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This post offers a philosophical and historical critique of ESG as a framework for corporate responsibility. It argues that while ESG was intended to integrate environmental and social ethics into business practice, it often reduces these concerns to external compliance—checklists, ratings, and metrics that fail to reflect authentic moral commitment.   Tracing the roots of business ethics from ancient economies to modern corporations, the author highlights how economic activity was once embedded in community values. Today’s institutionalized responsibility models—especially ESG—risk reinforcing the very separation between ethics and enterprise they seek to repair.   The piece calls for a return to an internal, values-driven approach: ethics as a natural part of business identity, not an afterthought. This shift begins with education—embedding ethical thinking in business curricula from the outset, shaping future leaders who see responsibility not as a regulatory burden but as a core principle of their profession.   To read the full article, visit our Hebrew main blog

This post examines Israel’s experience in attempting to reduce single-use plastic consumption, highlighting how environmental regulation intersects with behavioral economics, social equity, and political realities.   While environmental taxes can be effective in theory, their success depends on cultural and social context. In Israel, a tax on single-use plastics led to a significant initial decline in consumption but was later repealed amid political backlash—especially from the ultra-Orthodox community, which viewed the measure as unfairly targeting them.   Drawing on field research with ultra-Orthodox communities, the post suggests that "soft regulation"—including nudges, health messaging, and cultural framing—can encourage more sustainable behavior without creating resistance. Small, practical behavioral shifts can have a cumulative impact when embedded in a supportive policy environment.   Ultimately, sustainable change requires policies that are not only environmentally sound but also socially sensitive. Effective ESG-oriented governance must consider local norms, motivations, and barriers to ensure long-term impact.   To read the full article, visit our Hebrew main blog

The debate over corporate social responsibility and ESG principles has reached a critical juncture, with companies facing unprecedented pressure to balance shareholder interests against broader stakeholder concerns. This tension has intensified amid political backlash against ESG initiatives, exemplified by Trump's recent "Drill, baby, drill" rhetoric. However, traditional economic analysis – which assumes purely rational decision-making – may be insufficient to understand this complex transformation in corporate behavior and legal expectations. This article introduces behavioral economics as a powerful but underutilized lens for examining corporate responsibility. Unlike classical economics, behavioral economics recognizes that human decisions are influenced by emotional factors, cognitive biases, and perceptions of fairness – not just profit maximization. Through examples like the famous "ultimatum game," the research demonstrates how people consistently make decisions that prioritize fairness over personal gain, willingly sacrificing economic benefits to maintain ethical standards or punish unfair behavior. It explores how this behavioral perspective is reshaping corporate law and governance. Legal frameworks are increasingly incorporating stakeholder fairness principles, transforming fundamental corporate law doctrines and moving beyond the traditional focus on shareholders alone. Professor Bukspan argues that integrating behavioral economics insights into corporate strategy offers companies a compass for navigating legal risks, seizing business opportunities, and building sustainable cultures of cooperation, trust, and social responsibility. To read the full article, visit our Hebrew main blog

Responsible Business Conduct – The OECD and the National Contact Point in Israel This position paper outlines the OECD's leading role in advancing responsible business conduct and highlights Israel's National Contact Point (NCP) as a key mechanism for implementing these principles both locally and internationally. The OECD Guidelines for Multinational Enterprises – widely regarded as the "gold standard" of corporate responsibility – provide non-binding yet highly influential standards across areas such as transparency, environmental protection, taxation, labor rights, and anti-corruption.   The paper presents the OECD's six-step due diligence framework, stressing that it is a dynamic and preventive process aimed at continuous improvement rather than perfection. It describes how Israel's NCP, operating under the Ministry of Economy and Industry, handles complaints, facilitates mediation, and raises awareness across sectors.   The paper emphasizes how NCPs in over 50 countries help companies align with ESG principles through non-judicial, constructive engagement. Looking ahead, the analysis identifies challenges including fragmented regulation, increasing compliance burdens, and the potential misuse of complaint mechanisms – while reaffirming the critical importance of professionalism and impartiality.   To read the full article, visit our Hebrew main blog

