"If you are white and set out to get financing for an entrepreneurial venture, it might be a tough journey," said study co-author Glenn Christensen, an associate professor of marketing at Brigham Young University. "But, generally speaking, you would experience fewer obstacles and find more help along the way than if you came from an African-American or Hispanic background."
"While racial and ethnic minorities have made significant progress in terms of race relations over the past several decades, the harsh reality is that there still are remnants of discrimination in society," said co-author Jerome Williams, director of the Center of Urban Entrepreneurship and Economic Development at Rutgers Business School. "It is appropriate to continue asking the question, 'Is the glass half empty, or is the glass half full?' in terms of progress being made in eradicating discrimination in the marketplace."
Nearly five years after the Great Recession officially ended, the struggles and dampened expectations of young college graduates have become a fixture of American politics and even popular culture. But amid all the focus on the difficulties of college-educated millennials, one facet of this upheaval has remained largely unexplored: the continued significance of race.
As a new crop of college graduates joins the American workforce, unemployment rates among minorities with degrees remain distinctly elevated and their economic prospects disproportionately dimmed, a new report (PDF) released by the Center for Economic and Policy Research has found.
In 2013, the most recent period for which unemployment data are available by both race and educational attainment, 12.4 percent of black college graduates between the ages of 22 and 27 were unemployed. For all college graduates in the same age range, the unemployment rate stood at just 5.6 percent. The figures point to an ugly truth: Black college graduates are more than twice as likely to be unemployed.
"This study—its findings, as terrible as they are—honestly should not come as a shock to anyone who is willing to face the truth about employment and unemployment in the United States," said Nancy DiTomaso, a professor at Rutgers Business School who studies inequality and organizational diversity.
The national debate over whether to raise minimum wages has stirred interest in where American companies stand on the issue. That curiosity perhaps is most intensely targeted at feel-good companies, which pride themselves on progressive practices. Do those companies match their upbeat branding with living wages?
"Companies that wish to project a progressive image for their brands for being environmentally friendly or supporting organic farming represent an equally important social barometer for pay equity," says Michael Santoro, professor of business ethics at Rutgers Business School.
"Can brands that cater to conscious consumerism extend their value proposition to help workers earn a living wage?" asks Santoro, who wrote about the widening disconnect between Main Street and Wall Street in his book, "Wall Street Values." He added, "The days of grooving to your iPhone and not caring that a worker manufactured that phone in a substandard factory are over."
Avolution, a leader in Enterprise Architecture software and solutions, today announced that Rutgers Business School has become the latest institution to join its academic partner program. Recently ranked as #10 on a list of the top 13 business schools in the USA, Rutgers Business School - Newark and New Brunswick, will be enhancing the Enterprise Information Architecture content of its Business Analytics and Information Technology (BAIT) curriculum with the help of Avolution’s enterprise modeling and analysis tool, ABACUS®.
Enterprise Information Architecture defines the way in which responsibility for information storage and processing is distributed throughout an organization, and understanding this topic is critical when making additions or changes to an organization's computing resources. The Rutgers Business School (RBS) BAIT curriculum introduces students to the techniques and tools for integrating enterprise applications, data, technologies and infrastructure with business capabilities and processes. Course content covers methods and models for Enterprise Information Architecture (EIA); reference architecture, open group architecture, service-oriented architecture, operational models, viewing information as a service, and conceptual frameworks such as TOGAF and Zachman.
Kevin Dowlin, Executive Director of RBS’s Office of Technology and Instructional Services, commented, “This new focus on Enterprise Architecture addresses the importance now being placed on IT Strategic Planning within major corporations today. RBS students will gain an understanding of the best-practice techniques that can be employed to align a corporation’s IT needs and business goals, as well as hands-on experience in how leading enterprise analysis and modeling tools, such as ABACUS, facilitate this.”
