Can the basic tenets of Capitalism be used to save the world? Next generation business strategies for a post-crisis world.

1. Capitalism at the Crossroads
Next Generation Business Strategies for a Post-Crisis World
Stuart L. Hart. Capitalism at the Crossroads (Upper Saddle River, NJ:
© Pearson Education, Inc. Publishing as Wharton School Publishing, 2010).
Third Edition

2. The Long and Winding Road
Forties - Sixties 2000 - Present
Denial Clean
Technology
(Oblivious) (Eco-effectiveness)
Seventies - Eighties Mid-Eighties – 2000
End-of-Pipe Greening
Regulation
(Trade-Off) (Eco-efficiency)
Stuart L. Hart. Capitalism at the Crossroads
(Upper Saddle River, NJ: © Pearson Education, Inc.
Publishing as Wharton School Publishing, 2010).
6/21/2012 jgillis767@aol.com 2

3. Indigenous Enterprise
The Next Sustainability Challenge
Beyond Greening Becoming Indigenous
Base of the Radical
Pyramid Transactiveness
Target the unmet Engage fringe
needs stakeholders
Clean Technology Native Capability
Deploy the Co-invent in-
disruptive context solutions
sustainable that leverage
technologies local knowledge
“Alien” “Native”
Stuart L. Hart. Capitalism at the Crossroads
(Upper Saddle River, NJ: © Pearson Education, Inc.
Publishing as Wharton School Publishing, 2010).
6/21/2012 jgillis767@aol.com 3

4. Worlds in Collision: The Business Opportunity
Source: Adapted from Hart, S. 1997. “Beyond Greening: Strategies for a sustainable world.” Harvard Business Review, Jan-Feb: 66-76
Lower material and energy consumption Develop green products and technology
Developed Economies
Money Economy Build the skills of
Reduce pollution Emerging Economies the poor and the
burdens dispossessed
Pollution Poverty
Megacities
Nature’s Economy Depletion Traditional Economy
Ensure sustainable use of nature’s economy Foster village-based entrepreneurship
Replenish depleted resources Stuart L. Hart.
Capitalism at the Crossroads
6/21/2012 jgillis767@aol.com 4

5. Shareholder Value Model
Building Tomorrow’s Opportunity
New Skills Growth Path
Repositioning Trajectory
Nurturing Engaging
Internal External
Capabilities Constituencies
Cost and Reputation
Risk Reduction Legitimacy
Managing Today’s Business
Stuart L. Hart.
Capitalism at the Crossroads
6/21/2012 jgillis767@aol.com 5

6. Shareholder Value Model
Tomorrow
• Eco-Effectiveness • Sustainable Development
• Bio-mimicry • Base of the Pyramid
• Leapfrog Technology • Social Entrepreneurship
• Sustainable Technology • Urban Reinvestment
• Systems Thinking • Radical Transactiveness
Internal External
• Greening • Corporate Responsibility
v
• Eco-Efficiency • Industrial Ecology
• Pollution Prevention • Lifecycle Management
• Sustainable Technology • Green Design
• Risk Management • Transparency
Today Stuart L. Hart. Capitalism at the Crossroads
(Upper Saddle River, NJ: © Pearson Education, Inc.
Publishing as Wharton School Publishing, 2010).
6/21/2012 jgillis767@aol.com 6

7. Sustainable Value Framework
Source: Adapted from Hart, S. and Milstein, M. 2003. “Creating sustainable value.” Academy of Management Executive, 17(2) 56-69.
Tomorrow
Drivers Strategy: Strategy: Drivers
•Disruption Clean Technology Base of the Pyramid •Population
•Clean Tech •Poverty
•Footprint • Inequality
Innovation & Growth &
Repositioning Trajectory
Internal Sustainable
External
Value
Strategy: Strategy:
Drivers Pollution Prevention Product Stewardship Drivers
•Pollution •Civil Society
•Consumption •Transparency
•Waste Cost & Reputation & • Connectivity
Risk Reduction Legitimacy
Today Stuart L. Hart. Capitalism at the Crossroads
(Upper Saddle River, NJ: © Pearson Education, Inc.
Publishing as Wharton School Publishing, 2010).
6/21/2012 jgillis767@aol.com 7

8. Path to Inclusive Commerce
Insufficient Alien
Beyond Becoming
Greening
•Pollution Greening Indigenous
prevention •Clean •Native Sustainable
•Product technology capability Value
stewardship •Base of the •Embedded
pyramid innovation
• Continuous • Disruptive • Business
improvement technology co-creation
• Incremental • Leapfrog • Mutual value
change innovation creation
• Rationalize • Restructure • Incubate new
industry industry industry
Stuart L. Hart.
Capitalism at the Crossroads
6/21/2012 jgillis767@aol.com 8

9. Veritas
6/21/2012 jgillis767@aol.com 9