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Changing the purpose of the corporation to rebalance capitalism
[‘Towards Collaborative Community’]

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  • Rebecca M Henderson

Abstract

Solving the great problems of our time will require reimagining capitalism by balancing the power of the free market with capable, democratically accountable government and strong civil society. Changing the purpose of the firm has the potential to make this process of rebalancing significantly easier. Purpose-driven firms could be catalysts in the drive for systemic change by supporting transformation within their own industries, supporting cooperation in the public interest and modelling public/private partnerships, and supporting the strengthening of global democracy. Transforming the purpose of the firm will require not only changing corporate law, but also changing the metrics used to control and measure firms and the social norms that constrain and guide corporate behavior.

Suggested Citation

  • Rebecca M Henderson, 2021. "Changing the purpose of the corporation to rebalance capitalism [‘Towards Collaborative Community’]," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(4), pages 838-850.
    • Handle: RePEc:oup:oxford:v:37:y:2021:i:4:p:838-850.
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    File URL: http://hdl.handle.net/10.1093/oxrep/grab034
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    References listed on IDEAS

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    Cited by:

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    2. Chen, Lifeng & Khurram, Muhammad Usman & Gao, Yuying & Abedin, Mohammad Zoynul & Lucey, Brian, 2023. "ESG disclosure and technological innovation capabilities of the Chinese listed companies," Research in International Business and Finance, Elsevier, vol. 65(C).
    3. Michael Lainé, 2023. "How to reconcile actual climate change mitigation with prosperity? A proposal," Post-Print hal-04265121, HAL.
    4. Francesca Collevecchio & Gianluca Gionfriddo, 2023. "Adopting a social purpose in for-profit firms: the role of the board of directors," International Entrepreneurship and Management Journal, Springer, vol. 19(3), pages 1467-1499, September.

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