About the Author . . . xi Acknowledgments . . . xii Preface: Al Gore, Former Vice President of the United States . . . xxiii Foreword: Fisk Johnson, Chairman and CEO, S. C. Johnson & Son, Inc. . . . xxvi PART ONE: MAPPING THE TERRAIN 1 Prologue: Reinventing Capitalism for the Post-Crisis World . . . 3 The Great Disruption . . . 4 The Best of Times, The Worst of Times . . . 5 Environmental Meltdown? . . . 8 The Demise of Development . . . 10 Implications for Corporations . . . 13 The Fork in the Road . . . 15 Chapter 1: From Obligation to Opportunity . . . 19 The Great Trade-Off Illusion . . . 21 The Greening Revolution . . . 23 Shattering the Trade-Off Myth. . . . 25 Breaking Free of Command-and-Control . . . 26 Beyond Greening . . . 30 Raging Against the Machine . . . 33 Smart Mobs Versus Smart Globalization . . . 35 Becoming Indigenous . . . 38 The Road Ahead . . . 41 Overview of the Book . . . 43 Chapter 2: Worlds in Collision . . . 51 The Three Economies . . . 53 Collision Course . . . 60 New Lenses on the Global Market . . . 62 Developed Markets: Reducing Corporate Footprint . . . 65 Emerging Markets: Avoiding the Collision . . . 68 Traditional Markets: Serving Real Needs . . . 72 The Value Proposition . . . 76 Chapter 3: The Sustainable Value Portfolio . . . 79 Sustainability Buzzwords . . . 80 Elements of Shareholder Value . . . 81 The Buzzword Sort . . . 84 Connecting the Dots: The Sustainable Value Portfolio . . . 87 Charting the Sustainable Value Portfolio . . . 97 The Road to Sustainability . . . 99 Pursuing the White Space. . . . 104 PART TWO: BEYOND GREENING 109 Chapter 4: Clean Technology and Creative Destruction . . . 111 Continuous Improvement Versus Creative Destruction . . . 112 From Textile Dyes to Biomaterials . . . 118 Using Carbon Dioxide to Change the World . . . 120 Developing an Ecomagination . . . 122 Whole-Systems Thinking . . . 124 Reinventing the Wheels . . . 128 Technologies of Liberation . . . 131 Eating Your Own Lunch . . . 133 Chapter 5: Innovation from the Bottom-Up . . . 137 On the Horns of a Dilemma . . . 138 Birth of BoP. . . 139 The Tip of the Iceberg . . . 141 Creative Creation . . . 146 Driving Innovation from the Base of the Pyramid . . . 149 Connecting the World. . . 151 Food, Health, and Hope? . . . 155 Power to the People . . . 158 The Great Convergence . . . 162 A New Development Paradigm . . . 165 Taking the Great Leap . . . 167 Chapter 6: Raising the Base of the Pyramid . . . 171 BoP Pioneers . . . 172 It’s the Business Model, Stupid . . . 173 Assessing Sustainability Impact . . . 189 Village Phones: The Triple Bottom Line . . . 192 The MNC Advantage . . . 196 A Common Cause . . . 197 PART THREE: BECOMING INDIGENOUS 201 Chapter 7: Broadening the Corporate Bandwidth . . . 203 Learning from Ladakh . . . 204 The Post-Development Challenge . . . 207 Radical Transactiveness. . . 211 Fanning Out: Extending the Scope of the Firm . . . 213 Fanning In: Integrating Diverse and Disconfirming Information . . . 217 Expanding Our Concept of the Global Economy . . . 222 From Alien to Native . . . 224 Chapter 8: Developing Native Capability . . . 227 Next Generation Strategies and Skills . . . 229 Engage First, Design Second . . . 230 Coinvent Custom Solutions . . . 234 Fail Small, Learn Big . . . 237 Fly Under the Radar . . . 239 Work with Nontraditional Partners . . . 242 Build Social, Not Legal, Contracts . . . 244 Moving Beyond the Multinational Model . . . 248 Chapter 9: Re-Embedding Innovation Strategy . . . 253 Comparing Apples and Oranges . . . 254 Toward a Base of the Pyramid Protocol . . . 257 Learning by Doing . . . 262 Taking the Initiative on Water . . . 267 The Three Big Challenges . . . 273 Leading the Next Great Transformation . . . 276 Chapter 10: Building the Sustainable Global Enterprise . . . 281 Making It Happen in the Real World . . . 283 Aligning the Organization . . . 293 Building the Cathedral . . . 300 Postscript . . . 302 Epilogue: Looking Forward . . . 307 Draining the Swamp . . . 308 The Next Tsunami . . . 310 Who Will Be the Twenty-First Century Watchdog? . . . 312 Index . . . 315

