Re-Imagining Capitalism

Capitalism has been an unprecedented engine of wealth creation for many centuries, leading to sustained productivity gains and long-term growth and lifting an increasing proportion of humanity out of poverty. But its effects, and hence its future, have come increasingly under question: Is capitalism still improving wealth and well-being for the many? Or, is long-term value creation being sacrificed to the pressures of short-termism, with potentially far-reaching consequences for society, the natural environment, prosperity, and global order?Building on a collaboration between the Schulich School of Business and global management consultancy McKinsey & Company, this volume reflects both the urgency of the needed action and the tremendous opportunity to forge consensus and catalyze a lasting movement toward a more responsible, long-term, and sustainable model of capitalism. This unique volume brings together many of the leading proponents for a reformed, re-imagined capitalism from the ?fields of academia, business, and NGOs. Its contributors have been at the forefront of thought and action in regard to the future of capitalism. Both individually and collectively, they provide powerful suggestions of what such a long-term oriented model of capitalism should look like and how it can be achieved. Drawing on their research and professional experience, they write in an accessible style aiming to reach the broad audiences required to turn a re-imagined capitalism into a reality.

1 Dominic Barton, Dezso Horvath and Matthias Kipping: Re-imagining Capitalism for the Long Term: Situating the Volume; Part I. Trailblazing: The Role of Exemplary Leadership; 2 Paul Polman: Re-establishing Trust: Making Business with Purpose the Purpose of Business; 3 Kathleen McLaughlin and Doug McMillon: Business and Society: Reshaping Global Systems; 4 Galen G. Weston: Family Firms and Patient Capital: Thinking in Decades, not Quarters; 5 Monique Leroux: Cooperatives: Stakeholder-oriented by Design, Long-term Focused by Necessity; 6 Ratan N. Tata (with Dirk Matten): Corporate Community Involvement in the 21st Century; 7 Nick Lovegrove and Matthew Thomas: Broad: The Gifts of Breadth in a World Sold on Depth; Part II. Engaging: Broader Views for a Better Capitalism; 8 John Kay: Understanding and Misunderstanding the Triumph of Capitalism; 9 Andrew Crane and Dirk Matten: Engagement Required: The Changing Role of the Corporation in Society; 10 R. Edward Freeman, Bidhan L. Parmar, and Kirsten M. Martin: Responsible Capitalism: Business for the 21st Century; 11 Bryan W. Husted: Being Good and Doing Well: Not as Easy as You Think; 12 Lynn Stout: 'Maximizing Shareholder Value' is an Unnecessary and Unworkable Corporate Objective; 13 John Stackhouse: Narrowcasting: How Media and Political Disruption Changed the Economic Debate; Part III. Advancing: Suggestions for the Ways Forward; 14 Simon Zadek: Imagining a Sustainable Financial System; 15 Robert G. Eccles and Birgit Spiesshofer: Integrated Reporting for a Re-Imagined Capitalism; 16 Edward Waitzer and Douglas Sarro: Reasonable Expectations and Fiduciary Obligations: Legal Pathways to Longer-term Thinking; 17 Gordon L. Clark and Michael Viehs: Corporate Social Responsibility: The Case for Active Ownership by Institutional Investors; 18 Bruce Simpson and Tiffany Vogel: Building the Right Long-term Approach: The Power of Aligning Leadership, Strategy, and Execution; 19 Richard A. Ross and D. Eleanor Westney: A New Way of Thinking About Resource Development: A Values-Based Approach; 20 Shawn Bohen and Gerald Chertavian: Restoring the Capitalist Promise: Opportunities in the U.S. Youth Labor Market; Conclusion; 21 Dezso Horvath and Dominic Barton: Capitalism Re-imagined