So why the switch from informative, catchy slogans to things that are so hard to define? Criticized for selling fast food, companies reckon they can’t get in trouble for celebrating their customers’ inherent awesomeness. “Fast food companies have taken such a big hit, getting criticized for their contribution to the obesity problem. … ‘Be Your Way' is suggesting that it’s an individual choice to eat [at Burger King] and people can make their own choices,” says Jerome Williams, who holds the Prudential Chair in Business in the Department of Marketing at Rutgers Business School and who has studied consumer behavior and marketing. Burger King and its competitors are in a difficult advertising spot: They’re viewed as selling an unhealthy product, but they know people love that unhealthy product. So instead of touting how great their food is, they’re empowering customers to feel good about themselves when they order it.
While few people agree on just about any aspect of Jill Abramson’s dismissal as executive editor of the New York Times (NYT), there’s general consensus on this: The company didn’t handle it well.
What could the Times have done better? Here are some ideas:
“When you’re working in upper management, it’s not just about dealing with subordinates, but also peers, and in some cases you need to learn how to temper your style,” said Ray Henson, a management consultant who teaches executive and leadership strategy in the Department of Management & Global Business at Rutgers Business School. “People who have been successful don’t see a reason to change.”
"Investment advisors are realizing that it's very difficult to outperform a benchmark, but they can consistently add value by minimizing taxes," says John Longo, who teaches at Rutgers Business School and is the chief investment officer of MDE Group, an investment advisory firm in Morristown, N.J. "Taxes are the largest transaction costs investors face."
At the annual healthcare symposium sponsored by Rutgers Business School's Blanche and Irwin Lerner Center for the Study of Pharmaceutical Management Issues, many classroom lectures and lessons became a little more meaningful.
"We hear about the theory, the legislation, the big picture," said Michael Kwatkoski, an MBA student in the Pharmaceutical Management Program. "Something like this puts in all in practical perspective."
The April 30 symposium, "Global Challenges to Pharmaceutical Reimbursements," provided a big-picture, real-world look at the federal government's efforts to reduce healthcare costs while increasing access to medical care. Jonathan Blum, principal deputy administrator at the Centers for Medicare and Medicaid Services, gave the keynote address. Gail Wilensky, a senior fellow from Project Hope, also spoke about the Affordable Care Act.
In a panel discussion moderated by Richard Bagger, a senior vice president at Celgene, a trio of pharmaceutical executives shared their insights about how the new focus on pricing and affordability is impacting the industry's business model – namely the strategy of how companies decide what new medicines to spend time and money developing and taking to market.
The annual symposium is the Lerner Center's signature event, reinforcing its role as a source of thought leadership on issues impacting the pharmaceutical and healthcare businesses. This year's symposium attracted a crowd of more than 70 students, alumni, industry professionals, corporate supporters and media.
In his opening remarks, Professor Mahmud Hassan, the center's director, highlighted some of the strengths of the Rutgers MBA Pharmaceutical Management Program – including the high percentage of graduates who are employed by the industry after completing their MBAs – and how the program benefits from the presence of the 10-year-old Lerner Center.
Hassan said the goal of the symposium was to produce a "meaningful dialogue" relevant to the growth of the biopharmaceutical industry.
Kwatkoski, who is studying pharmaceutical management and marketing, sat through the three-hour event, absorbing the information and insights. "I enjoyed hearing the perspective of people who have worked in pharma for so many years," he said.
Javiar Rodriguez, a former pharmacist turned MBA student, also said the symposium enriched his studies with practical insights.
"These events bring the real world to us," Rodriguez said. "It validates what we're learning."
“Most traditional supermarkets stay within a geographical area for distribution, advertising, labor and management,” Kalan said. “Whole Foods focuses on a niche market, on more of a demographic that is attracted to their offering of organic and natural foods and items. It is more of an upscale middle class demographic — those that are willing to pay a little more for a higher quality product and unique services. Metuchen is a similar type of community.”
Too many people think today’s “de facto” segregation in metro areas is the result of personal preferences expressed by individuals, when the fact is that public policy has created the conditions we live with today. In fact, I see the demise of Jim Crow through the Civil Rights Act and the Voting Rights Act corresponding with the immediate rise of an insidious, “non-racist” racism that shapes our metros today. Our metro areas have never dealt with this.
