Tag Archives: kogod school of business

Reporting

Inflation is Down. Why Aren’t Prices?

My article for the Kogod School of Business

Over the past several years, the economy has experienced unprecedented shifts driven by the pandemic, stimulus packages, and changing consumer behaviors. In July, inflation began to cool meaningfully after record increases during the previous two years. This year, the Consumer Price Index climbed 3 percent through June and less than 4 percent through May, after peaking at roughly 9 percent throughout the entire previous year in 2022. Unemployment remains historically low at 3.6 percent, due to robust hiring. Nonetheless, consumers continue to spend at a solid clip.  

There’s a lot to be said about living through a period with the highest inflation in four decades—and more than anything, it has been an ideal experimental setup for economists. While supply- and demand-related drivers frame the typical discussion of inflation, another idea that has gained attention is “greedflation.” Kogod finance professor David Stillerman offered his take on this phenomenon. 

“Inflation has been driven by both supply- and demand-side factors. During the pandemic, plant closures, supply-chain issues, and changes in labor-force participation put upward pressure on costs (and, therefore, prices),” Stillerman says. “This inflationary pressure was sustained or exacerbated by changes in demand for goods and services due to changing consumer preferences and pandemic-related fiscal policy. As supply chain issues resolve and the impact of interest rate hikes is felt, it is natural for inflation to decline.” 

Here’s how greedflation works:  

Inflation first rose because of factors like the pandemic and economic stimulus bills. But companies raised prices more than necessary to net higher profits because consumers no longer had a benchmark for what prices should be. When all prices are rising, consumers lose the sense of “reasonable” prices, creating room for companies to redefine that range. Dismissing greedflation as a “conspiracy theory” obscures the intricate relationships that characterize it.  

Greedflation could reflect corporate leverage and, in that sense, be more of a visible thumb on the scales if we believe corporations are supercharging inflation by increasing prices or not lowering them even as inflation declines.  

The greedflation argument is that higher firm markups (i.e., the ratio of price to marginal cost) have led to a rise in prices.  

“As someone who studies industrial organization, I take very seriously the idea that much of the time, markets are not perfectly competitive and that firms exercise their market power, raising prices and restricting output.”

However, the “greedflation” story suggests that a systematic change—unrelated to demand and marginal costs—occurred in the period following the onset of the pandemic that changed the way firms compete, allowing them to charge even higher prices (and earn higher markups). This could be, for example, that firms began colluding.  

The greedflation theory suggests that large companies can leverage their outsized market power to raise prices more than what should be possible in a truly competitive economy. But in some concentrated markets, that has not happened: hospitals are highly consolidated, yet healthcare prices have risen more slowly than overall inflation throughout the past year. 

In a greedflation scenario, we would expect that markets where prices increased the most also saw significant markup increases. But, recent empirical work and modeling find little relationship between industry-level changes in markups and price changes during the inflationary period. 

The conversation around “greedflation” underscores the intricacy of economic phenomena and the influence of corporate decisions in the broader economy. “In my view, this suggests that there is more going on than the ‘greedflation’ story implies,” says Stillerman. 

Reporting

Housing Markets and the Broader Economy

My article for the Kogod School of Business

While the question of whether we will face a recession in 2023 and how bad it may be (terms like “soft landing” and “recalibration” dominate the discourse) has been daunting, economists’ discussion about the housing market and how it is affected by the current monetary policy has not been quite as prominent. Professor Jeff Harris, Kogod’s Gary D. Cohn Goldman Sachs Chair in Finance, recently spoke with WJLA News on the topic.

The housing market, which accounts for nearly 18 percent of the US economy, has recently shown some signs of cooling, with home sales sinking and prices beginning to soften. Yet, this is hardly enough to bring purchase and sale prices to anything even closely approximating the pre-pandemic days, when the market became (artificially, perhaps) red hot, when home prices soared 45 percent from December 2019 to June 2022.

The Fed is attempting to slow inflation via a process that economists call “demand destruction.” By raising interest rates, the central bank makes it more expensive to borrow and spend. As the most interest-sensitive sector of the economy, housing is greatly affected.

