Capitalism at the Crossroads: Aligning Business, Earth, and Humanity

by Stuart L. Hart, Al Gore (Foreword)

" Capitalism at the Crossroads is built on strong theoretical underpinnings and illustrated with many practical examples. The author offers a pioneering roadmap to responsible macroeconomics and corporate growth."
- Clayton Christensen , Professor of Business Administration, Harvard Business School and author of The Innovator's Dilemma

"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 2007 Nobel Peace Prize recipient

" Capitalism at the Crossroads is a practical manifesto for business in the twenty-first century. Professor Stuart L. Hart provides a succinct framework for managers to harmonize concerns for the planet with wealth creation and unambiguously demonstrates the connection between the two. This book represents a turning point in the debate about the emerging role and responsibility of business in society."
- C.K. Prahalad , Ross School of Business, University of Michigan, co-author of Competing for the Future and author of The Fortune at the Bottom of the Pyramid

"Stuart Hart was there at the beginning. Years ago when the term ‘sustainability’ had not yet reached the business schools, Stuart Hart stood as a beacon glowing in the umbrage. It is clear commerce is the engine of change, design the first signal of human intention, and global capitalism is at the crossroads. Stuart Hart is there again; this time lighting up the intersection."
- William McDonough , University of Virginia, co-author of Cradle to Cradle

"Professor Hart is on the leading edge of making sustainability an understandable and useful framework for building business value. This book brings together much of his insights developed over the past decade. Through case studies and practical advice, he argues powerfully that unlimited opportunities for profitable business growth will flow to those companies that bring innovative technology and solutions to bear on some of the world’s most intractable social and environmental problems."
- Chad Holliday , Chairman and CEO, DuPont

" Capitalism at the Crossroads clearly reveals the essence of what sustainability means to today’s business world. Hart’s analysis that businesses must increasingly adopt a business framework based on building sustainable value speaks to the entire sustainability movement’s relevance. Sustainability is more than today’s competitive edge; it is tomorrow’s model for success."
- Don Pether , President and CEO, Dofasco Inc.

"Stuart Hart has written a book full of big insights painted with bold strokes. He may make you mad. He will certainly make you think."
- Jonathan Lash , President, The World Resources Institute

"A must-read for every CEO—and every MBA."
- John Elkington , Chairman, SustainAbility

"This book provides us with a vast array of innovative and practical ideas to accelerate the transformation to global sustainability and the role businesses and corporations will have to play therein. Stuart Hart manages to contribute in an essential way to the growing intellectual capital that addresses this topic. But, beyond that, the book will also prove to be a pioneer in the literature on corporate strategy by adding this new dimension to the current thinking."
- Jan Oosterveld , Professor, IESE Business School, Barcelona, Spain Member, Group Management Committee (Ret.), Royal Philips Electronics

" Capitalism at the Crossroads captures a disturbing and descriptive picture of the global condition. Dr. Hart constructs a compelling new corporate business model that simultaneously merges the metric of profitability along with societal value and environmental integrity. He challenges the corporate sector to take the lead and to invoke this change so that the benefits of capitalism can be shared with the entire human community worldwide."
- Mac Bridger , CEO of Tandus Group

"Stuart L. Hart makes a very important contribution to the understanding of how enterprise can help save the world’s environment. Crucial reading."
- Hernando de Soto , President of The Institute for Liberty and Democracy and author of The Mystery of Capital

"Stuart Hart’s insights into the business sense of sustainability come through compellingly in Capitalism at the Crossroads. Any businessperson interested in the long view will find resonance with his wise reasoning."
- Ray Anderson , Founder and Chairman, Interface, Inc.

"This stimulating book documents the central role that business will play in humanity’s efforts to develop a sustainable global economy. Professor Hart presents an attractive vision of opportunity for those corporations that develop the new technologies, new business models, and new mental frames that are essential to a s...

Genres: Economics, Business, Nonfiction, Sustainability, Environment, School

260 pages, Paperback

First published July 18, 2007

Reviews

[Kristen · Rating 4 out of 5]

This book is much better than the other "business should have social responsibilities" books I have read. I think the reason I like it is that it's arguement is not "business should stop trying to make as much money as possible" (which I find unrealistic). Instead, Hart gives the reader specific recommendations and cites detailed examples, making it possible for the first time (for me, at least), to believe that being socially responnsible may actually be cost effecive, and therefore, possible. I especially enjoy his focus on truly innovative new technology, versus simply "preventing pollution". I am also intersted in his ideas as to how business can reach out to the 4 billion extremely poor people in the world and help make thier lives better while, at the same time, seeing a profit. Bottom of the Pyramid servicing is not exactly a new idea, but Hart got me thinking about exisiting business models and the changes that would be needed to make them viable at the BoP.

