingprocessandmethodologiesforincubatorsand

mergersandacquisitions.IrecentlyledanationalprogramonbestpracticesinM&A,dealingwiththe

challengesinintegrationafteracquisition.

CSVC:WhatinspiredyoutoteachsocialentrepreneurshipattheMBAlevel?

SANDERS:I’vealwaysbeeninterestedindouble-bottomline–doingwellwhiledoinggood.Social

entrepreneurshipgotalotoftractionoutoftechnologyentrepreneursrealizingthattheycoulduse

entrepreneurshiptoachievesocialoutcomes.SoI’vegrownupwiththefield.Rightnow,Iamattractedto

value-basedactivitieswhereIcanmakeadifference.SocialimpactinvestingandMBAteachingbuildson

mypassionforempoweringpeopleusingstakeholderapproaches.

CSVC:WhatothercoursesatSmithwouldyouliketoseeinthesocialvaluecreationspace?

SANDERS:Ithinkwhenyoulookatourpeergrouponcourseworkandpracticumexperiences,wecoulddo

muchmoreinseveralareas.Ithinkthebigtractionisnotclassroomexperiences,butfieldexperiences.I

wouldliketheretobemoreclassroom-to-fieldactivitiesandmorerelationshipswithactorsinthesocial

entrepreneurshipspacesothatstudentshavetheopportunitytogodoit,notjuststudyit.Yes,weneedto

havemorecourses,butyeswealsoneedmoreclassroom-to-fieldactivities.

Anothersignificantinnovationthatweneedmoreofarecross-campuscourses.Thefactthatmysocial

entrepreneurshipcourseiscross-listedwithPublicPolicy,andit’sarequirementinthePublicPolicy

NonprofitManagementtrack,isimportantbecausesocialentrepreneurshipisinherentlycross-disciplinary

andrequiresacombinationofdifferentskillsets.Manystudentsfromotherpartsoftheuniversityalsojoin

thiscourse.IregularlygetstudentsfromtheSchoolofSocialWork,Education,andPublicHealth.Togrow

socialentrepreneurshipwemustembracethatitisinherentlycross-campus.We’vedonethisinthe

bachelor’sprogram,butwe’venotbeeneffectivedoingitatthegraduatelevel.

CSVC:Whatadvicedoyouhaveforstudentsinterestedinsocialentrepreneurship?

SANDERS:Therearetwobasicquestionsinentrepreneurship.1)Whatdoyoucareabout?(Doyoucare

enoughtoputineffortandstaythecourse,2)whatdoyoubringtotheparty?Thismeanswhataboutyour

background,skills,interestsallowyoutoaddvalue.ThechallengeisthataMBAisagenericdegreeand

employersandfunderswantspecialists–peoplewhoknowanindustryorknowaproblem.Sothe

challengeistofindanindustryortopicthatyoucareaboutandtostartinglearningitsoyoucanaddvalue.

It’samistaketosaytheMBAcurriculumisgoingtogiveyouthefocusthatwillmakeyouimmediately

useful.Youhavetofocusonanindustryoratopicarea.

CSVC:Whatisafunfactaboutyourselfthatmostpeopledon’tknow?

SANDERS:Iamserialparentaswellasaserialentrepreneur.AfterreigningtwokidsmywifeandIadopted

alittlegirlfromChinaandwearedoingitagain.

--

JimSanders'SocialEntrepreneurshipcourseisaboutusingentrepreneurialskillstocraftinnovative

responsestosocialproblems.Entrepreneursareparticularlygoodatrecognizingopportunities,exploring

innovativeapproaches,mobilizingresources,managingrisks,andbuildingviableenterprises.Theseskills

arejustasvaluableinthesocialsectorastheyareinbusiness.Socialentrepreneurshipappliestoboth

profitandnon-profitfirmswhohaveprogramsdesignedtocreatesocialvalue.ReadthefullSyllabushere.

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STUDENTSPOTLIGHTSTUDENTSPOTLIGHT

AnInterviewwithKaticaKissMBA‘16

WrittenByRyanSteinbach

CommunityEngagementManger,CSVC

CSVC:Tellusalittlebitaboutyourself.

KISS:WellIgrewupinNewJerseyandamthedaughteroftwoimmigrant

parentsfromHungary.IdidmyundergradatGeorgeWashington

Universitywhichwastheantithesisofthesmall,ruralareawhereIgrew

up.Icreatedmyownmajorfocusedontherelationshipbetween

internationalaffairsandjournalism.Iwasfascinatedbytheideaofcross-

culturalcommunicationsandhowculturesinteract.AfterundergradIdida

FulbrightteachingfellowshipinMadrid,Spain.IhadpreviouslystudiedabroadinSpainandwasparticularly

interestedintheeffectsofimmigrationfromNorthAfricaonSpanishculture.

WhenIcamebacktoWashingtonD.C.,Istartedworkinginthenonprofitspace.Duringmytimeatoneof

thesenonprofits,IndependentSector,Ilearnedabouttheemergingspacebetweenfor-profitsandnon-

profits.Tomethisemergingspacemadesomuchsensebecauseitleveragedtheinspirationandservice

componentofthenonprofitsector,whilerecognizinganeedforsustainablerevenuestreamsandeffective

organization.AfterIndependentSector,Ididanotherbriefstintabroad,workingforQatarUniversityinDoha,

Qatar.Thisexperiencesolidifiedmyinterestineducation,particularlyhighereducation.