Professor Harris was closely involved in the bank bailouts in 2008 as chief economist at the US Commodity Futures Trading Commission–his knowledge of the mortgage markets is vast and practical. “In 2008, and very much similarly now, it was hard to get a handle on how many mortgages are out there. There is not one database that tracks that. Yes, banks have records of when they issue mortgages, but data on prepayment is lacking—for example, this is for people who pay off their mortgage earlier. This is why then and now, it is hard for the central bank to get a clear view of what is happening in that sector of the economy and how the interest rate hikes are affecting it.”

Data from January 5 shows that mortgage rates rose to the highest level since the week that ended December 1, resuming from a slight decrease in December–the average rate on the 30-year fixed rate mortgage was 6.48 percent. It was 6.42 percent as of January 6, 2023, and 3.22 percent a year ago. Freddie Mac estimated that 15 million potential homebuyers have been priced out of the housing market because, for the first time in US history, the average 30-year fixed-rate mortgage rate has more than doubled in a year’s time.

The monthly costs for some home buyers are essentially double what they would have been a year ago. Combine that with the already high prices, and this will keep a lot of people out of the market.”

But another segment that should be discussed is buyers with variable-rate mortgages. “Because there is about a four to five-month period before buyers with variable rate mortgages begin paying the prevailing market interest, we might not have seen the largest impact of the rate hikes on those mortgages until now. These buyers will struggle with contending with these punishing new payments.” And because buyers who take variable interest rate loans are already not as financially stable as those who purchase on a fixed rate, this could be very worrying.

Buyers may not find significant relief anytime soon. Mortgage rates are expected to edge lower this year but remain at about 5 or 6 percent. While demand may have dampened, the supply of homes remains low. “The housing markets vary widely across the country, with some places experiencing mild downturns and some continuing to see price hikes,” says Harris.

You will see some softening in prices for homes that have been sitting on the market for two to three months, but prices are unlikely to return to pre-pandemic levels.”

Harris believes that, in many ways, the worst is over, so to speak–even if the Federal Reserve continues with rate increases, mortgage rates will likely decrease from current levels. Yet, housing affordability is likely to remain low.

Reporting

The Importance of Managerial Humility

My article for the Society of Human Resources Management Magazine

Humility, the great antithesis to ego, might be considered an attribute that subtracts from the elan of leadership. But more and more research is showing the complexity of this trait and how those who espouse it are, in fact, some of the best leaders.

A 2021 study suggested that humility can be a positive trait for leaders, with implications for organizational strategy and performance. The study found that humble executives build integrative teams, promote pay equity among their teams, and establish profitable companies.

Jonathan Finkelstein, CEO and founder of New York City-based Credly, a business of Pearson, says “servant leadership is on the rise, for good reason. Those who lead with humility are great listeners, are committed to the growth and success of others, and are empathetic—not only to their teams but to the needs of their customers.”

What does humility look like in a workplace setting? First, it involves a willingness to know oneself. Humble individuals are aware of human limitations and accept that they have both strengths and weaknesses. Some terms that researchers have used to describe this orientation are “a transcendent self-concept and low self-focus and a lack of superiority or entitlement.” Exhibiting humility as a leader often involves being vulnerable in front of others. For some, this comes naturally; others have to work at it.

The second aspect of humility is keeping an open mind and continuously learning and improving. Humble leaders are open to new information, and they are willing to take contradictory advice or even criticism.

“Doing your job as a leader at any level within an organization means having the humility to surround yourself with people smarter and more capable than yourself, and then listening to what they need and removing obstacles in their way,” Finkelstein says. “It also means continuing to invest in their growth and development so they can serve the organization even better in the future.”

Asking for help is a sign of a secure leader—one who engages everyone to reach goals. Jim Whitehurst, CEO of Raleigh, N.C.-based open-source software maker Red Hat, says, “I found that being very open about the things I did not know actually had the opposite effect than I would have thought. It helped me build credibility.”

Asking for help is effective because it taps into the natural human impulse to cooperate with others.

“As a leader, others look to me for answers,” Finkelstein says. “By acknowledging that I don’t always have them, and that the best answers often come from the members of the team, I try to create a culture that empowers others to contribute their views without fear of personal judgment.”

