Reimagining Capitalism in a World on Fire

Three things are important for society. Preserving the Earth—that’s why we’re active in all kinds of environmental projects. Then, how people cope with each other on the Earth—that’s why we’re active in fair trade, in microfinance. And finally the development of each individual—that’s why we’re active in culture. This also makes us different from o

More broadly, the right kind of ESG metrics could provide a richer language for talking about how doing the right thing can generate financial returns. They might lengthen time horizons and help both managers and investors unpack the dynamics of the relationship between doing good and doing well. When does it make sense to invest in human capital?

participants were interested in a system of spiritual philosophy developed by the philosopher-scientist Rudolf Steiner, who conceived of society as comprising three realms: economic, rights (including politics and law), and cultural-spiritual. He believed that a healthy society depended on a balance among the three domains.

In one survey nearly 80 percent of chief financial officers said they would decrease spending on research and development to meet earnings targets, and just over 55 percent said they would delay a new project to meet earnings targets even if it meant a (small) sacrifice in value. In another, 59 percent of executives would delay a high net present v

But a potluck only works if everyone pitches in. Taking the trouble to cook an elaborate lasagna is like taking the trouble to make sure that your suppliers are taking care of the environment and following good labor practices. There’s always a temptation to free ride—to arrive with a packet of stale cookies. If everyone thinks that no one else is

The world’s two biggest traders in agricultural commodities, for example, have more revenue between them than all four thousand agricultural cooperatives.62 The two largest American banks have more revenue between them than all fifty thousand financial cooperatives.63 But their existence suggests that customer ownership might be a crucial piece of

But Paul stuck to his guns, later joking that he took the plunge because “they couldn’t fire me on my first day.” When Neath raised the question of sustainable palm oil with him, his immediate response was “We have to do it and we can’t do it alone: let’s socialize the problem.”

Everyone must breathe to live, but the purpose of living is not breathing.2 In today’s world, reimagining capitalism requires embracing the idea that while firms must be profitable if they are to thrive, their purpose must be not only to make money but also to build prosperity and freedom in the context of a livable planet and a healthy society.

A second option is to rely on impact investors—or on one’s employees or customers—for funding. This is a solution with many strengths, but it may be challenging to take it to scale. The third is to change the rules that govern corporations to shelter managers from investor pressure.