Capitalism at the crossroads

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Can the basic tenets of Capitalism be used to save the world? Next generation business strategies for a post-crisis world.

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Capitalism at the crossroads

  1. 1. Capitalism at the Crossroads Next Generation Business Strategies for a Post-Crisis World Stuart L. Hart. Capitalism at the Crossroads (Upper Saddle River, NJ:© Pearson Education, Inc. Publishing as Wharton School Publishing, 2010). Third Edition
  2. 2. The Long and Winding Road Forties - Sixties 2000 - Present Denial Clean Technology (Oblivious) (Eco-effectiveness) Seventies - Eighties Mid-Eighties – 2000 End-of-Pipe Greening Regulation (Trade-Off) (Eco-efficiency) Stuart L. Hart. Capitalism at the Crossroads (Upper Saddle River, NJ: © Pearson Education, Inc. Publishing as Wharton School Publishing, 2010).6/21/2012 jgillis767@aol.com 2
  3. 3. Indigenous Enterprise The Next Sustainability Challenge Beyond Greening Becoming Indigenous Base of the Radical Pyramid Transactiveness Target the unmet Engage fringe needs stakeholders Clean Technology Native Capability Deploy the Co-invent in- disruptive context solutions sustainable that leverage technologies local knowledge “Alien” “Native” Stuart L. Hart. Capitalism at the Crossroads (Upper Saddle River, NJ: © Pearson Education, Inc. Publishing as Wharton School Publishing, 2010).6/21/2012 jgillis767@aol.com 3
  4. 4. Worlds in Collision: The Business Opportunity Source: Adapted from Hart, S. 1997. “Beyond Greening: Strategies for a sustainable world.” Harvard Business Review, Jan-Feb: 66-76Lower material and energy consumption Develop green products and technology Developed Economies Money Economy Build the skills of Reduce pollution Emerging Economies the poor and the burdens dispossessed Pollution Poverty Megacities Nature’s Economy Depletion Traditional EconomyEnsure sustainable use of nature’s economy Foster village-based entrepreneurship Replenish depleted resources Stuart L. Hart. Capitalism at the Crossroads 6/21/2012 jgillis767@aol.com 4
  5. 5. Shareholder Value Model Building Tomorrow’s Opportunity New Skills Growth Path Repositioning Trajectory Nurturing Engaging Internal External Capabilities Constituencies Cost and Reputation Risk Reduction Legitimacy Managing Today’s Business Stuart L. Hart. Capitalism at the Crossroads6/21/2012 jgillis767@aol.com 5
  6. 6. Shareholder Value Model Tomorrow • Eco-Effectiveness • Sustainable Development • Bio-mimicry • Base of the Pyramid • Leapfrog Technology • Social Entrepreneurship • Sustainable Technology • Urban Reinvestment • Systems Thinking • Radical Transactiveness Internal External • Greening • Corporate Responsibility v • Eco-Efficiency • Industrial Ecology • Pollution Prevention • Lifecycle Management • Sustainable Technology • Green Design • Risk Management • Transparency Today Stuart L. Hart. Capitalism at the Crossroads (Upper Saddle River, NJ: © Pearson Education, Inc. Publishing as Wharton School Publishing, 2010).6/21/2012 jgillis767@aol.com 6
  7. 7. Sustainable Value Framework Source: Adapted from Hart, S. and Milstein, M. 2003. “Creating sustainable value.” Academy of Management Executive, 17(2) 56-69. Tomorrow Drivers Strategy: Strategy: Drivers •Disruption Clean Technology Base of the Pyramid •Population •Clean Tech •Poverty •Footprint • Inequality Innovation & Growth & Repositioning Trajectory Internal Sustainable External Value Strategy: Strategy: Drivers Pollution Prevention Product Stewardship Drivers •Pollution •Civil Society •Consumption •Transparency •Waste Cost & Reputation & • Connectivity Risk Reduction Legitimacy Today Stuart L. Hart. Capitalism at the Crossroads (Upper Saddle River, NJ: © Pearson Education, Inc. Publishing as Wharton School Publishing, 2010).6/21/2012 jgillis767@aol.com 7
  8. 8. Path to Inclusive Commerce Insufficient Alien Beyond Becoming Greening •Pollution Greening Indigenous prevention •Clean •Native Sustainable •Product technology capability Value stewardship •Base of the •Embedded pyramid innovation • Continuous • Disruptive • Business improvement technology co-creation • Incremental • Leapfrog • Mutual value change innovation creation • Rationalize • Restructure • Incubate new industry industry industry Stuart L. Hart. Capitalism at the Crossroads6/21/2012 jgillis767@aol.com 8
  9. 9. Veritas6/21/2012 jgillis767@aol.com 9

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