EconTalk

Rebecca Henderson on Reimagining Capitalism

Jun 8, 2020
Rebecca Henderson, a Harvard Business School professor and author of "Reimagining Capitalism in a World on Fire," discusses transformative ideas for capitalism. She critically examines how an obsession with shareholder value undermines societal stability. Henderson emphasizes the urgency of addressing economic inequality, climate change, and corporate accountability. She advocates for a more ethical business model that balances profit with social responsibility, highlighting the potential for companies to foster a humane and sustainable economic environment.
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INSIGHT

Capitalism's Imbalance

  • Capitalism, though a great invention, faces an imbalance.
  • Inequality, environmental failures, and weakened government capacity are key issues.
INSIGHT

Shareholder Value Focus

  • Focusing solely on shareholder value maximization can be detrimental.
  • It can lead to short-term decisions and manipulation of the system for profit.
ADVICE

CEO Advice

  • CEOs should consider long-term prosperity and freedom, not just immediate profits.
  • They need to be aware of the larger problems and act collectively for broader goals.
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