CORNELL BUSINESS

An independent student publication

Mayor of Athens
at Johnson
Does Johnson have
too many clubs?
When Im Bored, I
Google Myself
Giorgos Kaminis describes his
vision for the city`s future...pg 2
Op-ed explores the value of expanding
the number of student organizations at
Johnson....pg 7
Implications of the rise of the Internet
on personal identity and trademark
law ....pg 6
Vol.LXXX Samuel Curtis Johnson Graduate School of Management December 5
th
, 2012
By Sanjeev Goluguri
MBA 13
In its 2012 MBA
program rankings,
Bloomberg Business-
week rated Johnson
the seventh best U.S.
business school, a
signifcant jump from thirteenth place
in 2010. Johnson leapfrogged several
top business schools, including Ross,
Sloan, and Darden, in a two-year span
-- marking an emphatic return to Busi-
nessweek`s "Top 10" for the frst time
since 2004.
Ranking Methodology
Businessweek`s rankings are based on
a weighted average of Student Surveys
(45%), Employer Surveys (45%) and
Intellectual Capital (10%).
Surveys were conducted across ac-
credited U.S. business schools, where
students were asked to assess teach-
ing quality, career services, and other
aspects of the business school experi-
ence. Data from the graduating classes
of 2008, 2010, and 2012 were weighed
by 25%, 25%, and 50%, respectively,
to prevent results from skewing toward
transient issues.
Over 200 employers were surveyed.
Each recruiter score was calculated
on the basis of where the company
recruited, perceived quality of gradu-
ates, the number of MBAs hired, and the
company`s experience with MBAs past
and present. This year, a change to how
employer surveys are tabulated ensured
that schools with few, but positive, men-
tions no longer gained an advantage
over schools with many mentions.
Intellectual capital was measured by
tallying the number of faculty articles and
book reviews published in 20 prestigious
publications ranging from the Journal
of Accounting Research to the Harvard
Business Review, New York Times, and
Wall Street Journal.
Businessweek verifed the integrity of
the survey responses through outside
statistical analysis and review. Specifc
details regarding survey methodology
can be found at:
http://bit.ly/Businessweek-2012Methodology
Johnson's Performance
The seventh overall ranking was aided
by the school`s strong performances
in all three components of the survey.
Johnson fared especially well in the
student survey and intellectual capital
components, posting a number two rank
in each category. The school also rose
substantially, from number 23 to number
12, in the employer survey.
Johnson received A+ reviews in all 5
sub-categories measured: career ser-
vices, teaching quality, critical thinking,
leadership skills, and caliber of class-
mates. Letter grades were based on
student survey responses, and awarded
as follows: the top 20% programs in
each category received an A+, the
subsequent 25% received an A, the next
35% received a B, and the bottom 20%
received a C.
Reaction from Johnson Community
In a letter to the Johnson Community
on November 15, Dean Soumitra Dutta
remarked: "We are very pleased that we
moved up in the rankings to seventh!
We seek to be a top 10 business school.
While rankings are an imperfect measure
of success, it is important to be in the top
10."
Dutta urged the community to focus
on ways to "continue to improve and to
communicate to prospective students,
staff, faculty and recruiters how truly
exceptional Johnson and its graduates
are."
Rankings Committee
Last year Johnson established a rank-
ings committee comprised of Johnson
faculty, staff, and students. The commit-
tee has striven to identify opportunities
to improve the school by meeting with
rankings publications to understand each
ranking methodology, and to ensure that
the hallmarks of the Johnson program
offerings were effectively communicated.
Two of the areas on which the com-
mittee focused were awareness and
responses from both employers and
students. The school took steps to
ensure that relationships with corporate
recruiters were strong, and reached out
to them proactively to remind them of the
employer surveys. Director of Student
Services Amanda Shaw, a member of
the committee, made clear that the focus
on response rate was intended to ensure
that rankings are an accurate refection
of Johnson.
The staff also worked routinely with
second-year students to improve their
experience, irrespective of the rankings,
by conducting student-requested events
such as faculty seminars, CMC-led
sessions on networking, and job offer
negotiation workshops.
Camille Cole, MBA `13, led the rank-
ings committee initiative on behalf of
the Student Council. Cole echoed what
many students had already begun to
sense: "Being on the top 10 list strength-
ens Johnson`s brand immensely. It helps
students get more attention with recruit-
ers and generally brings another level
of excitement to the school." Cole urged
students to continue offerings sugges-
tions on how to further improve the
school.
Faculty publications were instrumen-
tal to gaining professors recognition for
excellence in teaching and accomplish-
ments in research. "Faculty hiring is a
current priority for the Dean and others,
and this certainly helps attract top talent
to Johnson," said Shaw.
Forward Momentum
Going forward, Shaw believes Johnson
will remain in the top 10 by making con-
tinuous program improvements and tak-
ing advantage of its current position to
attract quality prospective students, raise
alumni giving rates, hire competitive fac-
ulty, and improve employer relations.
"Having the student survey so high
this year was really gratifying," said
Shaw. "We think of Johnson as a com-
munity and a high-touch place -- and that
differentiates us."
By Evan Charles
MBA 13
In what is shaping
up to be a strong year
for Johnson, the school
captured its fourth
case competition win in
three months.
The latest Johnson victory came at
the Accenture National Case Compe-
tition. Seventy-eight teams from 11
schools competed for the frst place
prize: a summer internship at Accenture.
The Accenture competition is described
as an "event that combines hands-on
consulting experience with the op-
Case Competition Report: Johnson Surges to First Place Finishes
portunity to make a positive impact on
society." Notably, the event provided a
venue to showcase Johnson talent and
gave students an opportunity to interact
directly with the frm.
Johnson also took frst place at the
Deloitte Human Capital Case Competi-
tion, beating teams from USC Marshall
and Yale School of Management in pre-
senting their ideas to a panel of judges
with senior roles at GE and Deloitte. The
competition was noteworthy for its use of
real-world human capital.
Kelli May, MBA '13 described the
event as an opportunity for "the team
... to showcase the skills learned in the
classroom and demonstrate the collabo-
ration and leadership that Johnson is
known for."
May added, "We are thrilled to bring
back the title to Cornell."
In addition, Johnson teams placed at
the UNC Marketing Case Competition
and emerged in frst place at the North-
east Regional GE ECLP Case Competi-
tion, where students were tasked with
analyzing a proposal for GE Aviation
and the industrial internet. Winners were
awarded a prize of $3,000 and invita-
tions to interview with General Electric.
Still more trophies may be in the
pipeline. In late November, a team of
six Johnson students traveled to the
McCombs School of Business to present
their evaluation of an investment oppor-
tunity at the 2012 National Real Estate
Challenge.
With past corporate sponsors includ-
ing Goldman Sachs and JP Morgan, the
challenge was describe by team member
Andrew Zak, MBA '13, MPS/RE '13 as
"one of the most competitive real estate
case competitions in the country."
Such victories have been supported
by the Student Council`s new Title-
Town initiative, which invites students
to request funding for competitions.
Title-Town was established to increase
opportunities for students to interact with
frms, strengthen the Johnson brand,
foster community pride, and bring more
trophies home to Sage.