Reporting

Consumer Behavior During Times of Inflation—And How to Save

My article for the Kogod School of Business

According to Numerator, a white woman between the ages of 55 and 64 years old, married and living in the Southeastern suburbs of the US, is the “typical” US Walmart shopper. This shopper likely has an undergraduate degree and earns about $80,000 annually. She visits Walmart about once per week and picks up roughly 13 products for a total cost of under $60 per trip. This shopper spends about 13.5 percent of her income at Walmart and another 11 percent on Amazon.

The typical Walmart shopper primarily buys groceries, including chicken, fruit, snacks, and sweets, but she supplements her groceries with fast food meals. Her favorite five brands at Walmart are Turkey Knob, Cheetos, Betty Crocker, Dole, and Tyson.

With the price of goods continuously creeping up, consumer behavior has been surprisingly adaptive in response. During times of inflation, it’s expected that consumers will switch to cheaper alternatives and stop spending on items deemed non-essential. More surprising, however, is that higher-income households are on this tightening-of-belts pursuit of value to quite a similar degree as their lower-earning counterparts. In a CNBC report, Walmart CFO John David Rainey said the company is attracting more middle- and high-income shoppers. Seventy-five percent of the company’s market share gains came from customers with an annual household income of $100,000 or more. He told CNBC that inflation-strapped shoppers are trading down in quality and quantity.

So, what does this mean? The Morning Brew defines trading down as the phenomenon when consumers who are facing tough times swap high-priced items for cheaper versions. A similar trend occurred during the 2009-2011 economic downturn. The ratio of high-quality to low-quality goods shifts as recessions ebb. This is also a time when consumers start paying more attention to value, which Kogod professor Ron Hill describes as the idea of how much one must give up to get a specific good.

In addition to its convenience and low prices, Walmart’s recent investments in its digital capabilities are possible lures for upper and middle-class shoppers. Professor Hill suggests that another reason is that the pandemic eroded store loyalty.

People became used to uncertainty about what products they would find in the stores, so loyalty went out the window in favor of finding the best deal—or finding the item at all.”

“Plus, there may also be a ‘kitschiness’ factor at play where it may be kind of cool and quirky for someone who can afford to shop elsewhere to shop at Walmart,” says Hill.

Of course, Hill notes, the best strategy during inflationary times is to look widely for needed items to get the best value. Comparing prices online and planning your list ahead of shopping can offer the most significant time and money savings. And look to the experts like Professor Hill whenever you can for tips and tricks that you may not have tried yet to beat inflation woes!

Reporting

Breaking Down Mental Health Barriers

My article for the Kogod School of Business

Kogod MBA ‘19 alumna MaBinti Yillah is in the process of developing her startup company, Ziefah Health, a mental health platform that connects Muslims with pre-vetted, licensed providers of culturally responsive care.

When someone close to Yillah had a mental health difficulty, they struggled to seek treatment due to stigma and distrust of mental health professionals; Yillah did her own research to find a solution.

“I found that my loved one wasn’t alone. Finding the right mental health professional is a common problem, especially among certain cultures,” explains Yillah. “This led me to create Ziefah Health.”

Twenty-five percent of American Muslims report suffering from mental health challenges, but only 11 percent sought help. Many American Muslims don’t trust therapists because they fear privacy breaches, discrimination, and bias. Culturally, therapy also carries an unwarranted shame in being associated with mental illness instead of being part of a regular health care routine.

Muslims, especially those of the African diaspora, have encountered unique social experiences that someone from the same culture can better understand. Experts find that the most effective care comes from a person patients feel they can trust. Mental health professionals who share a cultural understanding with their patients can provide especially beneficial care. However, Yillah clarifies that there are many layers to someone’s identity, and it’s useful for everyone to see mental health professionals whom they feel they can trust and relate to.

Being Muslim is not just about religious practice—it’s a mindset and way of life. There is a particular family culture that also goes along with being from the African diaspora, independent from being Muslim.”

“Unlike other apps on the market, Ziefah Health recognizes that the one size fits all model doesn’t work—we will ask our clients to share their priorities with us, so we can best serve them,” explains Yillah. “In addition to our app, we plan to host a bi-monthly peer support group to help young Muslims learn and practice wellness tactics to support their life-long mental health journey.”

