Better Business Makes the Greater Good
What is a business for? On day one of an economics course a new student is taught the answer: to maximize shareholder profit. But this single idea that pervades all our thinking about the role of the corporation, is fundamentally wrong, argues Colin Mayer. Constraining the firm to a single narrow objective has had wide-ranging and damaging conseque...
2020-01-24T00:00:00.000ZProsperity, by Oxford economist Colin Mayer, argues that “a corporation finds profitable solutions to the challenges of people and the planet,” Nadella explained. “The key word is ‘profitable,’ because we do know that capitalism does have the ability to allocate resources in the most efficient way. But the other key word is ‘the challenges of people and the planet.’ It’s not about creating more challenges to people and the planet but to have real solutions to the problems. I like that. – source