Johnson Jumps to Seventh Place in Businessweek MBA Rankings
Strong performance in surveys and faculty intellectual capital prope/s Johnson to Top 10 for the hrst t/me s/nce 2004
2 December 5
th
, 2012 Samuel Curtis Johnson Graduate School of Management - News Vol.LXXX
By Daniel Ahmad
MBA 14
Facing a polarized
constituency amid
an even more polar-
ized country, Giorgos
Kaminis, the mayor of
Athens, visited Johnson in November to
discuss the state of the city and his vi-
sion for its future. After the city`s decline
from prosperity to poverty, Kaminis
likened Athens`s future to a cinematic
drama featuring the city as the main star
with Athenians as the supporting cast.
In dual lectures at Johnson -- "EU
Funding in a Time of Crisis: The Athens
Development Fund," and "Relaunch-
ing Athens" -- Kaminis discussed the
dire situation in which the proud city of
Athens fnds herself. He described the
political, economic, and cultural chal-
lenges moving forward in a country
currently known best for corruption and
feigned concern by national politicians
for the plight facing Athens.
As a city struggling to recover from re-
cent economic turbulence, Athens faces
unemployment nearing 25%, with youth
unemployment at over 50%. Add in
rampant poverty, homelessness, crime,
illegal immigration, and reduced social
transfer payments from the national
government, and the conditions are ripe
for a vicious cycle primed to spin out of
control. Unsurprisingly, the people of
Athens are viewing the current state of
affairs with frustration, disinterest, and
disgust.
Enter Kaminis, a professor of constitu-
tional law who served as the Greek Om-
budsman, or Citizen`s Advocate, prior to
assuming the offce of mayor in January
2011. Kaminis recently secured what he
calls the Athens Development Fund, a
$140 million promise from the European
Union to reimburse Athens for programs
that will have a positive impact in his
city. The fund differs from other EU
funding for Greece in that it is controlled
by Athens alone and is shielded from
interference by national politicians with
differing priorities. Kaminis was careful
to describe this as a promise and not a
loan. Programs developed by the Ka-
minis government and local Athenians
could apply for grants from the fund,
which would be open until 2013. All of
the projects would need to be completed
by 2015 to be eligible for reimbursement
by the EU.
The short timeline for the Athens De-
velopment Fund presents a challenge for
Kaminis, but he views it as an opportuni-
ty to turn cash into real economic impact
as he implements his future vision for
Athens.
"Relaunching Athens" is Kaminis`s vi-
sion for a ten-year program that will set
fve overarching and intertwined priori-
ties for the city: to improve local busi-
ness competitiveness, which Kaminis
describes as the key to future economic
development; to improve the quality of
life of Athens residents, especially for the
most vulnerable in society; to reverse the
declining urban infrastructure, marred
by protests and rampant crime; to tackle
the social emergency of unemployment,
poverty, and homelessness; and, fnally,
to seek ways to sustain improvement
over the long-term, in the hope that Athe-
nians will take ownership of the effort to
rebuild. The result of the program is an
integrated approach to economic regen-
eration designed to repair the damaged
fabric of the city through investment in
the people and leading by example.
The transition will not be easy. Kaminis
cited a resistance to compromise and
the unwillingness of Greeks in general to
making sacrifces when confront ed with
both local and national problems. The
current political climate has also led to
extreme right-wing and left-wing par-
ties gaining strength nationally, further
complicating the chance of extracting the
compromises and sacrifces necessary
to move forward.
However, Kaminis is optimistic. He
believes Athenians are "sick of going to
bed knowing that tomorrow will be worse
than today." His plan is bold and ambi-
tious, but Kaminis believes his legitimacy
comes from the fact he is an indepen-
dent candidate who sees Athens best
days ahead.
"It`s not enough to sit back and see
what happens," Kaminis told Johnson
students.
Mayor of Athens at Johnson
Giorgos Kaminis describes his vision for the citys future
Ahead Of The Curve
Quick Media Hits
By Natalie Lin
MBA 13
CULTURE
Zeitgeist
The zeitgeist, as
captured by trending
Google search queries, was abuzz in
November 2012 with the following matters
of interest:
BUSINESS
Finance
European stock-index futures gained
as E.U. ministers eased Greek bailout
terms by cutting loan rates, suspending
interest payments, extending the repay-
ment timeline, and engineering a bond
buyback.
Retail
Ding Dongs, Twinkies, and Wonder
Bread may become treats of the past with
82-year old wholesale baker Hostess
Brands declaring bankruptcy after failing
to strike a deal with its bakers` union.
Consumers hit the Web on Cyber
Monday with high search volume for the
following products, in descending order:
(1) Kindle Fire; (2) Uggs; (3) iPad; (4) iPod
Touch; (5) iPad Mini; (6) Legos.
Technology
Mobile commerce surged on Black Fri-
day with +18.1% visits to retail sites from
mobile devices. eBay/PayPaI reported an
increase of +173% in global mobile pay-
ment volume, while overall e-commerce
increased +20% over the prior year.
Global mobile penetration is on the
rise as 4.3bn individuals now account for
6.4bn cellular subscription plans.
UNIVERSITY
Johnson
Bloomberg Businessweek ranks John-
son #7 among U.S. MBA programs. Last
month, the publication ranked Johnson
frst among top 30 programs for internship
conversion.
The newly launched Johnson iPad app
offers prospective students an interactive
glimpse into the Johnson MBA experi-
ence.

Cornell
G. Peter LePage, Dean of the College of
Arts and Sciences and Professor of Phys-
ics, has been appointed to the National
Science Board.
Rising Google Searches
Location: United States
Search Term Growth
(keywords bolded) Rate (MoM)
1. The 2012 U.S. presidential election results saw Barack Obama
emerge with 62,611,250 popular votes vs. 59,134,475 for
Mitt Romney.
2. U.S. consumers spent $11.2bn in stores on Black Friday, down
1.8% year-over-year.
3. Activision`s Call of Duty: Black Ops 2 released on November 13
and has sold over 11mn units across Xbox, Playstation, and PC to
date.
4. Best Buy's Cyber Monday and Black Friday deals drove traffc in
brick-and-mortar stores as well as online (+104% unique visitors).
5. A Walmart garment factory in Bangladesh caught fre, killing
hundreds and igniting angry protests in Dhaka.
Breakout
> 5,000%
1,700%
450%
90%
70%
By Pratima Arapakota
MBA 13, MPA 13
Twenty Johnson
students traveled to the
2012 Net Impact Confer-
ence held in Baltimore,
MD last month. A commu-
nity of over 30,000 students and profession-
als pursuing careers tackling the world`s
more diffcult environmental, social, and
economic problems, Net Impact empha-
sizes the "triple-bottom line" and focuses
on achieving gains for people, planet, and
proft.
The Net Impact Conference attracted
thousands of MBA students and profession-
als from across North America. While the
excitement and passion for sustainability
was palpable, uncertainty also pervaded as
students asked: what paths are available for
Net Impact
The Pursuit of Sustainability
Across Career Paths
continued on page 3
Vol.LXXX News - Samuel Curtis Johnson Graduate School of Management December 5
th
, 2012 3
By Emily Hutchins
MBA 14
Females comprise
32% of the class of 2014
at Johnson. At Harvard
and Wharton, respec-
tively, they make up 39%
and 45% of the class
of 2014. Like other Ivy League business
schools, Johnson has made concentrated
efforts to attract more women and balance
the gender composition in recent years.
To further this end, the Admissions Offce
has partnered with groups such as the
Women`s Management Council (WMC) and
the Offce of Diversity and Inclusion (ODI) to
promote the benefts of women in business
school. In October 2012, these three groups
hosted events during the annual Johnson
Women in Business (JWiIB) program.
