1. We recognize that the word “right” is ambiguous and can have a negative interpretation; in this case, we mean people who enthusiastically embrace the Research Affiliates mission and culture.
2. While all the anti-values detract from a healthy culture, blame has attracted attention as a negative force in our industry. Using a cross-sectional approach coupled with qualitative analysis, Hsu et al. (2015) found that a culture of blame in investment organizations is strongly correlated with various undesirable firm attributes that predict poor stakeholder outcomes, including subpar long-term operating performance, low employee engagement, and poor client experience.
3. “Milton Friedman, A Giant Among Economists.” The Economist. November 23, 2006. Archived from the original on February 17, 2008. Retrieved February 20, 2008.
4. Graham et al. (2016) find that among potential leaders, the current CEO (55%), owners (32%), founder (30%), and past CEOs (18%) are identified as responsible for shaping the current culture.
Edmans, Alex. 2011. “Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices.” Journal of Financial Economics, vol. 101 (March):621–640.
Graham, John Robert, Jillian Grennan, Campbell R. Harvey, and Shivaram Rajgopal. 2018. “Corporate Culture: Evidence from the Field.” 27th Annual Conference on Financial Economics and Accounting Paper; Duke I&E Research Paper No. 2016-33; Columbia Business School Research Paper No. 16-49. Available at SSRN.
———. 2016. “Corporate Culture: The Interview Evidence.” Duke I&E Research Paper No. 2016-42; Columbia Business School Research Paper No. 16-70. Available at SSRN.
Guiso, Luigi, Paola Sapienza, and Luigi Zingales. 2015. “The Value of Corporate Culture.” Journal of Financial Economics, vol. 117, no. 1:60–76.
Hsu, Jason, James Ware, and Chuck Heisinger. 2015. “The Folly of Blame: Why Investors Should Care about Their Managers’ Culture.” Journal of Portfolio Management, vol. 41, no. 3 (Spring):23–34.
Lazarus, David. 2018. “Let’s Stop Pretending that Corporations Have Any ‘Values’ Beyond Making Money.” Los Angeles Times (October 9).
Nemeth, Charlan. 1986. “Differential Contributions of Majority and Minority Influence.” Psychological Review, vol. 93, no. 1:23–32.
Sherrerd, Katrina, Jonathan Treussard, and Lillian Wu. 2018. “The Challenges of Diversity Investing.” Research Affiliates Publications (December).
Ware, James, Keith Robinson, and Michael Falk. 2017. Money, Meaning, and Mindsets: Radical Reform for the Investment Industry. Focus Consulting Group.