NowthatI’mintheSmithschoolMBAprogram,Ifindmyselfputtingallthepiecestogether–global

perspective,workingbetweensectors,andeducation.

CSVC:Howdidyourinternationalexperiencesshapewhereyouarenow?

KISS:Anytimeyouworkorliveabroad,itchallengesyouinwaysyoudidn’tevenknowyoucouldbe

challenged.Onaneverysingledaylevelyouhavetofigureout,“HowdoIopenabankaccountinthe

country?”or“WheredoIbuypaperclips?”nottomentionthemajorculturedifferences.Ilearnedhowto

dealwithuncomfortablesituationsandambiguitywithasmileonmyface.WhenItraveledtoQatar,Iknewa

lotaboutIslamasareligion,butI’dneverlivedintheMuslimorArabworld.Iknewitwasagendered

culture,butIthoughtasawomanifIextendedmyhandtoshakesomebodyelse’s,amanwouldtakeit.

Therewerequiteafewmenwhowouldverypolitelydeclinetoshakemyhand.Thefirsttimethathappened

Iwasshocked,butovertimeIbegantopickuponmoresocialcues.Livinginanothercountrymakesyou

moreself-awareandthinkabouthowyouractionsmightbeinterpreted.

CSVC:WhydidyouchooseanMBAprogram?WhydidyoudecideonSmith’sMBAprogram?

KISS:WhenIdecidedtogobacktoSchoolIdefinitelyconsideredanMPAorMPP.ButwhenIwasat

IndependentSector,Ikeptseeinghowconstrainedthenonprofitsectorwasintheiraccesstocapital.Ifelt

thathavingabusinessdegreewouldgrowmyskillsetandhelpmeapplythoseskillstothenonprofitsector

orsomehybridofthetwo.IfeltlikeanMPPoranMPAwouldkeepmeinthesocialsector,whileanMBA

couldletmeplayinboththefor-profitandnonprofitspace.

AsforwhySmith;theapproachresonateswithme.Smithfocusesonawell-roundedstudentandhasa

prettyintensecorecurriculumwhichIthoughtwasreallyimportant.WhenIcametovisitSmith,Iwasalso

blownawaybythestudents.Theywerecollaborative,interestinganddiverse–allthingsIwantedinan

MBAprogram.TheCenterforSocialValueCreationwasanotherbigdrawforme.Ifeltthatifaschoolwas

willingtoputthiscenterattheforefrontofitsworkthanthisideaofblendingbusinessandsocialchange

wasanimportantpartoftheexperience.

CSVC:SoyoucameintoSmithwithafocusonNonprofitManagement.HowhasyourtimeatSmith

affectedthat?

KISS:FormetheMBAexperiencehasbeenveryreflective.I’veworkedwithpeoplewhohaveverydifferent

goalsinlifeandcareerpathsthey’repursuing.Beinginbusinessschoolhasorientedmythoughttoward,

“maybeIreallywouldwanttobeinaforprofitworld.”AtthispointI’msectoragnostic.IwanttobewhereI

canachievethebiggestimpact.Recently,I’vehonedinoneducation,specificallyeducationtechnology.For

me,EdTechisasweetspotbetweenfor-profitandnonprofit,aswellasmissionandprofit.Itincorporatesa

strategicmarketanalysisoftheeducationalneedsfacingtheUnitedStatesandothercountriesaroundthe

world.Fromthatanalysis,programs,resourcesandproductscanbedevelopedtohelppusheducation

forward.

CSVC:Outsideofclasses,what’sbeenkeepingyoubusy?

KISS:Businessschoolisverybusy.Ididn’trealizehowbusyItwouldbe.Inadditiontoclasses,I’mpretty

involvedwithextracurricularactivities.I’mtheincomingpresidentofNetImpactandontheboardofthe

EmergingMarketsAssociation.Personally,sinceI’vebeenbacktothestatesI’vebeentakingalotoftimeto

beoutsideasmuchaspossible.Wedidn’tgettodothatverymuchinQatarwhereitwassuperhot,dusty

andwindy.I’menjoyingtheseasonsagain,hikingandjustreallyenjoyingtimeoutside.

CSVC:Whatadvicewouldyougivetootherbusinessstudentswhoareinterestedinusingtheircareersto

makeadifference?

WhenIfirststartedmyMBAIdidn’trealizehowreflectivethisentireexperiencewouldbe.Maybeit’sjust

becauseI’mcomingfromthenonprofitspace,butI’mexposedtoawholenewperspectiveonlife.Alotof

myreflectionsofarhasbeenexploringwhatI’mreallyinterestedinandwhatIreallywanttodowithmylife

intheshort-termandlong-term.Myadviceistobereadyforthatbecauseitcanbeaconfusingexperience

andeveryonelandsinadifferentplace.

CSVC:Whatisafunfactaboutyourselfthatmostpeopledon’tknow?

KISS:I’manaspiringchildren’sbookwriter.AfterIdidmyFulbrightinSpain,myfriendandIwentto

Morocco.Onourtripwesawareallycutecatanditinspiredachildren’sbookaboutCarminetheCatwho

livesinNewYork,worksattheairportandaccidentallygetssenttoMorocco.Shemeetsthecatsin

Moroccoandlearnsabouttheworld,butalsomisseshomeandeventuallygetsback.Itwouldbereallyfun

topublishthatoneday.

connectwithus:

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