WMC-WLC-WPP CoIIaboration
WMC collaborated with the Women`s Law
Coalition (WLC) and Women in Public
Policy (WPP) to host a networking event
for members and JWib guests. Risa Mish,
Senior Lecturer of Management at Johnson
and an alumna of Cornell Law, was the
guest speaker. Mish shared recommenda-
tions on speaking confdently in business
settings dominated by males. She urged
attendees to speak with confdence, to take
ownership of their accomplishments, and
to bring an open mind to business settings.
When women judge one another, they are
not acting as advocates of women in busi-
ness, Mish observed. She als underscored
the importance of utilizing the resources that
Cornell has to offer women through outreach
between WMC, WLC and WPP.
JWib: PaneI, "Why Women StiII Can't
Have It All
Held on November 8, the JWib welcome
dinner featured a panel discussion on
Anne-Marie Slaughter`s article, "Why
Women Still Can`t Have It All" (http://bit.ly/
CBJ1212-HaveItAll), which was published
in The Atlantic this summer. In the article,
Slaughter argued that women aren`t able
to enjoy success on all levels of the front.
Elissa Sangster, Executive Director at the
Fort Foundation, moderated the panel,
which included Teresa Cooper, Principal and
Chief Inclusion Offcer, Deloitte Consulting,
LLP; Wendy Levitt, Johnson MBA `92, au-
thor of At The Corner of Wall and Sesame;
Maureen O`Hara, Professor of Management
and Finance, Johnson at Cornell; and Cheryl
Spielman, Partner, U.S. Human Capital
Practice, Ernst & Young.
Each panelist brought a unique perspec-
tive on Slaughter`s article based on her own
experience, but consistent themes emerged:
success on all fronts requires concessions,
and the blanket statement "to have it all"
means something different to everyone.
Generally, women are more prone to plan-
ning their lives and this may limit their future
success.
The notion of "building a life" may partially
explain the 32% statistic at Johnson, as
women may not add business school to their
plans when they decide how to steer their
life. Echoing Professor Mish`s sentiment
from the WMC-WLC-WPP event, the panel-
ists encouraged women to sponsor one
another and refrain from judging the choices
made by other women.
JWib: Keynote, Denise Landman, Victo-
ria's Secret PINK
JWib concluded on November 9 with a
luncheon featuring keynote speaker Denise
Landman, CEO of Victoria`s Secret PINK.
Landman stressed the importance of au-
thentic leadership that is honest and candid,
and the importance of acting with integrity
and purpose. She also promoted "outreach
so as to provide support for others" within
the female business community.
Events such as JWib offer opportunities
to engage and promote females both in
business school and in the business world.
The challenge for Johnson and for female
leaders is to keep the message of empower-
ment alive in order to support one another
and, thus, the view that business is a viable
destination for women.
Women at Johnson: 32 Percent and Rising
Johnson engages female business community to increase enrollment
individuals interested in careers in sustain-
ability? For many, the journey is foggy at
best.
It is possible to make a sustainability
impact in any career. While some MBA stu-
dents are able to pursue a career in corpo-
rate sustainability, most will pursue more tra-
ditional roles in marketing, fnance, strategy,
By Liz Riley
& Michael Hendrix
MBA 13
Most of us have heard
the Chinese Proverb:
"Give a man a fsh and
you feed him for a day.
Teach a man to fsh
and you feed him for a
lifetime." During the frst
semester at Johnson,
the fsh is given: great
professors teach core
marketing concepts to
the students. However,
within a practical learn-
ing environment, how do
you create an innovative
way to teach the students to fsh? How do
you instill these concepts so they under-
stand and experience the true nature of a
marketing or product manager?
"Battle of the Brands" (BoB) is a two
week-long competition sponsored by top
global companies recruiting at Johnson.
This year`s sponsors included Colgate-
Palmolive, Johnson & Johnson, Mars,
Reckitt Benckiser, Unilever, and American
Express. Liz Riley, Vice President of Mar-
keting Competitions at the Johnson Mar-
keting Association, led the team organizing
the 2012 BoB event.
BoB convenes students in teams of fve,
each with a second-year student coach.
Teams are assigned to one of the spon-
soring companies and given a product to
market to the Johnson community. This
year, students marketed Neutrogena
Battle of the Brands
Annual marketing competition challenges students to market and sell real products to fellow students
Men`s Face Wash, Snickers Marathon
Bar, Speedstick Deodorant, Dove for Men
Shower Tool, and Airwick Color Changing
Candle. Professor Manoj Thomas, leader
of the Strategic Marketing Immersion,
kicked of the challenge with a discussion
emphasizing key frameworks, marketing
components, and the art of understanding
the targeted consumer.
Over the course of two weeks, the teams
developed marketing plans and executed
campaigns with budgets of $250 each. All
tactics are permissible and creativity is en-
couraged. This year, students created viral
videos, sampling opportunities, contests,
and unique advertising campaigns featur-
ing classmates and professors.
The competition culminated with the
student body gathering at the "Johnson
Marketplace," as teams attempted to sell
their products to Johnson students, each
of whom received tickets for redeeming
products.
Finally, each team presented its strat-
egy to a panel of judges. Teams were
assessed on their application of core
marketing concepts including Segmenta-
tion, Targeting, Positioning (STP) and
Product, Price, Promotion, Placement (4P)
analyses, creativity, fnancial models, and
presentation skills.
The Unilever-Dove team prevailed in the
2012 Battle of the Brands competition with
their Dove for Men campaign. Coached by
Tammi Nguyen, MBA '13, members of the
winning team included Sarah Herse, Ben
Russo, Emily Schwartz, Brett Vegas, and
Joe Webb. Winners were awarded $1000
gift cards from American Express.
or operations. At the Net Impact Conference,
panels ranged from those including speak-
ers directly involved in corporate sustainabil-
ity to professionals who leverage traditional
roles to make a sustainable impact.
Key takeaways on how to pursue sustain-
ability in any role included a:
Focus on impact.
When pitching a sustainability initiative, fo-
cus on framing impacts within the company`s
metrics of success. How many people will
be impacted? What will it cost? What are
the long-term benefts? How does it impact
the bottom line? Sustainability initiatives are
most successful when they are framed as a
business case.
Customer emphasis.
The sustainability needs of customers needs
to be brought into the conversation. Framing
sustainability in terms of changing consumer
concerns about the operations, strategy, and
impact of corporations on environmental, so-
Five years ago, when
I frst heard about Mo-
vember, I was working
for a company called
Schindler Lifts Austra-
lia. One of the senior
managers started a Movember team for
Schindler. Eager for license to grow an
angry 'Mo` at work, and get away with it, I
immediately joined the team and sported
the best "Chopper" Mo style that I could
pull off. That year, I raised $500 for Mo-
vember.
What I didn`t realize was the number of
conversations that my Mo would engen-
der. Such conversations would begin with
comments about the moustache itself,
but quickly lead to what Movember is all
about: raising awareness for men`s health
issues.
One in six men are diagnosed with pros-
tate cancer, which is essentially the men`s
version of breast cancer. While women are
regularly screened for breast cancer, few
men are screened for prostate cancer.
Movember now has over 1.9 million
global registrants. The movement is grow-
ing exponentially in terms of both the num-
ber of people and countries represented.
