New Books in Economics Colin Mayer, "Capitalism and Crises: How to Fix Them" (Oxford UP, 2024)
Jan 22, 2026
Colin Mayer, Emeritus Professor of Management Studies at Oxford, dives into how capitalism can address looming global crises. He critiques the misconception that profit must come from harm, proposing a moral business ethic of 'profit without harm.' Mayer contrasts this with traditional views of shareholder value, emphasizing corporate accountability. He discusses models like Denmark's enterprise foundations that align ownership with societal benefits and highlights the role of technology in enhancing corporate transparency. Excitingly, he advocates for reshaping business education to prioritize purpose-driven curricula.
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Profit Without Harm As A Business Principle
- Colin Mayer reframes the golden rule for business as "profit without harm," meaning firms should not profit from imposing harm on others.
- He argues markets fail unless firms incur costs to avoid or remedy harms they create, or else bad firms drive out good ones.
Leverage Public Procurement To Shape Behavior
- Use public procurement and licensing to reward companies that embed purpose into their legal articles and governance.
- Require suppliers to commit legally to profit from solving, not creating, problems to shift incentives at scale.
Ownership Determines Corporate Purpose
- Ownership structure shapes corporate purpose: many global firms have dominant blockholders like families or foundations, not dispersed shareholders.
- Stable, long-term owners (families, enterprise foundations) can align firms to solve social problems rather than chase short-term returns.
