Book Review

Reimagining Capitalism in a World on Fire

By: Rebecca Henderson | Category: Unkown category | Year: 2020 ISBN: 9781541730137

A renowned Harvard professor debunks prevailing orthodoxy with a new intellectual foundation and a practical pathway forward for a system that has lost its moral and ethical foundation in this "powerful" book (Daron Acemoglu). Free market capitalism is one of humanity's greatest inventions and the greatest source of prosperity the world has ever seen. But this success has been costly. Capitalism is on the verge of destroying the planet and destabilizing society as wealth rushes to the top. The time for action is running short. Rebecca Henderson's rigorous research in economics, psychology, and organizational behavior, as well as her many years of work with companies around the world, gives us a path forward. She debunks the worldview that the only purpose of business is to make money and maximize shareholder value. She shows that we have failed to reimagine capitalism so that it is not only an engine of prosperity but also a system that is in harmony with environmental realities, striving for social justice and the demands of truly democratic institutions. Henderson's deep understanding of how change takes place, combined with fascinating in-depth stories of companies that have made the first steps towards reimagining capitalism, provides inspiring insight into what capitalism can be. With rich discussions of how the worlds of finance, governance, and leadership must also evolve, Henderson provides the pragmatic foundation for navigating a world faced with unprecedented challenge, but also with extraordinary opportunity for those who can get it right.

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Review:

Sue C.
rated it
February 10, 2021 4:00 am
This book is full of inspiring case studies, but the big question, as you have alluded to, is how will these ideas be acceptable to businesses. I think it's possible and definitely worth trying, but as you said, it might take a "tsunami" to change stockholders' mindsets.
Mary Buxton
rated it
February 3, 2021 7:16 am
Chapters 1: I am glad that her course has become so popular. Teaching the awareness and values in the people who will be pulling the economic levers in the future will help sustain whatever we can accomplish now. Chapter 2: As usual, I am new to so many of the concepts in these books we've read ...
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and this time, it's economics. The story of the revolutionary manager at the NG waste company in Norway made me think of how hard and risky change can be, especially on a big group scale where money is involved. That man was a hero of sustainability for the challenges he faced. These other points of systemic intervention mentioned like the need for proactive management that includes purpose driven workers and the need for change in stockholder mindset seemed like it might take a tsunami to make happen. However, I do know that some companies, like Patagonia, do this voluntarily. The outdoors is their business partner. And the Nike example of waging an across industy campaign to share responsibility for eliminating child labor was impressive and motivated by the financial risk of bad publicity. I have to finish Chapter 2 but wanted to record my thoughts as I read along this time.
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