Capitalism at the Crossroads

Series
Wharton School
Author
Stuart L. Hart  
Publisher
Pearson
Cover
Softcover
Edition
3
Language
English
Total pages
304
Pub.-date
June 2010
ISBN13
9780137042326
ISBN
0137042329
Related Titles


Product detail

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9780137042326
Capitalism at the Crossroads
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Description

The multiple economic crises of the past two years demonstrate more clearly than ever that the age of "mercenary" capitalism is over: we must finally embark on a new age of sustainable, stakeholder-based capitalism. While enlightened executives and policymakers understand the critical need for change, few have tangible plans for making it happen. Stuart L. Hart, one of the world's leading experts on sustainable capitalism, presents clear roadmaps and strategies for identifying sustainable products and technologies that can drive new growth while also helping to solve today's key social and environmental problems. This edition contains

  • Thoroughly updated case studies and examples
  • Extensive coverage of incubating clean, green technologies at the "base of the pyramid" and "trickling them up" to the top
  • A new Preface demonstrating how recent economic crises stem from unsustainable policies and strategies and what can be done about it
  • New analyses of oil price spikes and the sub-prime crisis through the lens of sustainable capitalism
  • Updates on breakthrough "bottom of the pyramid" initiatives in the U.S. and beyond
Drawing on his experience consulting with leading companies and NGOs worldwide, Hart shows how to overcome the pitfalls of traditional 'greening' and 'sustainability' strategies, and recharge innovation, growth, and profitability in your enterprise.

Features

Shows how environmental and recent economic crises have stemmed from failed corporate strategies and provides specific global solutions.

 

  • Powerful new ways to improve business growth while also improving the quality of life.
  • Discusses the oil price spike, the world food shortage, and the sub-prime crisis as failed business strategies and provides detailed solutions.
  • New discussions of The Water Initiative (a start up company in Mexico focused on the underserved); and Enterprising Health (a similar US based project).
  • New to this Edition

    This edition contains:

    • Thoroughly updated case studies and examples
    • Extensive coverage of incubating clean, green technologies at the "base of the pyramid" and "trickling them up" to the top
    • A new Preface demonstrating how recent economic crises stem from unsustainable policies and strategies and what can be done about it
    • New analyses of oil price spikes and the sub-prime crisis through the lens of sustainable capitalism
    • Updates on breakthrough "bottom of the pyramid" initiatives in the U.S. and beyond

