Stern’s Whelan Cites Costco and Esusu to Challenge Cost-Cutting Model

NYU Stern

Investing in workforce compensation and ecosystem sustainability drives superior commercial productivity and growth over short-term value extraction.

AI-assisted summary of Professor Tensie Whelan (NYU 1980) | NYU Stern MBA and PhD Convocation, Class of 2025 — original source. Check the original for full context.

Source published: 2026-09-22

Key ideas

Empirical research from the NYU Stern Center for Sustainable Business shows that sustainably marketed consumer packaged goods grow at twice the rate of conventional goods and capture a 28% price premium. (0:06)
Costco demonstrates long-term value creation by paying an average wage of $32 per hour, driving a 93% employee retention rate and generating 180% more revenue per employee than Walmart. (0:06)
NYU Stern alumnus Samir Goel scaled fintech unicorn Esusu to a $1 billion valuation by reporting on-time rent payments to unlock $50 billion in credit capacity for over 200,000 previously uncredited individuals. (3:16)
Professor Tensie Whelan outlines four critical leadership disciplines for navigating volatility: systems thinking, alignment with societal goals, enduring value creation, and disciplined execution. (0:06)

Detailed notes

## Background Published on YouTube by the NYU Stern channel on September 22, 2026, this video features Professor Tensie Whelan delivering a convocation address to Stern's MBA and PhD Class of 2025 on May 16, 2025. Whelan, a 1980 NYU graduate, serves as Distinguished Professor of Practice in Business and Society and Founding Director of the NYU Stern Center for Sustainable Business.

## TL;DR Addressing a graduating class facing rapid disruption and complexity, Professor Tensie Whelan outlines four critical leadership lessons: adopting systems thinking, aligning corporate vision with societal purpose, prioritizing enduring value creation over short-term extraction, and executing with managerial discipline. She validates these principles through commercial benchmarks, citing supply chain resilience at Nespresso, sustainable market premiums at Unilever, and employee productivity gains at Costco. Whelan synthesizes these concepts through the success of Esusu, a fintech unicorn co-founded by NYU Stern alumnus Samir Goel that expands credit access for underserved renters while generating mutual utility across landlords, lenders, and government agencies. She closes by challenging graduates to channel their expertise toward solving pressing global issues.

## Atmosphere & style The address blends celebratory academic ceremony with crisp, high-impact business rhetoric. Whelan opens with charming wit regarding the strict five-minute speaking limit, immediately establishing an engaging, brisk cadence that respects the graduates' milestone. Her delivery shifts seamlessly from rigorous data-driven corporate insights to an empowering, purposeful call to leadership that leaves the audience inspired rather than intimidated by global volatility.

## Bulletin - [00:06](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=6s) Empirical research from the NYU Stern Center for Sustainable Business shows that sustainably marketed consumer packaged goods grow at twice the rate of conventional goods and capture a 28% price premium. - [00:06](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=6s) Costco demonstrates long-term value creation by paying an average wage of $32 per hour, driving a 93% employee retention rate and generating 180% more revenue per employee than Walmart. - [03:16](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=196s) NYU Stern alumnus Samir Goel scaled fintech unicorn Esusu to a $1 billion valuation by reporting on-time rent payments to unlock $50 billion in credit capacity for over 200,000 previously uncredited individuals. - [00:06](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=6s) Professor Tensie Whelan outlines four critical leadership disciplines for navigating volatility: systems thinking, alignment with societal goals, enduring value creation, and disciplined execution.

