Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Chapter from: "Capitalism at Risk: Rethinking the Role of Business"
Published by: Harvard Business Publishing
Originally published in: 2011
Revision date: 21-Jul-2020

Abstract

Although the potential ‘disruptors’ of global capitalism - such as the stability of the financial system, inequality and populism, mass migration, and terrorism - might seem to be discrete and self-contained, they are not. Market capitalism must be viewed in relation to the larger sociopolitical system in which it is embedded. In this chapter, Harvard Business School professors Joseph Bower, Herman Leonard, and Lynn Paine build a framework showing how the potentially disruptive forces identified by the business leaders who participated in their four regional forums - in Europe, East Asia, Latin America, and the United States - are related to one another and to the market system as a whole. As one forum participant put it, ‘They're actually one integrated operating system in which you need huge collaboration.’ The authors argue that because the market system is supported and legitimized by an overarching sociopolitical ecosystem, its effective functioning and sustainability depend on the health of that larger ecosystem. Filled with compelling graphics that illustrate influences and threats from both inside and outside the capitalistic system itself, the chapter concludes that not enough attention is being paid to mitigating potential disruptors and maintaining the health of the larger ecosystem. And it leaves readers - and business leaders - with a looming question: Who is responsible for looking after the system as a whole? This chapter was originally published as Chapter 4 of ‘Capitalism at Risk: Rethinking the Role of Business.’ This chapter is excerpted from ‘Capitalism at Risk: Rethinking the Role of Business'.

About

Abstract

Although the potential ‘disruptors’ of global capitalism - such as the stability of the financial system, inequality and populism, mass migration, and terrorism - might seem to be discrete and self-contained, they are not. Market capitalism must be viewed in relation to the larger sociopolitical system in which it is embedded. In this chapter, Harvard Business School professors Joseph Bower, Herman Leonard, and Lynn Paine build a framework showing how the potentially disruptive forces identified by the business leaders who participated in their four regional forums - in Europe, East Asia, Latin America, and the United States - are related to one another and to the market system as a whole. As one forum participant put it, ‘They're actually one integrated operating system in which you need huge collaboration.’ The authors argue that because the market system is supported and legitimized by an overarching sociopolitical ecosystem, its effective functioning and sustainability depend on the health of that larger ecosystem. Filled with compelling graphics that illustrate influences and threats from both inside and outside the capitalistic system itself, the chapter concludes that not enough attention is being paid to mitigating potential disruptors and maintaining the health of the larger ecosystem. And it leaves readers - and business leaders - with a looming question: Who is responsible for looking after the system as a whole? This chapter was originally published as Chapter 4 of ‘Capitalism at Risk: Rethinking the Role of Business.’ This chapter is excerpted from ‘Capitalism at Risk: Rethinking the Role of Business'.

Related