Prosperity audiobook cover - Better Business Makes the Greater Good

Prosperity

Better Business Makes the Greater Good

Colin Mayer

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Categories:
Management & LeadershipEconomicsSociety & Culture

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Prosperity
The Current Paradigm+
Loss of Community Connection+
Redefining Purpose & Governance+
New Performance Metrics+
Transformation Through Policy+

Quiz — Test Your Understanding

Question 1 of 6
According to the text, what is the core premise of the Friedman doctrine that has dominated business education for over 50 years?
  • A. A corporation's primary purpose is to solve societal problems while minimizing environmental impact.
  • B. The sole social responsibility of a business is to increase its profits within the scope of the law.
  • C. Corporations must balance the financial interests of shareholders with the well-being of the local community.
  • D. Businesses should be legally required to report on their natural, social, and human capital alongside financial assets.
Question 2 of 6
What historical shift caused corporations to primarily lose their long-term commitment to local communities?
  • A. The transition from local market squares to transnational digital economies.
  • B. The introduction of external investors who lacked an intergenerational interest in the company.
  • C. The implementation of strict government regulations that restricted family-owned monopolies.
  • D. The widespread adoption of corporate social responsibility commitments that lacked legal enforcement.
Question 3 of 6
How does the author define the true purpose of a corporation?
  • A. To maximize financial returns for its external investors and shareholders.
  • B. To establish a normative purpose that serves as a tokenistic gesture for public relations.
  • C. To solve a problem faced by the community, with shareholder profit being a byproduct.
  • D. To follow corporate governance best practices that protect against economic crises.
Question 4 of 6
According to the text, how should a corporation redefine its understanding of its 'customer base'?
  • A. By focusing exclusively on the direct consumers who purchase its products or services.
  • B. By shifting focus primarily toward institutional investors and external shareholders.
  • C. By including everyone its activities impact, such as employees, suppliers, the community, and the environment.
  • D. By targeting only the demographic that aligns directly with its normative purpose commitments.
Question 5 of 6
Under the proposed new metrics for business performance, how should a corporation account for damage it causes to the environment?
  • A. It should be recorded as a liability in the company's profit and loss statements.
  • B. It should be ignored in financial spreadsheets but detailed in a separate sustainability report.
  • C. It should be classified as an unavoidable operational asset to accurately reflect business costs.
  • D. It should be subsidized by national economic policy to protect shareholder dividends.
Question 6 of 6
Why do current corporate commitments regarding nonfinancial assets (like sustainability and inclusion) often fail to have a meaningful impact?
  • A. They are fundamentally opposed to the original structure of corporate law established in ancient Rome.
  • B. Shareholders actively vote against them during annual governance meetings.
  • C. They are too heavily regulated by enforcing legislation, which ends up stifling business innovation.
  • D. They lack formal contracts, progress metrics, clear responsibility, and consequences for failure.

Prosperity — Full Chapter Overview

Prosperity Summary & Overview

Prosperity (2018) examines how business thinking has led to our current state of social, political, and environmental disaster. Drawing on historical, legal, and economic knowledge, it presents a radical new framework in which both corporations and the broader community can flourish together.

Who Should Listen to Prosperity?

  • Business leaders and company directors
  • MBA students
  • Economic policy developers wanting to fix our broken system

About the Author: Colin Mayer

Colin Mayer is a business expert and professor at the University of Oxford. For over 20 years, he was a director and chairman of Oxera – one of the largest economic consultancies in Europe. He is the author and coauthor of several books, and was the founding editor of the Oxford Review of Economic Policy. 

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