A consensus is growing that capitalism needs a course correction. Professor Rebecca Henderson voices an impassioned plea for a new approach to business, one that goes beyond immediate profits and shareholder returns. She makes a by-now familiar case: Managing for the short term might be good for stock prices this quarter, but it will prove catastrophic for humanity in the long run. Intriguingly, Henderson comes across not as a harsh critic of multinationals but as a fan of the strategies that companies such as Unilever, Nike and Aetna have undertaken to address environmental, social and governance issues.
About the Author
Rebecca Henderson is a professor at Harvard Business School and a research fellow at the National Bureau of Economic Research.