Yillah worked with General Assembly on the Ziefah Health app. “I’m running two three-month programs to develop, nurture, and convert customers. I’m running a low-tech version of the app to refine the provider matching and vetting process, understand my client’s needs, and ultimately convert these early adapters into customers. It’s a two-sided marketplace model, so I must get the business model right. I’m also shopping for tech partners to integrate with the app. This isn’t a business that’ll be an overnight success—much groundwork is involved!” says Yillah.

Yillah’s Kogod experience equipped her with the confidence and the knowledge required to take on such an important task. She credits Kogod professor Tom Kohn’s entrepreneurship course with teaching her the foundational skills needed to create a business plan and turn it into a reality. “I was familiar with the lean startup method, but I never put it into practice until Tom Kohn’s class. Ash Maurya’s book coined this term and is still a source of inspiration and guidance.”

I received so much advice from classmates and professors like Professor Bill Bellows. He was the one who suggested creating the peer support group with the idea of providing a service but also getting insight into the needs of youth.”

“Dr. Walters-Conte, who works closely with the American University Center for Innovation, also helped me pinpoint the root of the problem I am trying to solve by doing root-cause analysis with me,” says Yillah.

As Yillah continues to work on her startup mental health app, she remembers that the life of an entrepreneur is not always easy, but when her idea comes to fruition and helps create meaningful change in the world, it will be worth the years of hard work.

“The greatest advice I can offer young entrepreneurs and Kogod students is to remain inquisitive—you really don’t know everything. Don’t assume you know what your customers want. Ask your customers many questions and lean on your Kogod network for support and guidance,” says Yillah.

Reporting

Kogod School of Business Alumna Helps Students Gain a Global Business Perspective with Startup Ageovisa

My article for the Kogod School of Business

Founder and CEO of Ageovisa, Samantha Bendt, creates a language learning platform for students who don’t want to take the one-size-fits-all approach.

Recent Kogod graduate Samantha Bendt founded Ageovisa to allow aspiring language learners to learn in the style that works best for them.

“Everyone learns differently, so Ageovisa allows students to choose what they want to learn and how they want to learn,” says Bendt.

Ageovisa offers language learning resources through different learning styles using visual, auditory, and kinesthetic formats to facilitate interactive learning.

“Ageovisa is designed for both beginners and experienced language learners,” says Bendt. “My team and I are language and culture enthusiasts. We love meeting new people from all over the world. We want to provide a more personalized and interconnected experience for learners. Most platforms have a one size fits all approach with limited flexibility for their learners, so our method is meant to be more user-friendly.”

Founder and CEO Bendt launched the Ageovisa platform this past spring using a minimum viable product (MVP) model, which currently offers Spanish vocabulary in all learning styles.

“Next spring, we hope to launch our core development which will include grammar, cultural content, more languages, and more kinesthetic options,” explains Bendt. “We will be announcing the launch of additional features later.”

Bendt is no stranger to language learning courses, having taken Spanish, French, German, Arabic, and Russian courses. Keeping up with her lessons became a real struggle when she realized that all current language learning platforms had a one-size-fits-all approach. This realization was the seed that grew Ageovisa.

While at Kogod, Bendt quickly understood how critical it is for business students and professionals to maintain a global perspective.

I’m grateful for my time at Kogod and the AUCI. The opportunities outside of the classroom were instrumental in my continued passion and entrepreneurial journey.”

SamanthaBendt

Samantha Bendt

Founder and CEO of Ageovisa

Almost immediately after beginning her Kogod journey, Bendt became involved with the Private Equity and Venture Capital Club. Through this, Bendt was introduced to entrepreneurial-related competitions held by Kogod and the AUCI, such as the Venture Capital Investment Competition, the AU Hack-for-a-Change Hackathon, the Kogod Case Competition, and the Startup and Standout Series.

“I participated in all of these competitions, and with my teams’ help and support, we even won first place in a few!” says Bendt.

Now, as an alumna, Bendt remains connected to the AUCI.

The AUCI has been the most influential component of my journey. They provided continuous support and mentorship that was greatly appreciated during times of need.”

A year from now, Bendt hopes to be able to offer additional features, including a mobile app to Ageovisa users—and she couldn’t have gotten this far without the support of fellow entrepreneurs and mentors she met along the way through her involvement with the AUCI and other competitions.

