Beyond Shareholder Primacy

This remarkable book is a call to consciousness-and action-for individuals, organizations, communities, and nations. Beyond Shareholder Primacy” argues that 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 hope-from the history of capitalism itself. Beyond Shareholder Primacy argues, that capitalism has reformed itself twice before and is poised for a third major reformation. Retelling the origin story of capitalism from the 15th century to the present, Hart argues that a more radical, more sustainable, more just capitalism is possible, and even likely, in our lifetime.

Hart goes on to describe what it will take to move beyond capitalism’s present worship of “shareholder primacy,” including reforms to all major economic institutions. A key requirement 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.

Author Biography

Stuart L. Hart is Professor Emeritus at Cornell University’s Johnson School of Management, where he founded the Center for Sustainable Global Enterprise, and Professor in Residence at the University of Michigan’s Erb Institute for Global Sustainable Enterprise. He is also co-founder and former Director of The Sustainable Innovation MBA program at the University of Vermont’s Grossman School of Business. A Fortune 500 consultant, Hart is one of the world’s top authorities on the implications of environment and poverty for business strategy. He is the author of numerous publications, including the influential book, Capitalism at the Crossroads, 3rd Edition: Next Generation Business Strategies for a Post-Crisis World.