What Does Reward Mean to You?

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Zakary Tormala, Sarah Soule, Francisco Pérez-González, Glenn Carroll and Kristin Laurin |
Illustrations by Anje Jager

Five Stanford Graduate School of Business professors recently shared their insights on the the topic of reward.

Which Matters Most: Intentions or Behavior?

How we decide to reward and punish people is often rooted in our religious beliefs, and whether our faith teaches us to focus on a person’s intentions or behaviors.

— Kristin Laurin, assistant professor of organizational behavior

Being Authentic Pays

Consumers value more highly those products they perceive as being genuine as opposed to mass-produced. Such perceived authenticity can also “buffer businesses against negatives” such as questionable cleanliness.

— Glenn Carroll, the Laurence W. Lane Professor of Organizations and Senior Associate Dean for Academic Affairs

In Defense of Hedging

Hedging has indirect benefits that can increase a firm’s overall value. A company that hedges against bad weather, for example, becomes more financially aggressive, apparently because it doesn’t have to reserve as much money for unpredictable weather events.

— Francisco Pérez-González, assistant professor of finance

It’s Not What You Did But What You Will Do

Framing your support for a person, a restaurant, or a cause in terms of potential as opposed to achievement could make your case more persuasive.

— Zakary Tormala, associate professor of marketing

Shareholder Activism Works

Picketers can hurt a company’s stock price. But less public yet persistent shareholder activism influences companies on social issues, as well.

— Sarah Soule, the Morgridge Professor of Organizational Behavior