Shareholder meetings serve as a vital mechanism for influencing corporate behavior, offering insight into how values translate into real-world decisions. This post therefore explores how institutional investors in Israel use shareholder voting to express their views on key ESG-related issues such as executive compensation, board diversity, and corporate governance.   The analysis reveals meaningful differences between the voting patterns of institutional investors and controlling shareholders, particularly in how they approach topics like executive pay and board appointments. Notably, it highlights the gap between support for diversity in principle and the actual representation of women on boards. While institutions often back female candidates, few are nominated—especially for roles influenced by controlling shareholders. Furthermore, compared to investors in other countries, Israeli institutions tend to be significantly more critical and selective in their voting behavior.   Overall, a series of identified patterns ultimately underscore the role of shareholder engagement as a tool for advancing accountability, transparency, and ESG principles in the Israeli market.   To read the full article, visit our Hebrew main blog

This position paper argues that behavioral economics provides essential tools for bridging the gap between consumers' environmental values and their actual purchasing behaviors. Drawing on empirical research, Prof. Hochman demonstrates how psychological factors often prevent environmentally-conscious intentions from translating into green consumer choices.   The paper presents compelling evidence from two recent studies. The first reveals that simple taste testing can double consumer willingness to purchase aesthetically imperfect "ugly" produce – showing how direct sensory experience can overcome visual bias and potentially reduce significant food waste. The second study identifies a counterintuitive finding: consumers are generally more willing to sacrifice time than money for environmental benefits, despite money being renewable while time is not.   These findings support Prof. Hochman's central position: green consumer choices are driven less by environmental information or values, and more by subjective experience at the decision point. The paper advocates for practical applications of behavioral economics principles, including strategic placement of tasting stations, designing green defaults into purchasing systems, and simplifying environmental impact messaging.   For organizations committed to ESG principles, Prof. Hochman presents a clear stance: offering green alternatives isn't sufficient—these options must be perceived as accessible, worthwhile, and aligned with consumers' immediate needs. By incorporating psychological insights into business strategy, companies can create choice environments that enable consumers to act in accordance with environmental values without feeling they're making burdensome sacrifices. To read the full article, visit our Hebrew main blog

This blog post, written by Prof. Hillel Schmid and Prof. Itay Greenshpan, explores the relationship between philanthropic foundations and environmental organizations in Israel. Drawing on recent research, the authors analyze the sources of funding for environmental NGOs and the structural dependencies that arise as a result. The post highlights how the limited number of philanthropic foundations operating in Israel—alongside a decline in government funding and insufficient corporate support—creates challenges for environmental organizations striving to maintain both financial stability and ideological independence. The authors offer several recommendations to strengthen the sector, including the development of new partnerships, diversification of funding sources, and efforts to build trust between donors and NGOs. They emphasize the importance of maintaining a balance between values and pragmatism in order to preserve the critical role of environmental organizations in Israeli society. To read the full article, visit our Hebrew main blog.

This position paper explores the critical interplay between adaptation and mitigation as complementary strategies for effective climate risk management. The paper distinguishes between adaptation (managing preparedness for climate impacts) and mitigation (reducing factors causing climate change), showing how businesses and governments must balance short-term resilience with long-term risk reduction. Examining financing challenges, the analysis highlights how immediate climate impacts require emergency funds and public-private partnerships, while long-term transformation demands innovative financial instruments like green bonds and climate investment funds. The paper identifies key stakeholders — governments providing regulatory frameworks, regulators ensuring financial stability, and institutional bodies directing capital flows — and demonstrates how their coordinated action integrates physical risk management with transition risk management, as evidenced by recent Israeli initiatives like the Green Taxonomy and Banking Directive No. 345. By integrating these approaches, organizations can not only reduce climate risks but also unlock new economic opportunities within a sustainable green economy. To read the full article, visit our Hebrew main blog

