HBR IdeaCast Why Capitalists Need to Save Democracy
Mar 10, 2020
Rebecca Henderson, a Harvard Business School professor and author of "Reimagining Capitalism in a World on Fire," discusses the current crises in capitalism and democracy. She emphasizes the vital collaboration needed between public and private sectors. Henderson urges businesses to engage with societal issues and support democracy amidst rising authoritarianism. She challenges the perception of government as tyrannical, advocating for its essential role in democracy, while also highlighting how empowered employees can drive meaningful corporate change.
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Capitalism and Democracy in Crisis
- The shareholder value revolution prioritized profit over societal well-being.
- This neglect of broader societal impact contributed to the decline of democracy and capitalism.
The Role of Government
- Businesses face increasing pressure to address societal issues like wages, education, and climate change.
- Strong governments are better equipped to handle these, allowing businesses to focus on their core function.
Strengthening Institutions
- Businesses should support institutions like regulators, labor, and media.
- This strengthens democracy, creating a stable environment for long-term business success.