In the aftermath of the Donald Sterling controversy, the Atlantic’s Ta-Nehisi Coates posted an on-spot critique of how racism is viewed and how racism is really working in today’s society. Coates describes how “elegant racism”, that insidious force, shapes where we live, what jobs are available to us, how we’re educated, and who is incarcerated and who isn’t.
This position is further buffeted by research done by Nancy DiTomaso, a business professor at Rutgers University in New Jersey. In her book, The American Non-Dilemma: Racial Inequality Without Racism, she says this:
“Because whites disproportionately hold jobs with more authority, higher pay, more opportunities for skill development and training, and more links to other jobs, they can benefit from racial inequality without being racists and without discriminating against blacks and other nonwhites. In fact, I argue that the ultimate white privilege is the privilege not to be racist and still benefit from racial inequality.”
Marisa Blackwell founded Cravings from her home in 2008, now operating from a modest space on Halsey Street.
At first she used her home and “borrowed” commercial kitchens as she gained her earliest clients, including Rutgers. For nearly six years, she has catered for Rutgers Business School’s Executive MBA program under a weekly, 150-person assignment that spans about nine months annually.
Cravings has operated at Halsey and Linden streets since 2010, thanks largely to some help from real estate investor and philanthropist Paul Profeta. With a zero-interest loan from the Profeta Urban Investment Foundation and guidance from Rutgers Business School, Blackwell was able to renovate the space and set up shop in one of the city’s main corridors alongside Broad Street.
CPA Australia recently hosted the inaugural Evolution of Auditing Forum where Professor Miklos Vasarhelyi, Department of Accounting & Information Systems of Rutgers Business School in New Jersey, inventor of continuous auditing technology and a pioneer in advanced data analytics, evoked Steve Jobs' radical approach to consumer electronics as an analogy for the auditing profession - "how can we make auditing something people use twice a day - like toothpaste." His challenge was clear - "how can we simplify our messaging to equate to the ethos of our customers 'being able to do everything in three clicks or less."'
This is not rhetoric common in the accounting profession, but it is this kind of disruptive thinking that is required to address a potential crisis of relevance and to meet a rapidly mounting set of challenges facing capital markets.
Five ways to reopen lines of communication
Interview by David Brancaccio
Monday, April 28, 2014 - 05:08
Research by Daniel Z. Levin, professor of management and global business at Rutgers Business School - Newark and New Brunswick, was cited by NPR Marketlace in an interview by David Brancaccio with Adam Grant, professor of management at the Wharton School at the University of Pennsylvania. Levin's paper, "The Power of Reconnection — How Dormant Ties Can Surprise You," was published by MIT Sloan.
In an effort to shed light on one of the most under-publicized Latino ethnic stories in the Garden State, organizers throughout New Jersey conducted the first binational, Mexican-American summit in New Jersey on Saturday.
The one-day conference brought together a wide cast of U.S. and Mexican federal and state experts in health, immigration, education, commerce, politics and the U.S. Census. The event took place at the Rutgers Business School’s new, eye-catching, glass-enclosed, six-story facility on the Livingston Campus in Piscataway. The building, which was designed by Mexican architect Enrique Norten, includes a 440-seat theater-like auditorium where the conference was held.
1. Is entrepreneurship an official track or concentration? A school that has entrepreneurship as a designated area of study may treat this area of business more seriously than schools that don't. "That in it of itself says there's some commitment by the school in this area,” says Jeffrey Robinson, the academic director for the Center of Urban Entrepreneurship and Economic Development at Rutgers, the State University of New Jersey.
At the business school, MBA students can select entrepreneurship as a concentration and take required courses as well as electives such as Technology Ventures and Social Entrepreneurship.
Robinson, whose first business included selling CDs, records and cassette tapes as a Rutgers undergrad, encourages students to also ask if their school of interest has a center for entrepreneurship.
"Centers are good at a few things," he says. "One of them is coordinating activities from inside and outside of the school."
Interestingly, recent studies have found that people are more apt to lie in an e-mail than if they write a note on real paper. Research by a trio of management professors (Liuba Belkin of Lehigh University, Terri Kurtzberg of Rutgers and Charles Naquin of DePaul University) has found that writers who use pen and paper generally convey more honesty than those who send e-mail.