“Never be afraid to ask for help,” advises Bendt. “Entrepreneurship is a journey of learning, usually by trial and error. These experiences make you stronger and more resilient to challenges you may encounter in the future.”

Reporting

Not Too Old For This

My article for the Kogod School of Business

Millions of older Americans have re-entered the workforce in recent months. Nearly 64 percent of adults between the ages of 55 and 64 worked in April, essentially the same rate as in February 2020. That’s a more complete pandemic recovery than among most younger age groups.

Inflation and precipitous rises in the cost of living have forced many professionals to return to work from retirement. Others enjoy the engagement and camaraderie work provides.

Older workers weren’t any more likely than younger workers to leave the labor force early in the pandemic. Still, economists thought aging workers might be slower to return because people in their 50s and 60s typically have a hard time finding jobs than their younger counterparts, primarily due to ageism.

Kogod alumna Beth Finkel State Director of the New York AARP branch has been at the forefront of AARP’s fight at the state and national level for laws and policies that protect older workers from age discrimination.

“A recent AARP New York survey found nearly half of voters 50-plus were subjected to or witnessed at least one type of workplace age discrimination. Twenty percent said they were passed over for a job because of their age, and almost 10 percent said they were laid off or fired due to their age,” says Finkel.

A national AARP poll found 78 percent of workers 50+ report they’ve seen or experienced age discrimination in the workplace—age discrimination against Americans aged 50+ robbed the US economy of $850 billion in 2018 alone.”

Furthermore, those over 45 make up the bulk of the long-term unemployed in America and globally. Hiring managers admit they are reluctant to hire individuals over 40, arguing they probably won’t be a good “fit” or will be unable or unwilling to learn new skills.

A large study of 5,000 workers and managers in seven countries by the nonprofit generation offers some rather grim statistics. Individuals age 45+ make up a high share of the long-term unemployed. Hiring managers have a negative view of 45+ job seekers, even though employers rate highly the job performance of those they hire. Despite national differences, the challenges and experiences of 45+ individuals are global, displaying striking consistency worldwide.

One key insight from the survey is hugely positive, however. Yes, hiring managers express bias against 45+ individuals. Still, those same employers also acknowledge that once they hire people over 45, these workers perform on the job just as well as or even better than their peers who are a decade younger.

Yet still, many workers 45+ simply cannot seem to penetrate a wall of resistance to simple consideration for a job.”

Changes are being made at the state and national levels to assist aging workers in their employment searches and help provide equitable hiring opportunities.

“In New York, the State Senate passed a bill prohibiting employers from requiring or asking for job applicants’ age, birthdate, and graduation dates unless relevant to the job. In Washington, we are urging the US Senate to follow the House by passing the Protect Older Workers Against Discrimination Act. In New York City, we requested to rename its Department for The Aging to something like Boston’s Age Strong,” says Finkel.

As 45+ individuals continue to seek work in a world where higher life expectancies and inadequate savings are pushing up retirement ages, employers and policymakers need to take steps to counter rampant ageism.

“Advocacy with businesses is part of AARP’s ultimate goal—to protect people 45+ from age discrimination,” says Finkel.

“At the end of the day, discrimination of any form is wrong, and multigenerational workforces are proven to be more productive.”

Reporting

A New App Makes Lending to Loved Ones Stress-Free

My article for the Kogod School of Business

Kogod School of Business alum Kaben Clauson has a new entrepreneurial venture—an innovative family-and-friends lending platform.

KabenClausonBanner

Kogod School of Business alum and cofounder of Pigeon Loans Kaben Clauson.

Kogod School of Business alum Kaben Clauson has a new entrepreneurial venture. This innovative family-and-friends lending platform takes the awkwardness (and risk) out of an all-too-familiar (and familial) financial relationship.

Pigeon Loans, founded by Clauson and Brian Bristol, makes lending to one’s loved ones a financially seamless process by incorporating a contract, a payment plan, and friendly reminders in a one-stop-shop platform. The Miami, Florida-based startup has already raised $2.5 million from Y Combinator, FundersClub, Kleiner Perkins Scout Fund, Sovereign’s Capital, Goodwater Capital, SaxeCap, Pareto Holdings, True Culture Fund, Magic Fund, Legal Tech Fund, Mentors Fund, Ascendo Venture Capital, and various angel investors.