[Boognish3 · Rating 3 out of 5]

There were some interesting suggestions, frameworks and insights, but it became repetitive and some phrasings seemed condescending, for lack of a better way to describe them.
The good - frameworks to update business models to facilitate broader sustainability efforts and include the "base of the pyramid" (lower-income residents) in product development
The bad - repetitive, verbose and I got sick of seeing DuPont held up as a shining example when they continue, to this day, to knowingly harm residents with their practices.
If you can find articles by Hart, they are definitely worth a read if you are knew to sustainability and/or looking for ideas on updating business models for large corporations.

[Ben · Rating 3 out of 5]

Ran out of steam after first half. lots of reiteration and referencing the same case studies. but:

solid book for understanding sustainability and business. good to learn the key players with Grameen and HLL. some strategic insights about how to lead base of the pyramid initiatives in an organization. very good book for an introduction to sustainability!

[ARKE SINGH · Rating 3 out of 5]

Good

[Sheehan · Rating 3 out of 5]

Content and thematically very good, very positive, somewhat encouraging.

This book was a referral from my father-in-law, who after years of fit and start discussions about the efficacy (or lack there of) of capitalism, gives me this book and advises, "Read this...and pass along to your brothers (in-law)" Capitalism at the Crossroads is ironically enough, essentially a tame business-writing version of the same polemical arguments I have read been reading for years in more left-leaning periodicals like Adbusters...

So I'm happy to report that Baba is definitely "hep" to finding alternative solutions to current intractable political/economic issues. This outcome alone pretty much makes plodding through a few hundred pages of business-speak to articulate why business will only thrive if it adopts a sustainable, bottom-up engagement with the totally marginalized communities of the planet a bit more bearable.

As far as I'm concerned, the best part of this book is the jump-off for future dialogue with Baba...

[Lester · Rating 1 out of 5]

First Chapters rather confused and incoherent. Develops a fictive and not very believable model of 3 'economies' and 3 'markets'. Talks about the need for transnational business, value propositions for shareholders etc. the model assumes a future for capitalism where growth and profit is still the accepted norm. Inequality was noted as an important byproduct, but no solution to this provided.

About halfway through the book, the example of the automotive industry moving to 'clean' models and in particular the GM fuel cell concept was held up as an excellent example of Systems Thinking. The author seems to have neglected the fact that more electrical vehicles rely on limited mined resources (mostly in China) and that the balance of CO2 required to transport materials and build an electric vehicle is far higher than a conventional vehicle. I gave up at this point, as the basis for the book fell apart through misinformation and lack of new ideas.

[Shirley · Rating 4 out of 5]

I found this to be a really helpful primer w.r.t. sustainability, very clearly bringing all of the pieces together, while most reads are about one particular area, i.e. CSR, bottom/base of the period, greening. A great build upon Prahalad's BoP work. Hopeful. Practical.

(And of course... makes a wolverine proud. ;p)

[Jiwa Rasa · Rating 4 out of 5]

Buku ini sangat menarik kerana menyalahkan kapitalism atas bencana yang melanda dunia. Tamak haloba menyebabkan kehancuran alam, keganasan dan pembangunan tidak seimbang berlaku.

Pembangunan berimbang adalah jawabannya. Bottom of Pyramid adalah sasarannya. Bisnes boleh memacu kemajuan dan keamanan duni seperti yang telahdibuktikan oleh Grameen.

[Carolyn Dobervich · Rating 4 out of 5]

This is a book the world needs now. It is rich with examples of ways business can profitably draw down from the danger of extreme climate change. I read this awhile ago but I recall that Hart advises many multinational companies, large ones, and he makes the case that developed markets can’t consume much more. But developing regions and non polluting technology can keep them thriving.

[Ellen · Rating 4 out of 5]

I really liked this book because it lays out a blueprint for how businesses can adapt and profit from sustainable enterprise and working toward improving the quality of life for the global population.

[Jose Manic · Rating 3 out of 5]

It's an argument aimed at business leaders, I think, to make them more responsible and green. The way the moral arguments are sometimes embroiled with the profit-motive ones was unsatisfying to me. But perhaps I am too used to package politics.

[Alessandra · Rating 3 out of 5]

A must read for me since I will be studying under this guys next year. I thought it was fascinating, but I'm sure most people aren't as nerdy as me.

[Rae · Rating 4 out of 5]

This book so interesting!! I definitely recommend it, especially if you love sustainability and saving the environment.

[Robert · Rating 3 out of 5]

Stuart Hart has a perspective on sustainable business that is influenced by the Bottom of the Pyramid and international development.

[Brent · Rating 4 out of 5]

persuasive, non-judgmental, practical arguments for companies to move beyond a strict bottom line quarter profits and into sustainability in the short/long term and inside/outside itself.