Now to address the issue all you people
looking for jobs have with Movember: "Its
recruiting season and I can`t grow a Mo
because I have job interviews." Com-
pletely untrue! If you go into a job interview
with a Mo, have a conversation with the
recruiter about it. If you attend a corporate
briefng, wear a Movember badge - it will
help differentiate you from the crowd and
earn you bonus points for raising money
on behalf of a worthy cause. Should
you choose not to grow a Mo, it remains
possible to support the cause by donat-
ing to your favourite Mo-Bro, Mo-Sista or
Mo-Team.
At Johnson this year, Movember
culminated in a gala sponsored by the
Healthcare and Biotech Club. Twenty-six
members of the community participated
and raised a total of $1,850. The Johnson
MBA Movember Team was ranked 2,018
out of 14,981 teams participating in the
United States.
Movember Changes the Face of Johnson
Annual month-long event to promote mens health and raise awareness of prostate cancer
By Colin Carty
MBA 13
Net Impact
continued from page 2
cial, and economic issues makes a stronger
and more salient argument.
Strategic recommendations.
Like any business case, it is impossible
to make a strong case unless one under-
stands how it aligns with the opportunities
and constraints of the business. Acknowl-
edge these considerations in sustainability
recommendations.
Learn more about men`s health issues
and the Johnson MBA Movember Team
at: http://bit.ly/MBAMovember2012.
4 December 5
th
, 2012 Samuel Curtis Johnson Graduate School of Management - Finance Vol.LXXX
Earlier this summer, a
scandal was brought to
light after Barclays Bank
settled charges with the
U.S. Commodity Futures
Trading Commission for
manipulating a key international interest
rate. In general, the London Interbank
Offered Rate (LIBOR) is a measure of
the borrowing cost of capital for specifc
banks in London. The most signifcant
part of this issue is the global prevalence
of LIBOR, which functions as a bench-
mark for many short-term interest rates in
the United States. Though simple at frst
glance, the rate is fairly complex because
it is calculated for a variety of currencies
and lengths of time, or borrowing periods.
While we may not encounter the LIBOR
too frequently in our everyday lives, most
of us have interacted with it in some way.
According to The New York Times, "an
estimated $350 trillion in derivatives and
other fnancial products are tied to it." To
provide additional perspective, $350 trillion
is larger than the 2011 GDP of many coun-
tries including Egypt, Venezuela, Greece,
and Portugal.

Securities are not the only
assets that are linked to LIBOR-mortgag-
es, general and student loans, and credit
cards also have connections to the rate.
With regard to Barclays, two primary
forms of manipulation were alleged. First,
traders were discovered to have been pe-
titioning Barclays` employees to alter rates
to beneft specifc positions. Second, the
Bank was charged with manipulating the
rate downward to improve the perception
of its fscal health. Other fnancial institu-
tions including Bank of America, Credit
Suisse, and Royal Bank of Canada have
been looped into an ongoing LIBOR inves-
tigation by the Attorneys General of New
York and Connecticut; more details should
Impact of the LIBOR scandal and its implications
Scanda/ ra/ses quest/ons on the e#ect/veness of hnanc/a/ regu/at/on and /nterconnectedness of the g/oba/ hnanc/a/ system
By Dan Berkowitz
MBA 14
arise over the coming months.
Looking ahead, according to Bloomberg
News, management of the LIBOR will
likely be transferred to regulators to over-
see the rate going forward. Currently, the
LIBOR is managed by the British Bank-
ers Association, a banking and fnancial
services trade association. Those in sup-
port of increased LIBOR oversight argue
that the rate should be made completely
transparent because of its widespread,
international use.

According to Professor Roni Michaely,
the Rudd Family Professor of Manage-
ment and Professor of Finance at John-
son, "LIBOR will still be a viable bench-
mark for interest rates going forward
because its new rate calculation will be
based on real rather than estimated bank
transactions. The proposed new regula-
tions will also make banks and individu-
als more accountable for manipulation
attempts, including criminal charges."
This begs the question as to whether or
not such alleged manipulation has affected
the global population. Some believe the
impact on mortgages, credit cards, and
loans may have been benefcial because
the rate was generally manipulated
downward. But not all share this optimistic
view-the U.S. Department of Justice`s
Assistant Attorney General Lanny Breuer
believes that such manipulation may have
had "signifcant negative effects on con-
sumers and fnancial markets worldwide."
Professor Michaely shares a similar
sentiment. "It is diffcult to say defnitively
who may have benefted from LIBOR rate
manipulation. It may be that some of us
were able to borrow at a cheaper rate.
However, in the long run, when our fnan-
cial system is not working properly the
international community is worse off."
Although the implications are unclear,
this scandal raises fundamental questions
about the effectiveness of fnancial regula-
tion and the degree of interconnectedness
of our global fnancial system.
In what would become
the largest securities
fraud conviction in
history, former Galleon
Group manager Raj
Rajaratnam was found
guilty of insider trading in October 2011.
Rajaratnam was initially charged with
receiving and conspiring to proft through
a complex fraud racket from material, non-
public information gleaned from insiders
in companies such as Intel and McKinsey
& Co. After listening, spellbound, to over
2,400 taped conversations, the jury sitting
in the Manhattan federal courthouse con-
victed Rajaratnam, who was sentenced to
11 years in federal prison.
Wiretapping is commonly and historically
associated with blue collar and organized
crime, appearing in such fctional dramas
as The Wire to ground drug kingpins. The
Supreme Court has delivered numerous
decisions related to wiretap usage, most
recently in the hotly contested United
States v. Jones case. Congress itself
Insider Trading and the Wiretap
Role of wiretaps in securities fraud prosecution
By Milson Yu
MBA 13, JD 13
has addressed the issue, most famously
in its enactment of the Omnibus Crime
Control and Safe Streets Act of 1968,
Title III, which permits the use of wiretap
investigation only in specially enumerated
crimes-enshrining congressional distrust
of the wiretap in federal law.
The Supreme Court has sanctioned this
restrictive legislative view, noting in Berg-
er v. New York (1967) that "few threats
to liberty exist which are greater than
that posed by the use of eavesdropping
devices." In that same case, the Supreme
Court imposed a heightened standard,
adopted by Title III, for wiretap usage by
requiring demonstration of circumstances
producing a need for the government to
intercept private conversations by way of
wiretap. Indeed, wiretapping has seen its
fair share of legal exposure.
Government prosecutors have found
renewed faith in the wiretap as an impres-
sive tool for proving insider trading, a
novel route of recent adoption. Insider
trading cases traditionally revolve around
circumstantial evidence (e.g. trading re-
cords) to prove benefcial use of material,
nonpublic information. To circumvent Title
III`s conspicuous omission of insider trad-
ing as an enumerated crime, prosecutors
have successfully argued that because in-
vestigative use of the wiretap goes toward
wire fraud, a Title III crime, such evidence
is admissible in later trial even though it is
used to prove a non-enumerated crime-
insider trading.
In the Galleon case, Judge Holwell
admitted wiretap evidence over defense
objections, reasoning that because federal
prosecutors applied for and employed the
wiretap to investigate wire fraud, an enu-
merated crime under Title III, the fact that
insider trading emerged as a prosecutorial
corollary does not damage the wiretap`s
legality or constitutionality. Holwell,
however, refused to set a broad standard,
noting that "insider trading is [not] always
good grounds for a wiretap."
The critical inquiry at this juncture is how
the Second Circuit, on Rajaratnam`s ap-
peal of his conviction, will rule on Holwell`s
decision to admit the wiretap evidence as
permissible under Title III. During hear-
ings, Second Circuit judges seemed to
place much emphasis on the manner in
which authorities apply for wiretaps in the
frst place, noting the glaring inaccuracies
and misstatements in the government`s
affdavit for the Galleon wiretap.
