Beyond Shareholder Primacy: Remaking Capitalism for a Sustainable Future

This remarkable book is a call to consciousness--and action--for individuals, organizations, communities, and nations. Beyond Shareholder Primacy" rethinks the story of capitalism and shows us how to live and do business in ways that respect our neighbors near and far, and the planet we all share.

The problem is, our current Milton Friedman-style "shareholder primacy capitalism," as taught in business schools and dogmatically embraced around the world, has become dangerous for society, the climate, and the planet, and economically unnecessary. But there are surprising reasons for optimism. Beyond Shareholder Primacy argues, that capitalism has reformed itself twice before and is poised for a third major reformation.

How can the world free itself of the destructive narrative and assumptions surrounding shareholder primacy? Aren't business leaders required to put shareholder interests before all other considerations? Stuart L. Hart begins by retelling the origin story of capitalism from the 15th century to the present, in a way that makes possible--and even likely--a far more hopeful future. An authentic, "sustainable capitalism" is attainable in our lifetime.

Hart goes on to describe what it will take to create a reformed, sustainable capitalism, with major changes to all major economic institutions. A key principle is eliminating the "externalities" (or collateral damage) of our current shareholder capitalism. Sustainable capitalism will explicitly incorporate the needs of society and the planet, include a financial system that allows leaders to prioritize the planet, reorganize business schools around sustainable management thinking, and enable banks corporations not just to stop ignoring the damage they cause, but actually begin to create positive impact.