Next month will be the anniversary of the U.S. Business Roundtable’s 2019 call for a shift from “shareholder capitalism” toward “stakeholder capitalism.” Business leaders asked us to imagine a transformed world, but a bat virus in Wuhan had its own ambitious plans — and has, for the time being, transformed the world in quite another way. It has thrust government to the center, pushing business, whatever its approach to capitalism, to the sidelines.
Impact Investing Won’t Save Capitalism
The rules of the game need to change.
July 17, 2020
Summary.
Many businesses and investors have embraced “impact investing,” which seeks commercial returns while producing a positive impact on society. Some believe it could be the “revolution” that will save capitalism and solve many of the world’s greatest problems. This is an enticing vision, but the authors believe that if we want to genuinely “save capitalism,” put an end to unsustainable and destructive economic activity, and gear the economy towards producing positive impact for people and the planet, then impact investing as it’s traditionally conceived will not be enough. What’s needed is reform of the rules that govern how our economy works — and impact investors have a critical role to play.