## Key takeaways - [00:06](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=6s) Modern leaders operate in a volatile, highly disrupted world that requires systems thinking rather than insular corporate management. - [00:06](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=6s) Nespresso safeguards its core supply chain by investing in the climate resilience and financial security of 150,000 smallholder coffee farmers. - [00:06](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=6s) Aligning corporate strategy with broad societal goals drives market differentiation and sustained revenue growth rather than mere altruism. - [00:06](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=6s) Sustainably marketed consumer products outperform conventional alternatives by growing at double the pace while securing a 28% price premium. - [00:06](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=6s) Extracting short-term value by slashing worker wages ultimately damages organizational health and inflates turnover replacement costs. - [00:06](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=6s) Costco maintains a 93% retention rate against an industry average of 40% by offering competitive pay and strong benefits. - [00:06](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=6s) Investing in front-line workers yields superior commercial returns, evidenced by Costco employees generating 180% more revenue than Walmart workers. - [03:16](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=196s) A transformative corporate vision fails unless paired with rigorous, disciplined operational execution. - [03:16](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=196s) Samir Goel addressed systemic barriers to wealth creation by building financial reporting infrastructure for historically excluded communities. - [03:16](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=196s) Esusu aligns the economic incentives of renters, property owners, credit bureaus, and mortgage agencies into a mutually reinforcing ecosystem. - [03:16](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=196s) Reporting on-time rental payments has unlocked $50 billion in credit capacity and provided over 200,000 people with their first credit scores. - [03:16](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=196s) Graduating business leaders must reject retreat from complex global problems and proactively direct their expertise toward sustainable innovation.

## Detailed walkthrough ### [00:06](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=6s) Leading Through Complexity: Systems Thinking, Societal Purpose, and Value Creation

Introduced to the lectern by Interim Dean JP Eggers, Professor Tensie Whelan opens her convocation address with a lighthearted acknowledgment of the time constraint: while as a professor she typically enjoys an hour to articulate a thesis, the graduating class is "lucky" because she has only five minutes. She frames the reality awaiting the graduates as a world that is *"everything, everywhere, all at once"*—an environment characterized by rapid disruption, volatility, and deep complexity across every sector of human endeavor. Drawing from her career as both a practitioner and academic collaborating with visionary business and nonprofit executives, Whelan synthesizes four essential leadership lessons through the practices of real-world chief executives.

The first lesson centers on the necessity of systems thinking. To navigate intense complexity and rapid change, leaders must look beyond narrow organizational boundaries to understand the broader ecosystem in which their business operates. Whelan illustrates this with Nespresso, pointing out that its CEO can consistently deliver premium coffee to consumers only by ensuring the resilience of its agricultural supply chain. Specifically, the enterprise must actively support its 150,000 smallholder farmer partners in mitigating the adverse impacts of climate change on crop yield and bean quality, while guaranteeing they earn enough income to sustain their households and retire comfortably.

Whelan’s second lesson posits that corporate vision must directly align with broader societal goals and shared purpose. In an era marked by climate disruption and inequality, sustainable business models are no longer purely altruistic—they drive tangible commercial outperformance. Under former CEO Paul Polman, Unilever made *"making sustainable living commonplace"* its core corporate purpose, unlocking substantial revenue growth and market differentiation. Whelan notes that empirical research conducted by the NYU Stern Center for Sustainable Business corroborates this advantage: across consumer packaged goods categories, sustainably marketed products are expanding at twice the pace of conventional alternatives while commanding a 28% price premium.

Her third lesson warns against the extractive trap: leaders must create enduring value rather than extract short-term value. While many corporations slash compensation to artificially inflate profit margins, Whelan argues that this approach destroys underlying enterprise value. She contrasts this with Costco's workforce strategy:

- **Competitive Compensation:** Costco pays store clerks an average of $32 per hour alongside industry-leading benefits. - **Superior Retention:** Costco achieves a 93% employee retention rate, compared to an industry average of 40%. - **Turnover Cost Avoidance:** Replacing a retail associate costs at least $5,000 per departure. - **Productivity Differential:** A Costco employee generates 180% more revenue than an equivalent employee at Walmart, illustrating how investing in labor delivers superior commercial productivity.