    Table of Contents

    About the Author . . . xi

    Acknowledgments . . . xii

    Preface: Al Gore, Former Vice President of the United States . . . xxiii

    Foreword: Fisk Johnson, Chairman and CEO, S. C. Johnson & Son, Inc. . . . xxvi

    PART ONE: MAPPING THE TERRAIN   1

    Prologue: Reinventing Capitalism for the Post-Crisis World . . . 3

    The Great Disruption . . . 4

    The Best of Times, The Worst of Times . . . 5

    Environmental Meltdown? . . . 8

    The Demise of Development . . . 10

    Implications for Corporations . . . 13

    The Fork in the Road . . . 15

    Chapter 1: From Obligation to Opportunity . . . 19

    The Great Trade-Off Illusion . . . 21

    The Greening Revolution . . . 23

    Shattering the Trade-Off Myth. . . . 25

    Breaking Free of Command-and-Control . . . 26

    Beyond Greening . . . 30

    Raging Against the Machine . . . 33

    Smart Mobs Versus Smart Globalization . . . 35

    Becoming Indigenous . . . 38

    The Road Ahead . . . 41

    Overview of the Book . . . 43

    Chapter 2: Worlds in Collision . . . 51

    The Three Economies . . . 53

    Collision Course . . . 60

    New Lenses on the Global Market . . . 62

    Developed Markets: Reducing Corporate Footprint . . . 65

    Emerging Markets: Avoiding the Collision . . . 68

    Traditional Markets: Serving Real Needs . . . 72

    The Value Proposition . . . 76

    Chapter 3: The Sustainable Value Portfolio . . . 79

    Sustainability Buzzwords . . . 80

    Elements of Shareholder Value . . . 81

    The Buzzword Sort . . . 84

    Connecting the Dots: The Sustainable Value Portfolio . . . 87

    Charting the Sustainable Value Portfolio . . . 97

    The Road to Sustainability . . . 99

    Pursuing the White Space. . . . 104

    PART TWO: BEYOND GREENING   109

    Chapter 4: Clean Technology and Creative Destruction . . . 111

    Continuous Improvement Versus Creative Destruction . . . 112

    From Textile Dyes to Biomaterials . . . 118

    Using Carbon Dioxide to Change the World . . . 120

    Developing an Ecomagination . . . 122

    Whole-Systems Thinking . . . 124

    Reinventing the Wheels . . . 128

    Technologies of Liberation . . . 131

    Eating Your Own Lunch . . . 133

    Chapter 5: Innovation from the Bottom-Up . . . 137

    On the Horns of a Dilemma . . . 138

    Birth of BoP. . . 139

    The Tip of the Iceberg . . . 141

    Creative Creation . . . 146

    Driving Innovation from the Base of the Pyramid . . . 149

    Connecting the World. . . 151

    Food, Health, and Hope? . . . 155

    Power to the People . . . 158

    The Great Convergence . . . 162

    A New Development Paradigm . . . 165

    Taking the Great Leap . . . 167

    Chapter 6: Raising the Base of the Pyramid . . . 171

    BoP Pioneers . . . 172

    It's the Business Model, Stupid . . . 173

    Assessing Sustainability Impact . . . 189

    Village Phones: The Triple Bottom Line . . . 192

    The MNC Advantage . . . 196

    A Common Cause . . . 197

    PART THREE: BECOMING INDIGENOUS   201

    Chapter 7: Broadening the Corporate Bandwidth . . . 203

    Learning from Ladakh . . . 204

    The Post-Development Challenge . . . 207

    Radical Transactiveness. . . 211

    Fanning Out: Extending the Scope of the Firm . . . 213

    Fanning In: Integrating Diverse and Disconfirming Information . . . 217

    Expanding Our Concept of the Global Economy . . . 222

    From Alien to Native . . . 224

    Chapter 8: Developing Native Capability . . . 227

    Next Generation Strategies and Skills . . . 229

    Engage First, Design Second . . . 230

    Coinvent Custom Solutions . . . 234

    Fail Small, Learn Big . . . 237

    Fly Under the Radar . . . 239

    Work with Nontraditional Partners . . . 242

    Build Social, Not Legal, Contracts . . . 244

    Moving Beyond the Multinational Model . . . 248

    Chapter 9: Re-Embedding Innovation Strategy . . . 253

    Comparing Apples and Oranges . . . 254

    Toward a Base of the Pyramid Protocol . . . 257

    Learning by Doing . . . 262

    Taking the Initiative on Water . . . 267

    The Three Big Challenges . . . 273

    Leading the Next Great Transformation . . . 276

    Chapter 10: Building the Sustainable Global Enterprise . . . 281

    Making It Happen in the Real World . . . 283

    Aligning the Organization . . . 293

    Building the Cathedral . . . 300

    Postscript . . . 302

    Epilogue: Looking Forward . . . 307

    Draining the Swamp . . . 308

    The Next Tsunami . . . 310

    Who Will Be the Twenty-First Century Watchdog? . . . 312

    Index . . . 315

    Back Cover

    “The central message of Stuart Hart's book is that global business needs to be caring and be committed to preserving the globe's ecological integrity. The ongoing economic slowdown brought about by rampant capitalism, the lessons from which this new edition of the book factors in, has only served to emphasize the urgency for business to adopt the radical transformation of strategy that Stuart has been advocating.”