We asked Kaben about this exciting new platform and to share tips for other young entrepreneurs like him.

Kogod School of Business: Can you tell us about Pigeon Loans?

Kaben Clausen: Pigeon Loans is a tool that makes it easy for friends and family to lend to one another. We built this software to remove the awkwardness that often comes with these types of loans.

We are bridging the gap between money and relationships. Our platform makes it easier to raise funds needed to start a business, go back to school, or pay for emergencies.”

As income inequality has skyrocketed across America, we’re seeing an exploding need for tools that allow people to help one another financially.

In the US, roughly $200B in personal loans are made each year—often through a ‘handshake’ deal that can go badly financially and interpersonally. Through Pigeon Loans, any two people can easily create a loan agreement that includes a contract, payment plan, and friendly reminders. Getting financial help from those who care for you most is the best path for many to get low-interest rates on favorable terms. We make this easy for the world.

How did you come up with the idea for this venture?

As the founders of Pigeon Loans, Brian Bristol and I have first-hand experience with the subject of borrowing and lending from those we know.

During the 2008 financial crisis, I witnessed the power of the community coming together to help each other. My family was in a tough spot, and loans were the only way out. Even back then, I realized that it made little sense that most of these loans were done without the help of any software.

As the pandemic began to rage, I saw many friends in need. It’s the balance between wanting to help and keeping the relationship from getting awkward.”

No one wants to send or receive those monthly payment reminders among friends.

Can you please share how your time at Kogod shaped your entrepreneurial journey?

Kogod is the place where I finally decided that I wanted to be an entrepreneur. I had no idea how I would do it or even what I would build. The classes I took highlighted real problems in the world. I was motivated by the fact that so much of our planet is still broken and that there was no guarantee any other person would fix them.

The best thing about Kogod is the students—everyone brings a unique global perspective. I was in the minority as an American-born citizen in many of my classes.  A global perspective is key because so much of our worldview gets stuck in the country we were raised in. This global atmosphere provides a deeper context for thinking about the problems that technology can solve.

What advice do you have for budding entrepreneurs?

I know how hard it can be to break into the technology industry, especially as someone who didn’t have connections in the space from the start. Making that ‘breakthrough’ a little easier for the next generation of Kogod students is a goal of mine.

My main advice for budding entrepreneurs is twofold. First, have a ‘learner’s mindset’ about everything.

Reporting

Get the 411 on Sustainability in Business

My article for the Kogod School of Business

Kogod School of Business alum Nat Zorach is one of few people with an MBA who is just as comfortable in work boots on a job site as he is in dress shoes in the boardroom.

“Whether we’re talking about the literal nuts and bolts of the work we are doing or about high-minded academic notions, I am prepared to jump right in,” says Zorach, a decarbonization and sustainability leader.

We chatted with Zorach to learn more about how his MBA degree from Kogod lends itself to his current career in sustainability and how other Eagles who are sustainability-minded can follow in his footsteps—whether they’re wearing work boots, dress shoes, or both like Zorach.

On the day to day, I figure out solutions to develop new programs to decarbonize the built environment, borrowing from my city planning experience, construction experience, and general affinity for working with diverse, clever humans to get stuff done!”

nat

In what ways is your career focused on sustainability in business?

“I manage performance reporting, analysis, process improvement, and program development for the flagship energy efficiency program of the Potomac Electric Power Company, more commonly known as Pepco, a subsidiary of Exelon. Across several jurisdictions from southern New Jersey to Maryland and DC, we spend over $100 million each year on energy efficiency programs, ranging from selling individual light bulbs to large industrial combined heat and power turbine installations. Exelon is committed to decarbonizing the power grid, and Maryland has some laudable and aggressive climate targets—we are working with the state and local jurisdictions to implement them,” explains Zorach.

 How is your company committed to sustainability?

“Exelon went from fighting sustainability efforts tooth and nail to figuring out how to work with the movement toward decarbonization. This was easier given that the company managed—until spinning off the subsidiary, Constellation, earlier this year—the country’s largest fleet of nuclear power plants when a lot of power generation is still fossil fuels,” says Zorach.

What advice do you have for students looking to work in the sustainability field?