---

[03:16](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=196s) Systemic Execution: The Story of Samir Goel and Esusu

```mermaid flowchart TD accTitle: Esusu Systemic Value Creation Model accDescr: A flow diagram showing how Esusu connects renters, landlords, credit agencies, mortgage issuers, and government into a self-reinforcing value loop.

subgraph CorePlatform ["Esusu Platform"] E["Esusu Data Platform (Captures On-Time Rent Payments)"] end

subgraph Beneficiaries ["Stakeholders & Value Created"] R["Renters (Credit History & Wealth Building)"] L["Landlords (Higher Quality, Stable Tenants)"] C["Credit Bureaus (New Customer Pool)"] M["Fannie Mae & Freddie Mac (Lower Mortgage Default Risk)"] G["Federal Government (Expanded Economic Opportunity)"] end

R -->|"Pays rent on time"| E E -->|"Reports payment data"| C E -->|"Reports reporting data"| L E -->|"Shares credit data"| M M --> G C --> R ```

Whelan's fourth principle addresses managerial execution: a transformative vision is meaningless without disciplined operational management. To demonstrate all four lessons unified in practice, she shares the journey of Samir Goel, a recent NYU Stern alumnus and the co-founder and CEO of financial technology company Esusu. Growing up as the child of immigrants who were locked out of traditional credit and therefore struggled to build generational wealth, Goel diagnosed the structural flaws of the financial system and engineered a new business model around social purpose.

Goel designed a data reporting infrastructure that records on-time residential rent payments and feeds that verification directly to credit bureaus, property owners, and housing finance entities such as Fannie Mae and Freddie Mac. Rather than attempting piecemeal reform, Goel engineered a multi-stakeholder model where every participant derives tangible economic utility: - **Renters** build verifiable credit profiles that unlock paths to capital. - **Landlords** attract more reliable, higher-quality tenants who consistently pay on time. - **Credit Agencies** expand their serviceable consumer base. - **Mortgage Issuers** reduce underwriting and default risk. - **The Federal Government** achieves broader public-policy goals around economic inclusion.

Because value is distributed across the entire ecosystem, every player is incentivized to support the transition. Within a few short years, Esusu has unlocked $50 billion in credit capacity for mortgages, automobile financing, and higher education, while helping more than 200,000 individuals establish their first official credit score. Today, Esusu is a $1 billion unicorn backed by premier global investors, including SoftBank.

Concluding her remarks, Whelan urges the Class of 2025 not to retreat from the daunting global challenges ahead. Instead, she charges them to identify where their skills can make a focused impact and to embrace the responsibility of leading the next frontier of sustainable innovation.

## Notable quotes > [00:06](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=6s) lucky — Tensie Whelan

> [00:06](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=6s) everything, everywhere, all at once — Tensie Whelan

> [00:06](https://www.youtube.com/watch?v=wBHlucFcbJ4&t=6s) making sustainable living commonplace — Paul Polman

## Mentioned Tensie Whelan, JP Eggers, NYU Stern Center for Sustainable Business, Nespresso, Paul Polman, Unilever, Costco, Walmart, Samir Goel, Esusu, Fannie Mae, Freddie Mac, SoftBank

## Video description Tensie Whelan (NYU 1980), Distinguished Professor of Practice, Business and Society, and Founding Director, NYU Stern Center for Sustainable Business, addresses Stern's MBA and PhD Class of 2025 on Friday, May 16, 2025.

[Source](https://www.youtube.com/watch?v=wBHlucFcbJ4)

中文简报

斯特恩商学院惠兰引用Costco与Esusu案例质疑单纯降本模式投资于员工薪酬与生态系统可持续性，可带来优于短期价值榨取的卓越商业生产力与增长。在面向面临急剧变革与复杂局势的应届毕业生演讲时，Tensie Whelan教授概述了四项关键的领导力法则：运用系统思维、使企业愿景契合社会目标、将创造持久价值置于短期榨取之上，以及以管理纪律加以执行。她通过商业基准验证了这些原则，列举了Nespresso的供应链韧性、联合利华的可持续市场溢价，以及Costco的员工生产力提升。Whelan通过Esusu的成功综合阐述了这些理念，这家由纽约大学斯特恩商学院校友Samir Goel联合创立的金融科技独角兽企业，在扩大服务不足租客的信贷获取渠道的同时，也为房东、贷方和政府机构创造了互惠效用。她在演讲结束时勉励毕业生，将自身专业知识投入到解决紧迫的全球性问题中。纽约大学斯特恩商学院可持续商业中心的实证研究表明，以可持续方式营销的包装消费品其增速是传统商品的两倍，并获得了28%的价格溢价。 (0:06) Costco通过支付32美元的平均时薪展现了长期价值创造，这带来了93%的员工留存率，其人均创收比沃尔玛高出180%。 (0:06) 纽约大学斯特恩商学院校友Samir Goel将金融科技独角兽企业Esusu的估值提升至10亿美元，该平台通过上报准时交租记录，为20多万此前缺乏信用记录的人群释放了500亿美元的信贷额度。 (3:16) Tensie Whelan教授概述了应对动荡局势的四项关键领导力准则：系统思维、与社会目标保持一致、创造持久价值以及严谨执行。 (0:06)