Wiretaps have certainly changed
the game in regards to securities fraud
prosecution. For example, by playing
wiretap tapes in open court, the prosecu-
tion forces into the open the defendant`s
state of mind, annulling the defendant`s
Fifth Amendment right to remain silent to
preserve state of mind.
In any event, as we wait for the Second
Circuit`s word on the matter, U.S. Attorney
Preet Bharara`s recent words loom large:
"Today, tomorrow, next week, the week
after, privileged Wall Street insiders who
are considering breaking the law will have
to ask themselves one important question:
Is law enforcement listening?"
We could talk about
how prestigious
we are
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Editors in Chief
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Contributing Editors
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Contributors
Daniel Ahmad, Pratima Arapakota,
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Daniel Berkowitz, Jenny Delaney,
Michael Hendrix, Emily Hutchins,
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Cornell Business
Vol.LXXX Samuel Curtis Johnson Graduate School of Management December 5
th
, 2012 5
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6 December 5
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, 2012 Samuel Curtis Johnson Graduate School of Management - Law Vol.LXXX
When I was working
towards my Master`s
degree in 2000, I
was concerned about
maintaining a web
presence. I would
constantly search the web for my name
(and variants) to fnd out if I was the
number one search result. For a time,
I was. After I started working, however,
I stopped maintaining my Internet
presence and lost the top slot on Google.
I sometimes wonder if relinquishing the
position may cause trouble in the future.
These days, two other people by the
name of Daniel Sternberg occupy the
position I once held.
The frst is a conductor and composer
at Baylor University who died in 2000.
His Wikipedia entry comes up with some
regularity. If someone were to look me
up it is highly unlikely that they would
confuse me for a composer born in 1913,
or at least I would hope so. The second
top hit is a bit more problematic. It turns
out that a person with my name, complete
with my middle initial, is a senior council
at a law frm in New York. Given that in
the coming years I too will be working in
New York at a law frm I believe there is
a high likelihood of confusion. If a person
were to search for me, there is a very high
probability that they would fnd the other
Daniel S. Sternberg in the New York legal
community.
This raises an interesting question of
confusion in the marketplace. For goods,
we look to trademark protection to prevent
confusion. Essentially, trademark law
ensures that in a particular feld, certain
Thanks to current in-
tellectual property laws,
the modern fashion
industry is a lot about
branding. In fact, the
problem of "copyists" -
that is, companies that make knockoffs of
luxury goods - has become so pervasive
in the fashion industry that trademark and
branding law is transforming the how the
industry operates.
Every year, fashion designers pro-
duce endless variations on their wares,
constantly vying for consumer attention in
an increasingly crowded marketplace. If
designers lose frst mover advantage, they
lose sales to copyists, who make knock-
offs and sell them for less than the original
designer product. While customers may
adore copyists because they make
expensive designs accessible, designers
hate them. After all, why invest the time in
designing when a copyists will make all of
your profts with a knockoff?
"Counterfeits hurt brand equity," said
Camille Cole, MBA '13, a former Sales
Manager at Giorgio Armani. "For instance,
if one goes to Canal Street [in New York
City], and buys a counterfeit that doesn`t
hold up, that makes the designer look
bad. Also, it detracts from the exclusivity
that clients are buying into."
Current intellectual property is failing
to effectively protect designers. While
U.S. law grants design patents for "new,
original and ornamental design[s]," design
patents have never been useful to design-
ers, as they are expensive and often
take years to acquire -- thus lacking the
requisite speed needed in the fast-moving
fashion industry. Copyright isn`t much help
either. While it does protect graphic de-
signs and images that would be attached
to garments, copyright does not protect
the underlying garment itself.
phrases or symbols unambiguously signal
the origin of a product. Trademark law is
very broad when it comes to defning a
trademark. In 2008, the Southern District
of New York found that Joseph Abboud
had sold the rights to using his name in the
context of men`s fashion. In other words,
Mr. Abboud was barred from using his
own name to sell clothes. In other areas,
industry rules exist to prevent confusion.
In media, actors register their names with
a union and must ensure their names are
unique. Media personalities, of course,
have an incentive to be unique. When
David Bowie began his career, he was
known as David Jones. He changed in
order to prevent confusion with another
singer, Davey Jones (of the Monkees).
In the legal community, however, there
do not appear to be any safeguards to
protect against this sort of confusion,
though it is likely to occur. In my case, my
student membership to a legal education
website was suspended when it was
decided that I wasn`t a student (the other
Daniel Sternberg apparently was on fle).
In the past, name confusion may not have
been an issue. With today`s global market
and the rise of the Internet, however,
this may become more of an issue. In
my case, I may be concerned that Mr.
Sternberg would try to block my ascension
to the New York Bar under my given
name. In fairness, he may have a valid
claim of consumer confusion, though such
a claim may not be recognized. It may
be time for Bar Associations to institute a
uniqueness requirement as has existed
in the performance arts for a number of
years. To prevent confusion, it may be that
I should register to practice law as "Daniel
X. Sternberg" (I`ll fgure out what the "X"
stands for later).
Undeterred, some designers have found
another way to protect their designs: trade-
mark law. Trademarks can generally be
created quickly and cheaply. Unlike design
patents, they can be placed on a wide
variety of designs and wares. The problem
is that trademark law codes do not protect
designs by themselves. Generally, only
certain brands, logos, and the like are
protected.
But designers have found a way around
this problem. By attaching logos and sym-
bols such as the famous LV monogram to
their wares, designers like Louis Vuitton
protect themselves from blatant copyists
by suing those who copy their logos in the
process of copying their designs.
In other words, the bigger, more blatant,
and recognizable a brand is, the better. It
is no coincidence that Ralph Lauren, for in-
stance, affxes its famous pony trademark
on all of its wares in the most obvious
way possible. Because this protection is
so effective, designers are pushing hard
to expand the breadth of trademark law.
Christian Loubitin has recently claimed in
a lawsuit against Yves Saint Laurent that
the color red, as present on the bottom of
a shoe, is a form of trademark.
This trend may not last for long. The
Innovative Design Protection Act of 2012,
which may soon be debated in Congress,
seeks to protect "unique, distinguishable,
non-trivial and non-utilitarian" fashion de-
signs, including "article[s] of apparel" and
their ornamentation. The bill would revo-
lutionize the fashion industry. If designers
could protect new designs from copyists,
they might spend more time designing and
less time building branding recognition. Of
course, the bill would also serve as protec-
tion against copyists.
The world of fashion now has its eye on
the world of intellectual property law. In
forthcoming years, it is highly likely that
design will be infuenced by what can and
cannot be protected against competitors.
When Im Bored, I Google Myself
Identity, the internet, and trademark law
Law, Branding, and the Runway
Risk retention will limit the availability of consumer credit
By Daniel Sternberg
MBA 13, JD 13
By Kirk Sigmon
JD 13
The Dodd-Frank Act
is fnally the law of the
land. Though signed into
law nearly two and a half
years ago, the fnancial
reform bill seems fnally
validated by the elections in 2012. For bet-
ter or worse, all of the landmark regulations
that Dodd-Frank mandates - the Volcker
Rule prohibitions, the Franken Amendment
rating agency reforms, the regulatory capi-
tal machinations - will see the light of day
before the next election cycle.