“I got my job because of my unique mix of expertise—literacy in energy and utilities, extensive track record in community and economic development, a background in finance, and a strong understanding of numbers and quantitative analysis—plus a smattering of policy work and hands-on experience with the construction and the implementation side of things,” says Zorach.

My advice is to show up as much as possible, ask good and challenging questions of people around you, and support those people, too.”

“The climate crisis and the erosion of democratic rights around the globe mean that we must hold people in power accountable—while supporting innovative ideas for sustainability and equity,” explains Zorach. “A dear friend of mine once said, ‘it’s not enough for us to simply say ‘no’ to something; we must say ‘yes’ to something else.’ I think about this pretty much every day because I want to be a good critic while being an even better advocate.”

“Networking is also key, but it’s about quality networking. If someone gives you their card, reach out to them. If you give someone your card, make sure you have something to say. People generally reward honesty, curiosity, and integrity—quest after those things, and don’t be disingenuous,” advises Zorach.

Zorach’s diversity of skills shows how education combined with a willingness to get your hands (and boots) dirty is vital for success in the ever-changing and advancing field of sustainability.

Reporting

Kogod’s Race in the Marketplace Course Is Invaluable for All AU Students

My article for the Kogod School of Business

Marketing and culture influence each other in highly sophisticated ways: marketing is shaped and, in turn, shapes culture. Companies court specific customer groups, and often, progressive ideas take a backseat to profit.  While it is no secret that the advertising industry has a sticky (or sticker!) problem with race, it is the marketplace writ large that is the topic of conversation in Professor Sonya Grier’s Race in the Marketplace course at the Kogod School of Business.

The class is centered on the theme that race plays a key role in the functioning of consumption markets worldwide. The course also closely examines how institutionalized racism and structural inequalities shape marketing practice, consumer behavior, and marketplace outcomes. Finally, the course content asks students to reflect on how marketing can be used to support more racially equitable marketplaces.

The class is a first of its kind nationally and a great draw in Kogod because of its very salient, real-world orientation. “This is one of the only classes where I felt that we applied realistic concepts every week. I came out of each class with a new concrete way to look at race in the marketplace,” said Kogod senior Yves-Myriam Millien. Kogod student Paige Kaiser remarked similarly on the uniqueness of Professor Grier’s class.

“This class has been eye-opening. There’s no other class like it at AU. Learning about my marketing specialization through the lens of critical race issues widened my perspective on the intersection of race and the marketplace today. It taught me skills about navigating these relations that will be valuable in my future career.”

Students in the class were surprised that they had never been exposed to the issues before. “Race is such a critical part of marketing, and I was shocked when I didn’t encounter it more in my earlier marketing coursework. It felt natural to have a class on it,” remarked Millien.

Grier has coedited a free textbook for the class titled Race in the Marketplace: Crossing Critical Boundaries, which is the first of its kind to explore the topic. Students come away learning how group-level targeting can exploit marginalized communities. They learn about the impact of racial disparities in labor markets, wealth accumulation, economic mobility, and public health. For example, a case study entitled Alisha in Obesity Land explores ways of encouraging elementary school students to consume healthier foods.

The class also teaches students to recognize racially-targeted ads more often in the world and to be more critical of the messages they promote and how they may perpetuate racial or cultural stereotypes.

“I learned how to critique business practices and be confident in that critique—how to have the vocabulary and understand the reality of what kind of change we could ask for from businesses.”

“The Race in the Marketplace course taught students about marketers’ role in combating inequitable effects in the marketplace on marginalized groups,” said Kaiser.

“This class has taught me about the reality of how companies can be incentivized to change, as well as different strategies to make businesses more inclusive,” added Hayes.

“Now more than ever, the industry is moving towards increased corporate social responsibility and recognizing the role marketers play in promoting equity in the marketplace. This class prepares students for just that,” said Kaiser. “By providing a foundation of racialization implications in the marketplace and discussing tools and tactics to combat them, students will leave Professor Grier’s class with a better understanding of how to promote equitable business practices and why it is their responsibility to do so.”

At the Kogod School of Business, our students use their education to create meaningful change in the world. Professor Grier’s Race in the Marketplace course is an absolute must-take for all looking to contribute to a more equitable market.