Reading summary

Professor Tensie Whelan argues that navigating modern disruption requires leaders to integrate systems thinking, societal purpose, and disciplined operational execution rather than pursuing short-term value extraction. Aligning Systems Thinking and Purpose with Commercial Growth (0:06) Whelan contends that leaders must look beyond narrow enterprise boundaries to manage the environmental and social ecosystems in which they operate. For example, Nespresso protects its core coffee supply by assisting 150,000 smallholder farmers in mitigating climate change impacts and sustaining household income. Aligning corporate vision with shared societal needs also functions as a growth driver rather than a philanthropic cost. Under former CEO Paul Polman, Unilever framed sustainable living as its primary purpose to unlock revenue growth and market differentiation. According to data from the NYU Stern Center for Sustainable Business, sustainably marketed consumer packaged goods grow at twice the rate of conventional items and earn an average 28% price premium. Investing in Workforce to Build Enduring Value (0:06) Whelan cautions against extractive cost-cutting measures, such as suppressing labor compensation to inflate short-term margins, asserting that such practices diminish long-term enterprise health. To demonstrate the financial utility of investing in human capital, Whelan points to Costco's labor model. Costco pays store associates an average wage of $32 per hour alongside extensive benefits, achieving a 93% employee retention rate compared to the 40% retail industry average. By avoiding replacement costs of at least $5,000 per worker departure, the company sustains higher operational stability, with Costco employees generating 180% more revenue than equivalent workers at Walmart. Multi-Stakeholder Execution in Financial Infrastructure (3:16) Whelan notes that purpose-driven strategies depend on disciplined operational models that align economic incentives across diverse stakeholders. She highlights Esusu, a financial technology company co-founded by NYU Stern alumnus Samir Goel, which records on-time residential rent payments to build consumer credit scores. Esusu's data infrastructure distributes tangible utility across all participants: renters establish credit profiles, property owners retain reliable tenants, credit bureaus gain new clients, mortgage entities such as Fannie Mae and Freddie Mac reduce default risks, and public institutions advance economic inclusion. Whelan reports that this multi-stakeholder model has unlocked $50 billion in credit capacity, helped over 200,000 individuals obtain their first credit score, and elevated the company to a $1 billion valuation backed by investors including SoftBank. Whelan concludes by urging graduating business leaders to direct their analytical and management skills toward pressing systemic challenges, framing sustainable operational innovation as an essential executive responsibility.

Source quotes

[0:06] Tensie Whelan: lucky [0:06] Tensie Whelan: everything, everywhere, all at once [0:06] Paul Polman: making sustainable living commonplace

Original transcript

[0:06] JP Eggers: Please welcome to the lectern, [0:08] Professor Tensie Whelan. [0:16] Tensie Whelan: Thank you for that kind introduction, [0:19] JP, and it is [0:21] an honor to be addressing you here today. [0:22] I have to say, it's a little bit stressful. [0:25] As a professor, I [0:26] normally have an hour to make my point. [0:28] Lucky for you, I have 5 minutes. [0:31] Okay. So, you are graduating [0:34] into a world that is [0:36] everything, everywhere, all at once. [0:39] It's enormously volatile, complex, [0:42] characterized by rapid change [0:44] in every field of human endeavor. [0:47] In my own career as [0:48] a practitioner and as an academic, [0:51] I've been lucky enough to learn the art of [0:54] achieving personal and [0:55] professional success in [0:57] the face of challenges through working with [0:59] brilliant and committed [1:01] business and nonprofit leaders. [1:03] I thought I might share some [1:05] of those lessons