For participants in the residential mort-
gage-backed securities (RMBS) markets,
this means that credit risk retention will
be implemented. Lodged deep in Title IX,
this statute requires a team of regulators
to prescribe joint rules that realign the in-
centive structure of sell side and buy side
securitization.
The idea behind the statute is to rees-
tablish accountability along the securitiza-
tion chain. In the ramp-up to the meltdown
in 2008, mortgage originators extended
loans to less and less creditworthy bor-
rowers, and sold the high-yielding, low-
quality mortgages to banks. The origina-
tors retained none of the risk attached to
the mortgages. Banks then bought the
mortgages from less and less reputable
originators, deposited the mortgages into
trusts, and sold them as multi-tranche se-
curities to investors around the world. The
banks that did retain exposure to these se-
curities did so at their own peril.
When housing prices stumbled in 2007,
the incentive misalignment latent in this
market structure revealed itself with severe
consequences.
The Statute: The risk retention statute
sought to cure this misalignment by requir-
ing banks to put "skin in the game" on the
side of investors. The bill required regula-
tors to write rules stipulating that banks
issuing RMBS retain not less than 5 per-
cent of the credit risk of their product. An
exception to the required retention was
carved out for RMBS made up of "Qualifed
Residential Mortgages" (QRMs), a class of
mortgages that meets stricter underwriting
standards, also written up by the regula-
tors.
The Industry Alternative: In the wake
of the collapse, the securitization industry
undertook to rebuild investor confdence
on its own. The industry`s lawyers unveiled
new contract provisions for RMBS trusts
that they sought to make the market stan-
dard. Each trust is bound by a contract that
governs everything from cash receivables
to the mortgage servicing. The contracts
also include certain representations and
warranties attesting to the quality of the
assets in the trust. In theory, when an as-
set was in violation of these warranties, the
bank or originator would be bound to buy it
back from the trust at face value. In prac-
tice, the crisis revealed that the provisions
were nearly unenforceable and certainly
unworkable for large-scale warranty viola-
tions.
The theory behind the new proposed pro-
visions was to give the warranties teeth.
The provisions would make the warranties
self-enforcing in the event that the trust lost
value. The provisions would also subject
the defaulting assets to the scrutiny of a
third-party arbiter (in lieu of the slow judicial
system) to determine if the warranties were
breached, triggering the repurchase obliga-
tion.
The Debate: Since Dodd-Frank was only
a twinkle Congress`s eye, the debate be-
tween risk retention or warranties with teeth
has raged. The industry argues that its plan
would actualize 100% "skin in the game"
because it requires buybacks of all defec-
tive loans. Congressional policymakers,
wary of governing contracts, respond that
statutorily required risk retention is the only
way to hold the industry`s feet to the fre.
The debate has now outlasted Dodd and
Frank themselves.
The industry has generally found allies in
Republicans on the House Financial Ser-
vices Committee, the ruling majority over-
seeing the regulation writing process since
2011. But the law remains the law. Without
a Republican Senate or Presidency, repeal
of even one section of Dodd-Frank is im-
possible.
The Final Regulation: The agencies
were given until March 2011 to fnalize
the risk retention rules. This deadline was
missed, but the fnal rules are expected
soon.
In sum, risk retention will limit the avail-
ability of consumer credit because it will eat
into the profts of the securitization industry
that links investors with consumers. Con-
gress has held that this is a fair trade to en-
sure safer fnancial products and markets.
The industry disagrees. Sometime next
year, when the regulations are fnalized, the
market will make the ultimate determination
of whether securitization of mortgages re-
mains a proftable enterprise if risk must be
retained. Thanks to the election, the regu-
lations will be written, and securitization
hangs in the balance.
Disclosure: The author was formerly af-
fliated with the American Securitization Fo-
rum, a group that represents both RMBS
investors and dealers.
Credit Risk After the Election
Risk retention will limit the availability of consumer credit
By Sam Niles
JD 15
Vol.LXXX Entrepreneurship / Opinion - Samuel Curtis Johnson Graduate School of Management December 5
th
, 2012 7
On November 9, forty
Cornell students gath-
ered to turn their product
and business ideas into
startup companies over
the course of a single
weekend. The event, called "3 Day Startup"
(3DS), convenes some of the most talented
engineers, designers and business students
on campus and helps them to create
startups in just three days. Industry leaders,
venture capitalists, and seasoned entrepre-
neurs coach the students from the ideation
process to the fnal demo and pitches.
Sohan Jain, BS '12 created the event at
Cornell last year after developing an interest
in entrepreneurship during a summer intern-
ship at Facebook. The 3DS organizing team
is comprised only of students. This year, the
team included Jennifer Delaney, MBA '13
and Ljubica Popovic, MBA `13, who worked
to ensure that Johnson was well represented
at the event.
Since 3DS 2011, two companies have
moved forward with their ventures. Arthur
Soroken, MBA `12 and Nick Fishman, BS `12
co-founded Sonicpanther, a mobile app that
allows users to crowdsource the music play-
ing in restaurants, at last year`s event.
Startups emerging from 3DS 2012
included: a party locator mobile app for col-
lege students; an app designed to enable
independent flmmakers to control video
cameras from an iPad; a men`s fashion
website boasting curated looks; a mobile
app that repurchases groceries at low cost,
just as users are running low; and a mobile
app that tailors music playlists to the user`s
geolocation.
A testament to the hands-on approach to
entrepreneurship thriving at Cornell, plans
for a third annual 3DS event in 2013 are
already in progress.
Innovation Springs from
Cornell 3 Day Startup
Interdisciplinary student collaboration thrives entrepreneurship event
By Jennifer DeIaney
MBA 13
Johnson, the
Social Network
Johnson has too many
student clubs. Period.
Students can join a wide
variety of special interest clubs and either
show their devotion to their career, get a
black eye playing a sport, or produce an
alcoholic beverage. They can also unite
around their culture, another student`s
culture, religion, social causes, and most
importantly, food. So many different
students. So many different groups. Too
many clubs. It is out of control.
It does not take much to start a club.
The barriers are low. Fill out a form and
grab a faculty advisor. Done. Now the
organization can have a club fair table,
logo t-shirts, branded pencils, and, with a
little more effort, a Facebook fan page. I
assume that the ease of this process is a
function of the frustration and agony that
we faced to get into Johnson. We got into
the party and, once inside, we formed too
many of our own.
Old Ezra is the oldest club at Johnson.
While the career ambitions of its members
vary, they have united under a common
goal: to secure a career in fnance. The
club has three separate subgroups that
more clearly defne the career goals of its
members - Investment Banking, Manage-
rial Finance, and Sales & Trading - and
this structure has provided enduring fexi-
bility. If interest in one subgroup suffers in
a particular year, the other subgroups can
still catch ample dues-paying members to
ensure the survival of the club. Old Ezra
is a well-diversifed portfolio. (What else
would one expect?)
Other clubs in Johnson should also
unite under common goals and interests
- sports, lifestyle, religion, culture - to
increase the likelihood of survival and
decrease the confusion generated by the
current, scattered arrangement. Students
should not be required to pay several
membership fees when a fat fee could
cover the activity costs of the greater
organization as well as support the long-
term growth that will contribute to the sub-
group`s strength. This club structure would
encourage collaboration between diverse
student groups and build a lasting, unifed
culture - a greater common goal.
We are Johnson.
Does Johnson have too
many student clubs?