“People feel more justified in acting in self-serving ways when typing as opposed to writing on paper,” Kurtzberg told Fortune. That’s probably because the act of writing on paper seems more permanent even though e-mails “are actually harder to erase or contain,” she adds.
Data has emerged as an indispensable resource for government, academia, business, and civil society. To unlock its true potential, data must be open: interoperable, machine-readable, and available for all. The U.S. government is poised to transform its spending information into open data.
Congressional legislation like the Digital Accountability and Transparency Act, executive actions like President Obama's Open Data Policy, and leadership by the Government Accountability and Transparency Board are coming together around a common, transforming goal. These policy changes are driving the comprehensive standardization and publication of the government's spending information.
This inaugural Data Transparency Summit, April 29, will convene leaders from Congress and the executive branch to explore the transformation. Hosted by the Data Transparency Coalition and presented by PwC, with the Information Technology Industry Council as a special partner, the summit will work toward a common vision for implementing the DATA Act and achieving full transparency across all domains of federal spending data.
"If we as a nation want to make progress on racial equality, we need to change the way we think about affirmative action. The real issue this country must wrestle with today is not whether minorities should get preferences when it comes to accessing education or jobs, but whether members of the majority should stop getting preferences. As Sotomayor explained in her dissent, whites were overrepresented in college admissions relative to their proportion in the population until colleges began adopting race-sensitive admissions policies. It was only after the introduction of these policies that the student bodies at our nation's colleges have begun to resemble the demographics of our country — and there's still a long way to go."
As marketers continue to collect huge amounts of personal data to investigate further into consumer habits and behaviour, concerns over privacy has soared.
Hui Xiong, an associate professor of management science and information systems at Rutgers Business School, New Jersey, claims that the collection of data is just technology. It's how companies choose to analyse the data is when ethics are questioned. His views were highlighted in an article titled, "The Ethics of Big Data", which was published by Forbes journalist Ellen Rooney Martin on 27th March 2014. Hui Xiong's solution for collecting and analysing data ethically, is for businesses to create algorithms that identify patterns, whilst protecting individual identities. He says, "If data shows 50 people following a specific pattern, stop there and act on that data rather mining further and potentially exposing individual behaviour." Outsource Sydney, agree that this will be an effective method that consumers will feel comfortable with.
When it comes to business students and cheating, it appears that everything from plagiarism to using crib notes during exams is in a bull market, says an expert in academic integrity.
Donald McCabe, a management and global business professor at Rutgers University in New Brunswick, N.J., is leading a follow-up study of cheating by university business students that he expects will show even more academic dishonesty than was revealed in the first survey.
The first study (Academic Dishonesty in Graduate Business Programs), surveyed more than 5,000 business students at 32 U.S. and Canadian colleges and universities between 2002 and 2004. It found that 56 per cent of the graduate business students admitted to some form of cheating, compared with 47 per cent of non-business students.
“Some say cheating has gone down slightly. Don’t believe it. Students are doing it more but they don’t consider it cheating. You don’t have to look that hard to find cheating,” Dr. McCabe says.
Minority business accelerators have launched in a handful of metropolitan areas in recent years as local businesses, chambers of commerce and economic development groups work to create more jobs and improve the quality of life in their regions. The Cincinnati accelerator, created by the Cincinnati USA Regional Chamber in 2003, has inspired officials and business people in the Greenville, S.C.; Charlotte, N.C., and Newark, N.J. areas to start similar programs.
A key goal of the accelerators is to help minority owned-companies win contracts with large companies.
Mentors at the accelerators act as advisers, meeting with company owners, helping them improve operations and build strategies. They also connect owners with big customers.
Local chambers of commerce and economic development agencies have launched accelerators to help minority businesses create jobs. Officials say the inability of minority companies to expand holds back a region’s economic growth.
“Look at the number of minority business enterprises and how many are able to build jobs. It’s grossly disproportionate from their majority counterparts,” says Nika White, vice president of diversity and inclusion at the Greenville Chamber of Commerce.
