The intellectual foundation for the next generation of business leaders
Today's business schools were designed for a world that no longer exists. Capitalism raised the standard of living for billions of people over the past 150 years, but is now causing systemic challenges it is unable to address, including climate change and inequality. And yet, business schools continue to teach ideas that are making things worse: elevating the primacy of shareholder profits above the interests of employees, the environment, and society; viewing government as an intrusion on the free market rather than an arbiter of its proper functioning; and promoting unlimited economic growth despite the devastating environmental and social consequences. Business schools cannot simply drop an elective into their curriculum to address these challenges. We must rethink the faulty foundations.
Business School and the Noble Purpose of the Market explains the intellectual foundation MBA students, faculty, and administrators need to reform capitalism and restore its noble purpose for the 21st century. Many business students are in fact seeking this kind of education and frustrated that they are not getting it from their professors. This book will fill in gaps in their education, equipping them with the models and mindset to rethink shareholder capitalism and serve society's needs. Business faculty and administrators will find a practical program for amending curriculum and pedagogy, changing student and faculty rewards, and bringing a new spirit and sensibility to the business school.
Business leaders have tremendous power to influence our society, how it operates, whether it is fair, and the extent to which it impacts the environment. And yet, we do not recognize or call out the responsibility that comes with that power. This book is meant to challenge future business leaders to think differently about their career, its purpose, and its value as a calling or vocation, one that is in service to society. Its message is for current and prospective business students, business leaders thinking anew about the role of business in society, and the business educators that train all these people.
We face great challenges as a society today, from environmental problems like climate change and habitat destruction, to social problems like income inequality, unemployment, lack of a living wage, and poor access to affordable health care and education. Solutions to these challenges must come from the market (as comprised of corporations, the government, and nongovernmental organizations, as well as the many stakeholders in market transaction, such as the consumers, suppliers, buyers, insurance companies, and banks), the most powerful institution on earth, and from business, which is the most powerful entity within it. Though government is an important and vital arbiter of the market, business is the force that transcends national boundaries, possessing resources that exceed those of many nations. Business is responsible for producing the buildings that we live and work in, the food we eat, the clothes we wear, the forms of mobility we employ, and the energy that propels us. This does not mean that only business can generate solutions or that there is no role for government, but with its unmatched powers of ideation, production, and distribution, business is positioned to bring the change we need at the scale we need it. Without business, the solutions will remain elusive. Indeed, if there are no solutions coming from the market, there will be no solutions. And without visionary and service-oriented leaders, business will never even try to find them.
Society and democracy are ever threatened by the fall of fact. Rigorous analysis of facts, the hard boundary between truth and opinion, and fidelity to reputable sources of factual information are all in alarming decline. A 2018 report published by the RAND Corporation labeled this problem truth decay and Andrew J. Hoffman lays the challenge of fixing it at the door of the academy. But, as he points out, academia is prevented from carrying this out due to its own existential crisis-a crisis of relevance. Scholarship rarely moves very far beyond the walls of the academy and is certainly not accessing the primarily civic spaces it needs to reach in order to mitigate truth corruption. In this brief but compelling book, Hoffman draws upon existing literature and personal experience to bring attention to the problem of academic insularity-where it comes from and where, if left to grow unchecked, it will go-and argues for the emergence of a more publicly and politically engaged scholar. This book is a call to make that path toward public engagement more acceptable and legitimate for those who do it; to enlarge the tent to be inclusive of multiple ways that one enacts the role of academic scholar in today's world.
This book brings together emerging perspectives from organization theory and management, environmental sociology, international regime studies, and the social studies of science and technology to provide a starting point for discipline-based studies of environmental policy and corporate environmental behavior. Reflecting the book's theoretical and empirical focus, the audience is two-fold: organizational scholars working within the institutional tradition, and environmental scholars interested in management and policy. Together this mix forms a creative synthesis for both sets of readers, analyzing how environmental policy and organizational practices are shaped, spread and contested.
This astonishing book invites you into a conversation between a teacher, John R. Ehrenfeld, and his former student now professor, Andrew J. Hoffman, as they discuss how to create a sustainable world. Unlike virtually all other books about sustainability, this one goes beyond the typical stories that we tell ourselves about repairing the environmental damages of human progress.