“The central message of Stuart Hart's book is that global business needs to be caring and be committed to preserving the globe's ecological integrity. The ongoing economic slowdown brought about by rampant capitalism, the lessons from which this new edition of the book factors in, has only served to emphasize the urgency for business to adopt the radical transformation of strategy that Stuart has been advocating.” –RATAN TATA, Chairman, Tata Group   “A few books change the way you think. Very few change the way you act. Stuart Hart's writings have served as a practical guide, a system of road signs that put new order into the complex business of becoming sustainable. We're learning that we can advance in a meaningful, exciting, and beneficial way. We fully expect that his ideas are guideposts that will mark Dow Corning's road to sustainability leadership.” –STEPHANIE BURNS, Ph.D., Chairman, CEO, and President, Dow Corning Corporation   “Capitalism at the Crossroads rightly points to capitalism as the most powerful and creative force we have for solving global problems. It is a welcome antidote to widespread ignorance about capitalism as a force for good.” –JOHN MACKEY, CEO, Whole Foods Market, and coauthor, Be the Solution   “I hope this book will be able to influence the thought processes of corporations and motivate them to adapt to forthcoming business realities for the sake of their own long-term existence. Besides business leaders, this is a thought-provoking book for the readers who are looking for solutions to capitalism's problems.” –MUHAMMAD YUNUS, Founder and Managing Director, Grameen Bank, Bangladesh, and 2006 Nobel Peace Prize recipient   “…a pioneering roadmap to responsible corporate growth.” –CLAYTON CHRISTENSEN, Professor, Harvard Business School, and New York Times best-selling author, The Innovator's Dilemma   Reinventing Capitalism and Companies for a Radically New World   Today's era of economic crisis has sent a powerful message: The age of “mercenary” capitalism is ending. We must finally embark on a new age of sustainable, stakeholder-based capitalism. While enlightened executives and policymakers understand the critical need for change, few have tangible plans for making it happen. In Capitalism at the Crossroads, Stuart L. Hart presents new strategies for identifying sustainable products, technologies, and business models that will drive urgently needed growth and help solve social and environmental problems at the same time.   Drawing on his experience consulting with top companies and NGOs worldwide, Hart shows how to craft your optimal sustainability strategy and overcome the limitations of traditional “greening” approaches. In this edition, he presents new and updated case studies from the United States and around the world, demonstrating what's working and what isn't. He also guides business leaders in building an organizational “infrastructure for sustainability”--one that can survive budgeting and boardrooms, recharging innovation and growth throughout your enterprise.   Mapping the terrain: where we stand and where to go from here The new business case for pursuing sustainable capitalism   Beyond “greening” Implementing sustainability strategies that go far beyond environmental sensitivity   Becoming indigenous: how to build a truly sustainable global enterprise How to fully embed your enterprise in the local context--and why you should   Robust organizational blueprints for sustaining sustainability Making long-term sustainability work in a short-term world

Shows how environmental and recent economic crises have stemmed from failed corporate strategies and provides specific global solutions.   Powerful new ways to improve business growth while also improving the quality of life. Discusses the oil price spike, the world food shortage, and the sub-prime crisis as failed business strategies and provides detailed solutions. New discussions of The Water Initiative (a start up company in Mexico focused on the underserved); and Enterprising Health (a similar US based project).

This edition contains: Thoroughly updated case studies and examples Extensive coverage of incubating clean, green technologies at the "base of the pyramid" and "trickling them up" to the top A new Preface demonstrating how recent economic crises stem from unsustainable policies and strategies and what can be done about it New analyses of oil price spikes and the sub-prime crisis through the lens of sustainable capitalism Updates on breakthrough "bottom of the pyramid" initiatives in the U.S. and beyond