School Notes: School of Management
May/June 2009

SOM proposes code for institutional investors and proxy services

Proxy voting services advise institutional investors on their relationships with corporations and often advise them on how to vote. But there is no law, regulation, or professional standard that forbids a proxy voting service from recommending a vote in favor of a corporation it works for. Now, the Millstein Center for Corporate Governance is pushing the first industry-wide code of professional conduct for proxy services, which includes a ban on a vote adviser's performing consulting work for any company on which it provides voting recommendations or ratings. "The economic crisis has highlighted as never before that the capital market's health hinges on a reliable, open, and efficient proxy voting system to keep corporate boards accountable," said Ira M. Millstein, senior associate dean for corporate governance at the School of Management. "The time has come for practical fixes." The proxy code is one of several steps the Millstein Center is proposing to boost transparency among institutional investors and proxy services. Other proposals call for institutional investors to disclose how they vote as shareholders of public corporations, what ownership policies they follow, and what resources they put into engagement efforts. Visit mba.yale.edu/news_events/CMS/Articles/6763.shtml for a link to the report.

New program allows students to earn JD/MBA in three years

Yale SOM and Yale Law School have announced the creation of an accelerated JD/MBA program that will enable students to earn both degrees in six semesters, without the need for summer classes. It is designed primarily for students interested in business law but will be useful in a variety of settings involving business and management. Students in the program will be fully immersed in the required curriculum and community life at each school and will graduate with their entering class at both the Law School and SOM. During the two summers, students are free to gain experience in law or business-related positions. "Both schools have a strong reputation for developing leaders for business and society, and this program allows us to draw more efficiently on the unique strengths of each institution," said SOM dean Sharon Oster.

Conference launches India/China initiative

The Yale Center for Customer Insights hosted a conference on April 3 and 4 dedicated to its new China India Consumer Insights Program, an initiative aimed at nurturing and supporting multidisciplinary research on the evolving consumption and investment behavior of China and India, two rapidly changing societies. The program brings together researchers from economics, psychology, and sociology who seek to advance a holistic understanding of these markets and their evolution. The conference hosted top academic and business leaders from the United States, China, and India for discussions on such diverse topics as media influence on consumption in the two nations, how urban social networks in China shape consumer behavior, and infrastructure factors preventing the flourishing of a market for durable goods in rural India. Learn more about the China India initiative at http://cci.som.yale.edu/cici.asp.