This post explores how political dynamics in the United States are shaping the availability and design of ESG (Environmental, Social, and Governance) investment products offered to the public—particularly through pension funds. As partisan divisions around ESG deepen, state-level political leadership is playing an increasingly active role in defining which investment options are promoted or restricted. Drawing on recent empirical studies, the post highlights a stark divide between Republican-led and Democratic-led states. While the latter tend to support broader access to ESG-aligned financial products, the former often impose limitations or even bans on them—citing concerns about politicization or financial performance. These regulatory decisions, often motivated by political ideology, may ultimately impact not only the range of choices available to savers, but also the long-term effectiveness of ESG strategies themselves. The post also discusses the legal and public implications of such political interference. A notable example is a recent court case involving American Airlines’ pension fund, where the balance between fiduciary duty and ESG preferences came under judicial review. This and similar cases point to a growing legal complexity in aligning ESG considerations with institutional responsibilities in polarized environments. Ultimately, the post raises important questions about who decides which investment products citizens are allowed to access, and whether ESG-related decisions should be driven by political agendas—or by evidence-based financial and sustainability considerations. To read the full article, visit our Hebrew main blog.

In recent years, major figures in the tech industry have positioned themselves as champions of progressive values, including those reflected in ESG (Environmental, Social, and Governance) principles. However, this article explores a surprising shift: the increasing fusion between business leaders and political power structures, even under administrations whose policies may contradict those same progressive ideals. The authors examine how tech billionaires such as Elon Musk, Jeff Bezos, and Mark Zuckerberg have navigated the political landscape. They show how corporate leaders, once external actors advocating for change, are now becoming key players within government institutions. This movement raises complex questions about the authenticity of corporate ESG commitments, as well as about the risks to democratic processes when private economic interests and public governance become intertwined. Through recent examples and a critical lens, the article highlights the gradual erosion of boundaries between corporate power and state authority. It warns that what once seemed like a theoretical concern—capital increasingly controlling government—has now materialized into an observable and urgent phenomenon that challenges the ideals of democratic oversight, public accountability, and responsible governance. To read the full article, visit our Hebrew main blog.

This paper advocates for implementing "green demolition" through selective deconstruction in Israel's urban renewal projects, highlighting environmental, social, and economic benefits. While Israel has embraced green building standards for new construction, the demolition phase remains largely overlooked in regulatory frameworks. Despite thousands of apartments being demolished annually, generating approximately 1.5 tons of waste per 10 square meters, pre-demolition deconstruction receives minimal incentives. Selective deconstruction—the controlled dismantling of buildings to enable reuse and recycling—could divert an estimated 700,000 tons of waste from landfills annually. The Just A Second Association proposes a three-pronged approach: engaging developers, working with regulators to create incentives, and raising public awareness. Key challenges include the need for regulatory changes, economic incentives, cost-benefit analysis, infrastructure development, and increased awareness. International examples from Germany, the Netherlands, the United States, and the European Union demonstrate successful implementation through various policy mechanisms. The paper concludes that integrating selective deconstruction into Israel's construction industry requires mandatory legislation, economic incentives, and public-private partnerships. To read the full article, visit our Hebrew main blog

This position paper explores how the convergence of two major revolutions—the Impact Revolution and the Artificial Intelligence (AI) Revolution—is transforming the landscape of business competition. Using the collaboration between BMW and Toyota as a case study, the paper shows how global challenges are prompting companies to adopt coopetition—a strategic approach that integrates competition and cooperation. The Impact Revolution redefines the purpose of business to include not only financial profit but also social and environmental value, aligned with the UN's Agenda 2030. Meanwhile, AI enables smarter, faster, and more inclusive collaboration—by democratizing knowledge, optimizing global partnerships, and accelerating progress toward the Sustainable Development Goals. Together, these revolutions foster a new business paradigm, where competitive advantage lies in the ability to build high-impact strategic alliances. Despite challenges such as trust and value-sharing, coopetition—supported by AI—is emerging as a powerful tool for sustainable and systemic change. To read the full article, visit our Hebrew main blog