Point/Counterpoint
By Kanon Armstrong
MBA 13
By Mazdak Asgary
MBA 13
and prospective students all experience
the involvement and care that students
show for one another. This sense of
community also makes a student`s time at
Johnson one of exploration, from career
options to life views to personal interests.
Student clubs provide an avenue for ex-
ploration of all three areas.
Johnson began with fve student clubs
focused only on career options - but is
this really enough? In today`s world, isn`t
graduating students who are not only pro-
fcient in business, but also in world issues
and culture, important? Clubs increase a
student`s capital in all three areas deemed
important by sociologist Pierre Bourdieu:
social, human, and cultural.
There is more to business school than
simply exploring career options after-
wards.
Today, Johnson offers a wide range
of clubs including a wine club, women`s
ice hockey team, and fight club. These
organizations serve to expand a student`s
world view beyond what is taught in the
classroom, and simultaneously bring stu-
dents closer together. The interpersonal
interactions and informal bonding that
occurs at events held by these clubs are
invaluable, as they allow many students
to interact with classmates they otherwise
wouldn`t have known outside the class-
room.
Attempting to restrict the number of
clubs would only work against this beneft.
Student clubs deliver their message and
purpose to the entire Johnson commu-
nity -- not just to their members. This is
because clubs host Sage Socials, and are
able to interact with students, faculty, and
staff about their activities and how others
can contribute.
While some Johnson clubs already
exist at the university, and a case could
be made to encourage Johnson students
to broaden their network and interact
with other Cornellians, this argument is
outweighed by the network that Johnson
students need to build with each other in
their short time on campus. This network
will lead students to future job oppor-
tunities and potential new businesses.
Moreover, getting to know your classmate
better should take priority over getting to
know a stranger.
Students with the opportunity to serve
as offcers or members of clubs are able to
explore personal interests, and they typi-
cally value the importance and feel grati-
tude for the existence of these extracurric-
ular organizations. Companies that value
employee interests, beyond the work they
produce alone, are generally more suc-
cessful. One way to foster this culture is
to provide employees with extracurricular
organizations that are celebrated by senior
management. As students re-enter the
business world, this sense of importance
will stay with them and ultimately leave
their organization with more motivated
employees.
Ezra Cornell`s founding vision for
Cornell University was "any person, any
study." This ideal applies outside academ-
ics, and is embodied in Johnson`s current
state of student clubs.
"I feel like I`m talking
to people who have their
fnger much more on
the pulse of the chang-
ing marketplace and
marketing strategies,"
said Steve Sierigk said when discussing
the challenges his company faced and the
impact BR MicroCapital has had on his
business.
When we met, Sierigk had just come
from a workshop held downtown titled
"Social Marketing Strategies for Small
Business," which was hosted by the
founder of a media consultancy. Today,
Sierigk, like many of his small-business
contemporaries, was facing challenges
that didn`t exist when he founded his com-
pany 30 years ago.
"Many of my peers are having the same
business problems as I am-tapping into
social media." In an effort to help over-
come these obstacles, Sierigk looked to
BRM.
Sierigk is the founder of Acorn Designs,
makers of what he describes as "nature-
themed note cards and journals on eco-
friendly papers." As a naturally-gifted artist
and Cornell graduate student studying
entomology in the late 70s`, Sierigk real-
ized he could make money in college by
creating and selling "scientifc illustrations"
of fora and fauna. So great was the draw
of illustrating that he decided to forgo
the world of bugs and instead pursue his
passion for art. "I always like the idea of
the potential of an acorn-slow but steady
growth." So began Acorn Designs.
By the mid-`80s, business was booming.
With 50,000 customers in its database
and seven employees, Acorn Designs
was receiving 30 to 40 unique requests
daily for ecological-related stationary. "We
source the best papers, recycled plant-oil-
based inks and packaging," Sierigk said.
"Our focus was on the retail customer."
But by the late '80s, large paper manu-
factures had swept in and all but captured
the retail market. Of the dozen or so small
entrepreneurs Sierigk estimated were in
the environmental paper market, Acorn
Designs was the only one to survive.
"They all went belly-up, and we had to
change our business model."
In what was one of the company`s frst
and biggest challenges, Acorn successfully
scaled back its operations and shifted its
focus from retail to wholesale customers.
Riding on the momentum of its integrity-
rich product line and great customer ser-
vice, Acorn stopped printing its full-paper
catalogue four years ago and is making
the transition to a web-based catalog
supported by customer interaction using
e-newsletters and social media.
Now, some 20 years later, Sierigk has
seen a resurgence in retail interest as a
result of the Internet. This, however, has
brought with it a new set of challenges-
namely marketing in the digital arena. "My
skill set is so old school. This is where the
BRM coaching really helps."
Sierigk credits BRM for helping him un-
derstand and use social media to elevate
his company`s brand awareness. He has
utilized BRM`s coaches for their under-
standing of, and familiarity with, various
social media platforms to enhance Acorn`s
online footprint. From website develop-
ment to advice on the company`s Face-
book page, Sierigk 's BRM coaches have
helped him to not only improve his digital
presence, but also to see results.
"A lot of my peers don`t have the tools
to keep pace with how quickly the world is
changing," said Sierigk. "BRM`s coaching
has been invaluable. Whenever I talk to a
business peer with concerns about adapt-
ing to the changing marketplace I quickly
mention BRM`s programs as a source of
help. It really feels like I have allies in BRM
who take our concerns to heart."
A BRM Success Story:
Acorn Designs
Big Red MicroCapital credited with
elevating small business brand awareness
By Mick Beideck
MBA 12
Johnson does
not have too
many student
clubs
One of the distinguishing
features of Johnson is its
small class size and corresponding sense
of community. Alumni, current students,
First WorId ProbIems
MBA #1: "I`m 30 and I
have homework. FML."
2nd-Yrs. on 1st-Yr. Students
MBA #1 (2nd-Year): "The frst year class
is so paranoid about recruiting."
MBA #2 (2nd-Year): "I know! I want to tell
them that they`ll all get an internship."
MBA #3 (aIumnus, MBA '12): "You guys
were the same way -- if not worse!"
Reality Check
MBA #1: "My friend just bought a house."
MBA #2: "My friend just had a baby."
Humor: The MBA Experience
Selections from the Facebook group, Sh*t MBAs Say
By Richard Battle-Baxter
MBA 13
MBA #3: "I have no income, am single,
and had a quiz today."
MBA Curriculum - HADM 4300, Intro to
Wines
Mother of MBA: "What are you doing?"
MBA #1: "I`m in class."
Mother of MBA: "Studying hard?"
MBA #1: "It`s a wine class and I get .1
credits for it!"
MBA CurricuIum - NCC 5580, Managing
Operations
Professor G: "Can you guys tell me a
system where bottlenecks form?"
MBA #1: "Flip cup!"
Professor G: "True . But I won`t write
that down since we`re [video] recording
this class."
8 December 5
th
, 2012 Samuel Curtis Johnson Graduate School of Management - Culture Vol.LXXX
Second Year Guidelines
How to Make the Most of the Final Semester
Would you hire some-
one who you believe to
be unethical? Can one
have even the basic
leadership qualities of
transparency, reliabil-
ity, consistency, authenticity, vision, and
trustworthiness without a commitment to
ethical values? The answer is a resound-
ing, "NO" -- yet unethical behavior is all
too common in business schools and in
business itself.
A dramatic example is the recent
cheating scandal at Harvard, where 125
students (out of 275) allegedly cheated
in a large lecture course (Introduction to
Congress). Or consider former Yahoo
CEO Scott Thompson, who was forced
out after fve months when it was revealed
that he had falsely claimed a computer
science degree on his resume.
