Reimagining Capitalism
What is capitalism? Is it the greatest source of prosperity and freedom the world has ever seen or a menace on the verge of destroying the planet and our society? Rebecca Henderson argues that capitalism is the only solution to the massive problems that we face and explores the ways in which the private sector can help to reimagine capitalism so that it works for … [ Read more ]
Content: Article | Author: Rebecca Henderson | Source: Management and Business Review (MBR) | Subjects: Capitalism, Economics, Social Responsibility (ESG)
Rebecca Henderson
Scholars came to distinguish between “inclusive” and “extractive” societies. Extractive regimes concentrate both political and economic power in the hands of an elite few. Healthy inclusive societies, by contrast, rest on three foundations: a free market; a strong civil society; and a democratically elected, transparent, capable, and responsive government. Together these three institutions hold each other accountable, balancing the power of the free market with … [ Read more ]
Content: Quotation | Author: Rebecca Henderson | Source: Management and Business Review (MBR) | Subjects: Capitalism, Economics
Rebecca Henderson
Markets require adult supervision. Markets only lead to prosperity and freedom when they are genuinely free and fair. Intuitively, if firms can dump toxic waste into rivers, lie to their consumers, and form alliances to fix prices, there is no guarantee that maximizing profits will increase either aggregate wealth or individual freedom.
Content: Quotation | Author: Rebecca Henderson | Source: Management and Business Review (MBR) | Subjects: Capitalism, Economics
Rebecca Henderson
The rule of law, well-designed corporate governance, anti-corruption safeguards, democratic government, a free media, and appropriate financial regulations are critical to enabling free markets to stimulate high quality development.
Content: Quotation | Author: Rebecca Henderson | Source: Management and Business Review (MBR) | Subjects: Capitalism, Economics
Rebecca Henderson
The deepest moral commitments of capitalism require that they help to sustain the health of the institutions on which the free market relies. If firms exist to maximize prosperity and social welfare, they have a moral duty to act as if there were a price for carbon, for example, even when there is no price in place. If firms exist to maximize freedom of opportunity, … [ Read more ]
Content: Quotation | Author: Rebecca Henderson | Source: Management and Business Review (MBR) | Subjects: Capitalism, Economics