One reason for the disparity is that a small company may not have the infrastructure, such as computer systems, and the experience to operate on the level needed to fulfill a big contract, says Jeffrey Robinson, a professor of management and entrepreneurship at Rutgers University. He is working on the Newark accelerator.
“There’s a leap you have to take from the five-person company to a couple hundred, to being a multimillion-dollar company. You can’t run them the same way,” Robinson says.
The average New Jersey worker needs to work 121 years to match the compensation that the average New Jersey CEO makes in one.
That’s according to an AFL-CIO report released Tuesday, showing the Garden State’s top executives make on average $5.7 million. By comparison, the rank and file make on average $46,825.
“What these figures show is a recovery that is only rewarding the very rich at the expense of everyone else,” said Charles Wowkanech, president of the New Jersey State AFL-CIO. “The middle class is disappearing, and it’s because corporate profits are going into the hands of a very limited few.”
Michael Santoro, a professor of business ethics at Rutgers Business School in Newark and New Brunswick, said inequality is unavoidable and executives should be rewarded for building wealth and creating jobs.
But the social contract has gotten messy. CEOs have been rewarded with big pay days when their companies have created jobs only modestly, and, in some cases, performed poorly.
“I prefer to think of the problem of executive pay from an ethical point of view. (It) is less what they are being paid than what they are being paid for,” Santoro said.
On March 27, 2014 Scarlet Startups, a Meet-up focused on the entrepreneurial alumni and student community of Rutgers University, in partnership with Collective Entrepreneurs Organiztion, a Rutgers student organization focused on entrepreneurship, hosted a panel discussion entitled “From Rutgers to Founders”.
Held at Rutgers Business School in Newark New Jersey, two Rutgers entrepreneur alumni discussed “their work, their experience as entrepreneurs, and how they got to where they are." They were joined by a third panelist representing the New Jersey Economic Development Agency (NJEDA), a quasi-government agency that provides financial assistant to New Jersey small businesses.
Moderator Alfred Blake, Assistant Director of Undergraduate Entrepreneurship Programs at Rutgers Business School, interweaved the entrepreneur discussion with information about financial resources for startups provided by the NJEDA panel representative.
It’s official: the University of Alabama is on the record supporting racial integration – in the year 2014.
Last week Alabama’s Student Senate passed a resolution supporting the complete integration of Greek life at the university. The renewed conversation about race at the historically troubled campus began after a black female student with a 4.3 GPA was denied by all 16 of the school’s sororities. An earlier resolution supporting racial integration had failed by a wide margin.
Public pressure to respond to racism may be greater now than it was in 1963, when Alabama Governor George Wallace stood in the doorway of the school’s auditorium to prevent two black students from registering for classes. But in a practical sense, self-imposed segregation is still commonplace on college campuses and throughout American life. Malicious or not, it helps contribute to racial economic inequality.
Rutgers University Professor Nancy DiTomaso describes this system of voluntary segregation, which emerged since the 1960s, in “The American Non-Dilemma: Racial Inequality Without Racism.” Although de jure (“by law”) segregation is now illegal, de facto (“in fact”) segregation is still a reality. This is true for Greek organizations, which are often nominally integrated but severely homogenous. But de facto segregation extends to all parts of American life. Entire colleges, grade schools, churches and neighborhoods are separated along racial lines, producing distinct social networks in white communities and in communities of color.
This self-segregation causes inequality to reproduce itself. As DiTomaso has written, access to opportunity depends in part on the color of your skin:
Help is typically reserved for people who are “like me”: the people who live in my neighborhood, those who attend my church or school or those with whom I have worked in the past. It is only natural that when there are jobs to be had, people who know about them will tell the people who are close to them, those with whom they identify, and those who at some point can reciprocate the favor.
Wawa’s business model embraced evolution to become a major employer and economic machine in South Jersey and has expanded its reach into more markets with more products.
“They’ve really made themselves an important player in a lot of the communities here,” he said.
Convenience stores are much different than traditional, larger-format food stores, he said. This makes location critical for such stores, and Wawa clearly prioritizes this aspect.