Integrity is the foundation of leadership,
and one cannot lead in the long-term-
earning and retaining the trust of those
whom one leads-without this essential
quality. As Jerry Rizzo, Director of Leader-
ship Programs, emphasizes: "We trust
leaders whose values are clear and con-
sistent, and whose actions always match
their words."
If Johnson is to create ethical leaders,
which its Honor Code identifes as part of
the school`s mission, the exploration of
ethical issues must be an integral part of
the MBA experience.
The Ethics Action Group (EAG) is a
student-led organization that seeks to
foster attention to ethics at Johnson. This
year, the club`s theme is "It`s Up To Us,"
making clear the message that we are all
responsible for our actions, even when we
yield to peer or organizational pressures.
Being ethical is a choice that individuals
must make, over and over, every day,
amid constant temptations that threaten
our integrity.
With the aim of facilitating discussions
of ethics at Johnson, EAG created six
mini-case studies presenting ethical issues
that have occurred here in the past. Three
of the cases focus on academic issues
including continuing to write during quiz-
zes after the time has expired, rewriting
a teammate`s contribution on a group as-
signment, and collaborating with others on
individual assignments. These issues are
now covered in the Foundations in Leader-
ship course required during frst year, and
a discussion of them is led by Johnson
Leadership Fellows during the frst week
of school.
The other three cases take up profes-
sional concerns such as resume padding,
reneging on a job offer, and replacing a
name on a schedule to have a conversa-
tion with a recruiter. These mini-cases
have been incorporated into the Career
Work Group (CWG), with CWG leaders
guiding the discussions.
Ethics can be summarized as Dana
Radcliff, Senior Lecturer in Business Eth-
ics, has in his NBA 5140 course on Ethics
and Corporate Culture: "With great power
comes great responsibility." Referred to by
Radcliff as "The Spiderman Principle," this
mantra originates from the frst Spiderman
movie.
As students at a top global business
school, we are preparing to exercise
power in our future leadership roles. That
preparation entails understanding-and
practicing now-the responsibly that will
come with that power.
When we become ethically mindful,
habitually considering the potential impact
of our actions on others, we increase our
ability to avoid the ethical traps in a com-
petitive environment that can weaken-or
even destroy-our integrity. We will be the
kind of employees good companies want
to hire and, eventually, the kind of lead-
ers who will exercise power responsibly
and inspire trust in those whom we are
privileged to lead.
Why Ethics Matter
By Josh Robbins
MBA 13
I have spent much of
the frst semester of my
second year at Johnson
racking my brain on how
to make my fnal se-
mester as memorable as
possible. I have taken this endeavor quite
seriously, often choosing to skip life alter-
ing classes such as Managerial Decision
Making to sit in the Atrium and have a think.
I deliberately chose to ignore obviously criti-
cal activities such as drunken debauchery
in lieu of more skill and character building
pursuits.
After months of deliberation, I believe I
have arrived at set of guidelines that any
second year MBA student will fnd valuable.
1) Be a Teacher. Teaching and coaching
have been amongst the most fulflling things
I have done in my life. As a career work
group leader, I have had the good fortune
of helping a group of frst year students land
their ideal internships. Having interned at
Mars, I have tried to help students under-
stand if Mars might be a good ft for them.
As those with more recent experience, I
believe second years have an obligation to
help prepare frst years as best they can.
So consider making yourself available to
your fellow frst year students as 30 minutes
of advice and coaching can transform a frst
year`s internship experience.

2) Learn Outside Johnson. We MBAs
live a self-contained life within the Johnson
walls. With the breathing room that second
year provides, consider venturing out into
campus to take classes in other schools. I
enrolled in a boxing class this past semes-
ter and it was a fantastic workout regimen.
While courses in the law, hotel, and real
estate schools have direct relevance for our
MBA coursework, I encourage venturing
outside the norm and taking some classes
out of pure interest. I am planning to take a
French class to refresh my language skills
and may even consider a graduate level
philosophy class to reacquaint myself with
my undergraduate major.

3) Think Two Years On. All of us will have
excellent functional skills to excel in our im-
mediate roles post MBA. However, we often
stumble as we get into more managerial and
leadership positions. I have two suggestions
to prepare for these roles. First, look at the
past leaders in your professional career to
form an understanding of the type of leader
that you aspire to be. Then, understand
the skills that you would need to develop to
become this leader and address them with
leadership programs offered by professors
such as Clint Sidle and Sean Martin, who
teaches the "Becoming a Leader" class .

4) Network. This is my bitter pill suggestion
as ne tworking is among the most unpleas-
ant tasks known to man. However, this is
the last time in our lives that we will have
access to an extensive group of willing
and successful alumni. So, for the sake of
your career, think about the industries and
companies that you may want to work for
fve years hence and reach out to alumni
within those companies to understand how
you might best prepare for a role at their
companies.
By Anvar Varadaraj
MBA 13
Every Johnson student
should see Big Red play
at Lynah Rink at least
once. However, to ft in
with season ticket hold-
ers - otherwise known as
the Lynah Faithful - here are a few cheers
that will get you in the spirit of the game.
Boring. If you get to the rink early
enough and the opposing team`s starting
lineup is being announced, take a page
from The Cornell Daily Sun, shake it in
front of your face and chant "Boring" until
the Cornell starting lineup is announced.
Then, crumple up the paper and throw
it onto the ice. Bonus points if you hit a
player on the opposing team.
Sieve (the goalie). The opposing team`s
goalie is a sieve - he lets goals in and
the Lynah Faithful doesn`t let him forget
that. When he lets a goal in, count out the
number of goals, and fnish with "We want
more. Sieve, sieve, sieve. It`s all your
fault, it`s all your fault, it`s all your fault."
Remote control goalie. During stop-
pages in play, some goalies like to venture
out of the crease to stretch. The Faithful
treat the goalie as their own little mari-
onette, describing the actions the visiting
goalie is taking (such as "Skate, skate,
skate, tuuuuuurrrnn, skate, skate, glide,
stop") and ending with a rousing shout of
"Bend Over!"
Let's go, Red. This cheer is used when
the student sections are a bit quiet, or if
the Big Red is scored upon. Rally the team
and let them know the crowd is rooting for
them!
Ahhh, see ya, you goon! Used when an
opposing player heads to the penalty box,
followed by "Let`s go, Red" (see #4).
A rope, a tree, hang a referee. Use this
cheer when the referees are making hor-
rible calls.
Screw BU, [schooI name here] too.
This cheer only makes sense when you
realize that Boston University used to be
Cornell`s major rival in the ECAC division
before 1985.
For the full list of cheers, head to
ELynahs cheer page at:
http://bit.ly/ELynahCheerPage.
Cheer Like the Lynah Faithful
A primer for Big Red Hockey newbies
By Farhad Shariff
MBA 13
The Johnson Diwali
function opened to a
packed house with more
than 300 students at-
tending. Both students
and the teachers donned
Diwali 2012
Johnson Celebrates the Festival of Lights at Sage Hall
By Amardeep Virk
MBA 13
their best indian outfts and took part in
the festivities.
True to Bollywood, there was lots of
singing and dancing -- even the profes-
sors and the Dean took part.
The evening culminated with an
outburst of energy where participants
and spectators alike stormed the stage
and demonstrated their knack for superb
hand-leg coordination.