Chinese Edition of ‘Putting Purpose into Practice’ Published
August 2022
With China set to become the world’s largest economy by the end of this decade, there is an opportunity (and even a duty perhaps) for its economy to leapfrog the outdated neoliberal profit-maximization doctrine birthed in the west in the 1970s — a model that has created unprecedented levels of financial wealth, but also alarming environmental degradation and devastating inequalities in society — and to take the lead in implementing a new responsible approach to value creation.
For this to happen, the teaching and practice of management and investment must be reformed and a breakthrough innovation must emerge – one that repositions business and investment to profit by creating scalable solutions to the problems of society and the environment, not to profit from creating problems.
This vision has been at the core of the Economics of Mutuality, a new school of thought and management innovation based on in-depth academic research, management education, and intense business practice led by the Economics of Mutuality team, Mars and Oxford University’s Saïd Business School since 2007.
The 2021 Oxford University book Putting Purpose Into Practice: the Economics of Mutuality, co-edited by Oxford Professor Colin Mayer and former Mars Chief Economist Bruno Roche, is an important milestone in this endeavour. It includes breakthrough theoretical developments and practical case studies across geographies and business situations. It was translated into Chinese and published by China Translation and Publishing House 中国中译出版社 in mid-2022.
The results described in the book are stunning. For business to significantly outperform, it must integrate impact as a driver of value creation, not as a variable that measures collateral damages. In other words, successful business leaders and investors must no longer focus exclusively on short-term profit maximization within the boundaries of their firms (which is not even within their interests) but instead on creating mutual value for multiple stakeholders outside the firm and across financial and non-financial forms of capital – the so-called ESG space.
At the heart of this breakthrough emerges new modes of profit construction (i.e., the notion of True Profit Maximization vs. Financial Profit) and a new relationship between business, society, the environment, and work.
The co-editors hope that this book will trigger a great interest among Chinese-speaking leaders committed to the Common Prosperity agenda — and encourage them to join, contribute, and further develop the Economics of Mutuality movement with Chinese characteristics.
Other Articles
Lisbon Conscious Business Education Conference 2024: Evolving Education for Ethical Business Practices
Nordic Economics of Mutuality Forum October 15-16
The first Economics of Mutuality forum to be held in Scandinavia, this event taking place October 15-16, 2024 will be hosted by Brandinnova, the Center for Brand Research at the Norwegian School of Economics (NHH), Jæren Sparebank, and the Economics of Mutuality Foundation.
Oxford Virtual Executive Education Program, September 12 – October 31, 2024
Driving Impact Through Mutual Value Creation, an 8-week online course brought to you by Oxford University’s Saïd Business School and the Economics of Mutuality team, will equip you to walk the talk of Stakeholder Capitalism.
Asia Economics of Mutuality Forum 24-25 April 2024
Korean and global leaders in business, academia, government, and civil society will gather at Hanyang University in Seoul, South Korea, to launch the inaugural Economics of Mutuality Foundation and Hanyang University’s Global Forum on the role of business and investing in society. The event will take place from April 24 to 25, 2024. The two-day event will include addresses by Professor Colin Mayer, former Dean of Oxford University’s Said Business School; Chairman Moon Kook Hyun, President of the New Paradigm Institute and former CEO of Yuhan-Kimberly, and Dr. Jay Jakub, the Executive Director of the Economics of Mutuality Foundation, and co-author of the book, “Completing Capitalism.” The event will highlight the roles of academia, corporations, investors, family offices and entrepreneurs in creating an ecosystem of mutual value co-creation by how companies deploy their capital in society.