Through their dialogue and essays that open each section, the authors uncover two core facets of our culture that drive the unsustainable, unsatisfying, and unfair social and economic machines that dominate our lives. First, our collective model of the way the world works cannot cope with the inherent complexity of today's highly connected, high-speed reality. Second, our understanding of human behavior is rooted in this outdated model. Driven by the old guard, sustainability has become little more than a fashionable idea. As a result, both business and government are following the wrong path - at best applying temporary, less unsustainable solutions that will fail to leave future generations in better shape. To shift the pendulum, this book tells a new story, driven by being and caring, as opposed to having and needing, rooted in the beauty of complexity and arguing for the transformative cultural shift that we can make based on our collective wisdom and lived experiences. Then, the authors sketch out the road to a flourishing future, a change in our consumption and a new approach to understanding and acting.
There is no middle ground; without serious change at the most basic level, we will continue to head down a false path. Indeed, this book is a clarion call to action. Candid and insightful, it leaves readers with cautious hope.
Climate change's impacts cut across all functional areas of a business. The systematic approach proposed in this report will be very helpful to business managers concerned with integration of business activities in operations, marketing, finance, and human resources to support a consistent, pro-active strategic response to climate change.
--Karen Flanders, Director, Corporate Responsibility, The Coca-Cola Company
Carbon Strategies captures the risks, and opportunities, for companies in an increasingly carbon-constrained marketplace. This book will be invaluable to any executive seeking insight into strategies for success in this changing business climate.
--William L. Thomas, Americas Environment Head, Clifford Chance US LLP
For any manager who has been charged by the CEO to develop a climate change strategy, this book is for you. It offers plainspoken wisdom garnered from over 30 companies on how best to address climate change as a business issue. It takes much of the guesswork and expense out of testing unproven ideas, and puts you on the right path towards addressing this critical issue in a way that benefits the bottom line and the environment.
--Fred Krupp, President, Environmental Defense
In order to preserve the stability and growth of the world's economy and all of the opportunities it affords, we must protect the global environment. Climate change represents one of the most significant issues of risk and reward facing CEOs and investors today. Hoffman offers a very helpful framework for the analysis.
--Michael Klein, Chairman and Co-Chief Executive Officer, Citi Markets & Banking Vice Chairman, Citibank International PLC
Future generations will look back with either admiration or despair, judging how well we, in these early years of the twenty-first century, addressed critical climate-change issues. Over the past six years, even as Entergy's sales increased more than 20 percent, our emissions have been held to near 1990 levels. We applaud Andy Hoffman and the Pew Center's success in creating a fact-based constructive dialogue among various stakeholders, while offering effective solutions to meet the needs of future generations. With the best intentions of everyone, we can give our grandchildren a planet that we changed for the better.
--J. Wayne Leonard, Chairman and Chief Executive Officer, Entergy Corporation
While climate change presents a daunting array of potential challenges, there are also real opportunities if you know where to look for them. Carbon Strategies provides approachable, pragmatic, and actionable guidance for companies who are ready and willing to turn climate-related risks from a liability into a competitive advantage.
--Brian M. Storms, Chairman and CEO, Marsh Inc.
We hear far too often that the constraints of 'business as usual' prevent real action on global warming. In this important and timely book Andrew Hoffman demonstrates that real action is already under way in many of the world's leading corporations. Moving far beyond simple anecdotes to detailed analysis and careful case history, Hoffman lays out a practical road map to enduring corporate change.
--Rebecca M. Henderson, Eastman Kodak LFM Professor, MIT Sloan School
Carbon Strategies describes specific steps any business can take to implement sound, practical, climate-related corporate policies. Based on Andrew J. Hoffman's widely praised report from the Pew Center on Global Climate Change, and significantly revised in light of subsequent developments, Carbon Strategies teaches practitioners and students about the importance of timing policy implementation, establishing appropriate levels of internal and external commitment, influencing beneficial policy development, and creating new business opportunities based on climate policy. Hoffman presents real-life lessons learned at each step of the climate-strategy development process and concludes this concise guidebook with six case studies (Cinergy, Swiss Re, DuPont, Alcoa, Shell Group, and Whirlpool) that demonstrate the principles of corporate climate policymaking in action.