    -RATAN TATA, Chairman, Tata Group

     

    “A few books change the way you think. Very few change the way you act. Stuart Hart's writings have served as a practical guide, a system of road signs that put new order into the complex business of becoming sustainable. We're learning that we can advance in a meaningful, exciting, and beneficial way. We fully expect that his ideas are guideposts that will mark Dow Corning's road to sustainability leadership.”

    -STEPHANIE BURNS, Ph.D., Chairman, CEO, and President, Dow Corning Corporation

     

    Capitalism at the Crossroads rightly points to capitalism as the most powerful and creative force we have for solving global problems. It is a welcome antidote to widespread ignorance about capitalism as a force for good.”

    -JOHN MACKEY, CEO, Whole Foods Market, and coauthor, Be the Solution

     

    “I hope this book will be able to influence the thought processes of corporations and motivate them to adapt to forthcoming business realities for the sake of their own long-term existence. Besides business leaders, this is a thought-provoking book for the readers who are looking for solutions to capitalism's problems.”

    -MUHAMMAD YUNUS, Founder and Managing Director, Grameen Bank, Bangladesh, and 2006 Nobel Peace Prize recipient

     

    “…a pioneering roadmap to responsible corporate growth.”

    -CLAYTON CHRISTENSEN, Professor, Harvard Business School, and New York Times best-selling author, The Innovator's Dilemma

     

    Reinventing Capitalism and Companies for a Radically New World

     

    Today's era of economic crisis has sent a powerful message: The age of “mercenary” capitalism is ending. We must finally embark on a new age of sustainable, stakeholder-based capitalism. While enlightened executives and policymakers understand the critical need for change, few have tangible plans for making it happen. In Capitalism at the Crossroads, Stuart L. Hart presents new strategies for identifying sustainable products, technologies, and business models that will drive urgently needed growth and help solve social and environmental problems at the same time.

     

    Drawing on his experience consulting with top companies and NGOs worldwide, Hart shows how to craft your optimal sustainability strategy and overcome the limitations of traditional “greening” approaches. In this edition, he presents new and updated case studies from the United States and around the world, demonstrating what's working and what isn't. He also guides business leaders in building an organizational “infrastructure for sustainability”--one that can survive budgeting and boardrooms, recharging innovation and growth throughout your enterprise.

     

    Mapping the terrain: where we stand and where to go from here

    The new business case for pursuing sustainable capitalism

     

    Beyond “greening”

    Implementing sustainability strategies that go far beyond environmental sensitivity

     

    Becoming indigenous: how to build a truly sustainable global enterprise

    How to fully embed your enterprise in the local context--and why you should

     

    Robust organizational blueprints for sustaining sustainability

    Making long-term sustainability work in a short-term world

    Author

    Stuart L. Hart is one of the world's top authorities on the implications of sustainable development and environment for business strategy. He is currently the Samuel C. Johnson Chair in Sustainable Global Enterprise and Professor of Management at Cornell's Johnson Graduate School of Management. He also serves as Distinguished Fellow at the William Davidson Institute (University of Michigan) and President of Enterprise for a Sustainable World. Previously, he taught strategic management and founded both the Center for Sustainable Enterprise (CSE) at the University of North Carolina's Kenan-Flagler Business School and the Corporate Environmental Management Program (now the Erb Institute Dual Master's Program) at the University of Michigan.

     

    Hart's consulting clients range from DuPont and SC Johnson to Unilever and General Electric. He is an internationally recognized speaker and has delivered hundreds of keynote addresses on the topic of sustainable business around the world.

     

    He wrote the seminal article “Beyond Greening: Strategies for a Sustainable World,” which won the McKinsey Award for Best Article in Harvard Business Review in 1997 and helped launch the movement for corporate sustainability. With C.K. Prahalad, he also wrote the groundbreaking 2002 article, “The Fortune at the Bottom of the Pyramid,” which provided the first articulation of how business could profitably serve the needs of the four billion poor in the developing world. He invites readers to email him at slh55@cornell.edu and to visit his website at www.stuartlhart.com.