Reimagining Capitalism in a World on Fire audiobook cover - How Business Can Save the World

Reimagining Capitalism in a World on Fire

How Business Can Save the World

Rebecca Henderson

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Management & LeadershipEconomics

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Reimagining Capitalism in a World on Fire
The Problem with Shareholder Primacy+
Reforming Corporate Finance+
Purpose-Driven Business Models+
Collective Action & Legislation+
Championing Social Justice+
Achieving Lasting Change+

Quiz — Test Your Understanding

Question 1 of 8
According to the text, what is the primary negative consequence of businesses strictly following Milton Friedman's philosophy of prioritizing shareholder returns?
  • A. It leads to an overreliance on government subsidies to maintain profitability.
  • B. It drives businesses to prioritize short-term profits at the expense of the planet and long-term stability.
  • C. It causes companies to invest too heavily in untested, innovative technologies.
  • D. It creates a system where employees have too much power over corporate decision-making.
Question 2 of 8
How did Erik Osmundsen transform the Norwegian waste disposal company Norsk Gjenvinning into an ethical and profitable business?
  • A. By lobbying the Norwegian government for stricter waste disposal regulations.
  • B. By firing the entire executive board and replacing them with environmental scientists.
  • C. By implementing a zero-tolerance policy on corruption, hiring outside the industry, and investing in new recycling technology.
  • D. By outsourcing the waste collection to independent contractors to reduce corporate liability.
Question 3 of 8
Which of the following is mentioned as a strategy for businesses to avoid the pressure of short-term investor demands?
  • A. Issuing dual-class shares to limit the voting power of everyday investors.
  • B. Refusing to publicly disclose any financial data to competitors.
  • C. Transitioning from a publicly traded company to a government-owned enterprise.
  • D. Paying dividends exclusively in the form of company products rather than cash.
Question 4 of 8
Why did Nike form the Sustainable Apparel Coalition with other large firms?
  • A. To pool resources for a massive global marketing campaign.
  • B. To ensure that competitors would not gain an economic advantage by continuing to use exploitative child labor.
  • C. To lobby against environmental regulations that were increasing manufacturing costs.
  • D. To create a monopoly on synthetic materials used in athletic wear.
Question 5 of 8
What economic rationale drove Unilever's Lipton Tea to commit to purchasing 100 percent sustainably grown tea?
  • A. Sustainable tea was significantly cheaper to purchase on the global commodities market.
  • B. The company received massive tax breaks from the government for going green.
  • C. Tea farming is highly vulnerable to global warming, meaning climate inaction would eventually make the business unviable.
  • D. They planned to sell the sustainable farming technology to rival beverage companies.
Question 6 of 8
What motivated Aetna CEO Mark Bertolini to raise the company's minimum wage to $16 per hour?
  • A. A new federal law mandated a $16 minimum wage for all healthcare companies.
  • B. He wanted to instill a shared purpose and believed financially secure employees would provide better care to clients.
  • C. The company was facing a massive labor strike and needed to appease union leaders quickly.
  • D. He wanted to artificially inflate the company's operating costs to avoid a corporate buyout.
Question 7 of 8
How did the business community react to the 2016 'bathroom bill' passed by the North Carolina government?
  • A. They remained completely neutral to avoid alienating customers on either side of the political spectrum.
  • B. They actively supported the bill by funding the campaigns of the lawmakers who drafted it.
  • C. They used the legislation as an excuse to relocate their headquarters to states with lower corporate taxes.
  • D. They issued statements opposing the bill and applied mounting pressure until it was partially revoked.
Question 8 of 8
According to the book's final chapters, what is a fundamental truth about achieving real, progressive change in the business world and society?
  • A. It relies almost entirely on the sudden, disruptive actions of a single charismatic leader.
  • B. It is a gradual process that relies heavily on the quiet, day-to-day work of many anonymous people.
  • C. It only occurs when a company faces imminent bankruptcy and has nothing left to lose.
  • D. It is impossible to achieve unless a company prioritizes short-term profits above all else.

Reimagining Capitalism in a World on Fire — Full Chapter Overview

Reimagining Capitalism in a World on Fire Summary & Overview

Reimagining Capitalism in a World on Fire (2020) asks us to rethink the way our economic system functions if we’re to survive our current crises, like climate change, inequality, and authoritarian populism. In this guide to the future, Rebecca Henderson describes how we must instill purpose into our business ventures, so that they create shared value, rather than merely shareholder value.

Who Should Listen to Reimagining Capitalism in a World on Fire?

  • Business leaders and CEOs looking to change the world
  • Economists and academics interested in rethinking capitalism
  • Anyone interested in the world of the future

About the Author: Rebecca Henderson

Rebecca Henderson is an economist and the John and Natty McArthur University Professor at Harvard, where she teaches the popular Reimagining Capitalism course. She’s also a board member at Amgen and IDEXX Laboratories, both S&P 500 Companies.

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