Stuart L. Hart - Capitalism at the Crossroads: Next Generation Business Strategies for a Post-Crisis World

The Business Models to Drive Growth and Social Change (Collection)

Stuart L. Hart
C.K. Prahalad

Vice President, Publisher: Tim Moore

Associate Publisher and Director of Marketing: Amy Neidlinger

2013 by Pearson Education, Inc.

Publishing as FTPress Delivers

Upper Saddle River, New Jersey 07458

Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners.

All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

ISBN-10: 0-13-344869-X

ISBN-13: 978-0-13-344869-6

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BONUS MATERIAL

Videos relating to the case studies and bonus case studies are located on the book CD. You can also download them at the following Web site:

www.ftpress.com/Prahalad

Ebook readers can view extended case studies at the end of the ebook, following the index.

Next Generation Business Strategies for a Post-Crisis World

Third Edition

Vice President, Publisher: Tim Moore
Associate Publisher and Director of Marketing: Amy Neidlinger
Editor: Steve Kobrin
Executive Editor: Jim Boyd
Editorial Assistant: Pamela Boland
Development Editor: Russ Hall
Operations Manager: Gina Kanouse
Senior Marketing Manager: Julie Phifer
Publicity Manager: Laura Czaja
Assistant Marketing Manager: Megan Colvin
Cover Designer: Chuti Prasertsith
Managing Editor: Kristy Hart
Project Editor: Anne Goebel
Copy Editor: Language Logistics, LLC
Proofreader: Water Crest Publishing, Inc.
Indexer: Lisa Stumpf
Senior Compositor: Gloria Schurick
Manufacturing Buyer: Dan Uhrig

2010 by Pearson Education, Inc.
Publishing as Prentice Hall
Upper Saddle River, New Jersey 07458

This book is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services or advice by publishing this book. Each individual situation is unique. Thus, if legal or financial advice or other expert assistance is required in a specific situation, the services of a competent professional should be sought to ensure that the situation has been evaluated carefully and appropriately. The author and the publisher disclaim any liability, loss, or risk resulting directly or indirectly, from the use or application of any of the contents of this book.

Prentice Hall offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-382-3419, .

Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners.

All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America

First Printing June 2010
ISBN-10: 0-13-704232-9
ISBN-13: 978-0-13-704232-6

Pearson Education LTD.
Pearson Education Australia PTY, Limited.
Pearson Education Singapore, Pte. Ltd.
Pearson Education North Asia, Ltd.
Pearson Education Canada, Ltd.
Pearson Educacin de Mexico, S.A. de C.V.
Pearson EducationJapan
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Library of Congress Cataloging-in-Publication Data:
Hart, Stuart L.
Capitalism at the crossroads : next generation business strategies for a post-crisis world / Stuart L.
Hart. 3rd ed.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-13-704232-6 (pbk. : alk. paper) 1. Social responsibility of business. 2. Capitalism. I. Title.
HD60.H388 2010
658.408dc22
2010010594

To all the children, yet unborn.

The third edition of Capitalism at the Crossroads arrives at a pivotal momentit follows the worlds most serious financial crisis since the Great Depression. As we address the recessions dire consequences and rebound from the brink of economic collapse, Stuart Hart proposes a sustainable, socially responsible model of capitalism and compels us to seize the opportunities afforded by a fresh start.

Bill Clinton, Founder of the Clinton Global Initiative and Former President of the United States

Stuart Hart presents a systematic thinking towards sustainable business, full of creativity, wisdom and enlightenment.

Professor Jining Chen, Vice President, Tsinghua University, China

In this very timely book, Stuart Hart dissects the contemporary issues impacting capitalism and prescribes how we can walk the walk to cocreate a more effective and harmonious world tomorrow.

Kevin McGovern, Founder and CEO, The Water Initiative

Rising civil society awareness and tougher regulations imply that companies that pursue sustainable practices and deliver larger societal value will also gain from a new source of competitive advantage. Stuart Hart in this new edition brings fresh insights to further the cause for corporate sustainability.

Y C Deveshwar, Chairman, ITC Ltd, India

Stuart Hart has written an important, compelling book that provides both provocation and inspiration in equal measures. In Capitalism at the Crossroads, he explores the future of capitalism in an increasingly complex and interconnected world, arguing that all players are needed to be more aware and more innovativecorporations, governments, and NGOsif we are to build a truly sustainable, inclusive global economy. Our very survival depends on it. This book is for you, whether you are a forward thinking CEO or policymaker, a social entrepreneur or student of the world.

Jacqueline Novogratz, Founder and CEO of Acumen Fund, and author, The Blue Sweater

Stu Hart charts a course to a better future in which the corporate sector can create a sustainable form of commerce that benefits all the worlds peoples. Capitalism at the Crossroads was a path-breaking work when it came out in 2005; this third edition takes it up to the present. But the basic thesis of the book remains as compelling as ever. I highly recommend reading the book and following the path that Hart illuminates.

David Skorton, President of Cornell University

Capitalism at the Crossroads is a practical manifesto for business in the twenty-first century. Professor Stuart L. Hart provides a succinct framework for managers to harmonize concerns for the planet with wealth creation and unambiguously demonstrates the connection between the two. This book represents a turning point in the debate about the emerging role and responsibility of business in society.

C.K. Prahalad, Ross School of Business, University of Michigan, coauthor, Competing for the Future and author, The Fortune at the Bottom of the Pyramid