Reimagining Capitalism in a World on Fire

Corporations and industries must shift the capitalist paradigm from maximizing shareholder value to “build[ing] great products in the service of the social good,” according to this lucid and optimistic manifesto by Harvard University business professor Henderson (coeditor, Leading Sustainable Change). To combat “massive environmental degradation, economic inequality, and institutional collapse,” Henderson identifies five key areas of reform: creating shared value between businesses and consumers; building “purpose-driven” organizations; establishing financial metrics to measure the environmental and social impact of business practices; cooperating on sustainable, self-regulatory standards across whole industries; and private sector support for democratic reforms. Henderson backs her claim that such changes are possible by citing numerous examples, including Unilever’s profitable development of a sustainable tea supply chain, King Arthur Flour’s commitment to empowering employees, and the partial repeal of North Carolina’s “bathroom bill” under public and corporate pressure. Though Henderson’s case to industry leaders is strong, her suggestions for general readers (eat less meat, “get political,” become “values-driven ‘intrapreneurs’” within their companies) feel scattershot. Nevertheless, this accessible and richly detailed call to action offers a clear vision for policy makers and business executives who agree with Henderson that the private sector has an obligation to tackle the world’s biggest problems. Daniel Stern, the Stern Strategy Group. (Apr.)