Capitalism at Risk : Rethinking the Role of Business

The spread of capitalism worldwide has made people wealthier than ever before. But capitalism’s future is far from assured. The global financial meltdown of 2008 nearly produced a great depression. Economies in Europe are still teetering. Income inequality, resource depletion, mass migrations from poor to rich countries, religious fundamentalism—these are just a few of the threats to continuing prosperity. How can capitalism be sustained? And who should spearhead the effort? Critics turn to government. In __Capitalism at Risk__, Harvard Business School professors Joseph Bower, Herman Leonard, and Lynn Paine argue that while governments must play a role, businesses should take the lead. For enterprising companies—whether large multinationals, established regional players, or small start-ups—the current threats to market capitalism present important opportunities.__Capitalism at Risk__ draws on discussions with business leaders around the world to identify ten potential disruptors of the global market system. Presenting examples of companies already making a difference, the authors explain how business must serve both as innovator and activist—developing corporate strategies that effect change at the community, national, and international levels.Filled with rich insights, __Capitalism at Risk__ presents a compelling and constructive vision for the future of market capitalism.

The spread of capitalism worldwide has made people wealthier than ever before. But capitalism’s future is far from assured. The global financial meltdown of 2008 nearly produced a great depression. Economies in Europe are still teetering. Income inequality, resource depletion, mass migrations from poor to rich countries, religious fundamentalism—these are just a few of the threats to continuing prosperity.

How can capitalism be sustained? And who should spearhead the effort? Critics turn to government. In Capitalism at Risk, Harvard Business School professors Joseph Bower, Herman Leonard, and Lynn Paine argue that while governments must play a role, businesses should take the lead. For enterprising companies—whether large multinationals, established regional players, or small start-ups—the current threats to market capitalism present important opportunities.

Capitalism at Risk draws on discussions with business leaders around the world to identify ten potential disruptors of the global market system. Presenting examples of companies already making a difference, the authors explain how business must serve both as innovator and activist—developing corporate strategies that effect change at the community, national, and international levels.

Filled with rich insights, Capitalism at Risk presents a compelling and constructive vision for the future of market capitalism.

Contents 6 Preface and Acknowledgments 8 Part One The Future of Market Capitalism 12 1 Introduction 14 2 A Projection of Global Prospects 30 3 Threats to the Global Market System 54 4 Seeing the Threats as Systemic 96 Part Two How Business Can Lead 114 5 The Business Response 116 6 Leading Through Innovative Business Models 136 7 Leading Through Institutional Activism 164 8 Rethinking the Role of Business 196 Appendix Participants in Regional Business Leader Forums 224 Notes 228 Index 238 About the Authors 264 Introduction : an inquiry into the future of market capitalism A projection of global prospects Threats to the global market system Seeing the threats as systemic The business response : five possible roles Leading through innovative business models Leading through institutional activism Rethinking the role of business. Identifies ten potential dangers to the global market system, providing examples of companies that are thriving and describing how a businesses must develop corporate strategies that are innovative and strengthen institutions at community, national, and international levels