I've [1:06] learned through the lens of my work [1:07] with a few CEOs, [1:09] one of whom is a Stern graduate. [1:12] So my first lesson [1:14] to manage today's complexity, [1:17] we need to think in systems and look outside [1:20] the box to understand [1:22] why things do or do not work, [1:24] especially during a period of rapid change. [1:28] For example, Nespresso's CEO [1:31] can only provide customers [1:33] with high quality coffee [1:35] if his company makes sure that [1:37] 150,000 farmer partners are [1:40] able to handle the negative effect [1:42] of climate change on crop productivity [1:45] and quality and to make enough money [1:47] to support their families [1:49] and retire comfortably. [1:51] Second lesson: [1:52] In a world struggling [1:55] with climate change and inequity, [1:56] we need a corporate vision [1:58] linked to broader societal goals and purpose. [2:01] Unilever's former CEO Paul Polman [2:05] drove significant revenue growth and [2:09] competitive positioning by creating [2:12] a corporate purpose that focused on [2:14] making sustainable living commonplace. [2:17] Our own research at Stern finds that [2:20] sustainably marketed products are growing [2:22] twice as fast as [2:23] conventional at a 28% premium. [2:26] Third lesson: We must create [2:30] value as corporate leaders [2:32] rather than extract value. [2:34] For example, many companies seek to pay [2:38] their employees as little as [2:39] possible in order to improve their margins. [2:42] That can destroy value. [2:44] Costco has the highest [2:46] paid employees average of [2:48] $32 an hour for clerks and [2:50] the best benefits amongst its competitors. [2:53] In return, it has [2:54] the highest employee retention rate [2:56] in the industry, [2:57] 93% versus 40% for its competitors. [3:01] Costs at least $5,000 to replace those folks, [3:07] and a Costco employee generates [3:09] 180% more revenue than a Walmart employee. [3:13] Value creation in action. [3:16] Finally, we need to execute [3:18] well on our vision, [3:19] which means good management. [3:21] I'd like to share the story of Samir Goel, [3:25] a recently graduated Stern alum [3:28] and cofounder and CEO of [3:30] Esusu, because his work [3:32] brings these four lessons to life. [3:34] Samir is the child [3:36] of immigrants who did not have [3:38] access to credit and [3:39] thus were challenged to build wealth. [3:42] He analyzed that system that created [3:44] that challenge and set about [3:46] creating a new business model. [3:48] That new business model provides [3:51] immigrants and low income people [3:53] with a way to build credit history. [3:55] In other words, he's [3:56] created a societal purpose. [3:58] He has created a data platform that [4:02] enables people to build [4:03] credit through on time rent payments, [4:06] data that is captured and [4:08] shared with credit bureaus, [4:09] landlords, and Fannie Mae and Freddie Mac. [4:12] He looked at the system and figured [4:14] out how to go to all these different players [4:16] together to deliver for his customers. [4:20] He creates value for everyone in the system, [4:23] including the renters who [4:25] now have access to credit, [4:27] landlords who have better quality tenants, [4:29] credit agencies who have more customers, [4:32] mortgage issuers who have lower risk, [4:35] and the federal government who now [4:37] has help with building economic opportunity, [4:39] thus getting the entire system on board with [4:42] systemic change because it's [4:44] creating value for everyone. [4:46] In a few short years, [4:48] Esusu has unlocked $50,000,000,000 [4:51] in credit for mortgages, [4:53] cars, and education for its customers, [4:56] and has enabled 200,000 [4:58] people to obtain their first credit scores. [5:01] The company is now a $1,000,000,000 [5:03] unicorn with many investors [5:05] including Softbank. [5:07] Everyone wins through Esusu [5:10] solving a societal problem. [5:12] So my final lesson learned, [5:15] don't shy away from the challenges we face. [5:19] Instead, find the place [5:22] where you can focus your efforts, [5:24] embrace the opportunity to lead [5:26] that next generation of [5:28] sustainable innovation impact. [5:30] Best of luck, stay in [5:33] touch and go class of 2025.