“They’ll spend a lot of energy identifying locations that are along good traffic routes,” Kalan said. “Convenience is its own benefit for consumers. Wawa’s not going to compete on price, although they are very competitive in the gasoline market. Price is not where you compete in that sector, but on convenience, location, hours and the array of products offered.”
Raymond Rossi, an instructor on the faculty of Management and Global Business who has overseen the competition since 2011, said the types of businesses that made it to the final round of this year's competition represented a sea change over last year.
"We went from one extreme to the other," Rossi said, noting the absence of apps and Internet-focused business plans.
"This year, we had a group of students who were very passionate," he said. "They showed an enormous amount of knowledge, and they presented very viable business models."
The two top winners, both Rutgers Flex MBA students, started companies that provide traditional services. Brian Bergen, owner of interior landscaping company, won the $20,000 first-place prize. Paula Zwiren, president of Zwiren Title Agency, received $15,000 for second place.
Sarah Blessing, who graduated from the Rutgers Flex MBA Program in January, came up with the idea for TRAINgle, which is developing a fitness product with some flair. Her team, which includes Flex MBA students Aamir Khan and Leann Cosley-Richardson and recent MBA grad Joanna Trzaska, won the $10,000 third-place prize.
Around the world there’s a gradual but fundamental shift in the role auditors are playing for their corporate clients. More and more they are being asked to peer through the raw numbers and uncover insights into how a company is being run, its strategy, and the efficiency of its business processes.
Auditors are, of course, still required to perform their foremost statutory role – signing off on the company’s accounts for the past financial year – but corporate clients are increasingly expecting them to do more.
While corporate clients are seeking more from their auditors, the profession is also coming under pressure from investors and governments to pass judgment on the health of a company and its viability.
Auditors can now do so much more than they did in the past, but there are questions on whether audit standards and the financial accounting framework have kept up with the changes. The financial accounting reporting framework was developed in an era when collating and checking data was all done manually.
“It was basically a compromise based on the technology of the time on what you could measure and what you could verify,” says Professor Miklos Vasarhelyi, director of the Accounting Research Center at the Rutgers Business School in the US.
Vasarhelyi says these out-of-date standards are leading to a “bipolar” environment with regard to accounting and auditing. Inside corporations, management can access huge amounts of information. Yet they give only a very narrow set of data to the wider world.
Tesla is appealing New Jersey’s recent ban on direct auto sales that prohibits the electric car company from operating in the state.
“Those who currently have distributorships—and it’s a big and powerful lobby with a huge vested interest in maintaining their position as being the consumer focal point for purchase and servicing of automobiles—they don’t want to see that changed. If Tesla is successful with its new model, it sets up the potential for them to no longer be necessary in the process.”
The Rutgers Institute for Ethical Leadership (IEL) at Rutgers Business School will bring together more than 200 business, academic and government leaders to discuss the need for sustainable business leadership and how ethical, environmental, and social objectives can be built into businesses' core missions and operations.
Register today: The Ethical Environment of Business Sustainability
"A business has a responsibility to reward shareholders while ensuring that the communities in which it operates have the human and natural resources necessary to thrive in the future," said IEL Co-founder James Abruzzo.
Triple Play is a weekly NJBIZ feature that asks top executives in New Jersey to talk about three things related to their industry.
Brenda Hopper is the state director of the New Jersey Small Business Development Centers network, a public, private and educational partnership aimed at helping small business owners and entrepreneurs in the state. The NJSBDC is hosted at Rutgers Business School with headquarters in 1 Washington Park.
We asked Brenda for three ways the SBDC supports businesses in the state:
1) Technology Commercialization Program provides specialized assistance to science-technology companies that want to compete for federal grants.
2) NJSBDC E-Business Program has launched an array of webinars on all sorts of in-demand subjects, including marketing and branding, strategic planning, financial analysis and Sandy assistance, in addition to website development and using the Web to increase sales and marketing.
3) International Trade Specialty Program provides assistance to small business owners who need education about export matters, working closely with the U.S. Foreign Commercial Service, state government and other trade advisory councils to maximize efficiencies and strategic partnerships.