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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: Next Generation Business Strategies for a Post-Crisis World, Third Edition, 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. Discover:

- The new business case for pursuing sustainable capitalism

- Sustainability strategies that go far beyond environmental sensitivity

- How to fully embed your enterprise in the local context--and why you should

- Tactics for making long-term sustainability work in a short-term world

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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