Grow the Pie : How Great Companies Deliver Both Purpose and Profit

Should companies be run for profit or purpose? This book shows how they can deliver both - based on rigorous evidence, not wishful thinking, and an actionable framework to put purpose into practice. It explains how managers, investors, and policymakers can reform business to serve society, and how citizens can play their part.

A Financial Times Book of the Year 2020! What is a responsible business? Common wisdom is that it''s one that sacrifices profit for social outcomes. But while it''s crucial for companies to serve society, they also have a duty to generate profit for investors - savers, retirees, and pension funds. Based on the highest-quality evidence and real-life examples spanning industries and countries, Alex Edmans shows that it''s not an either-or choice - companies can create both profit and social value. The most successful companies don''t target profit directly, but are driven by purpose - the desire to serve a societal need and contribute to human betterment. The book explains how to embed purpose into practice so that it''s more than just a mission statement, and discusses the critical role of working collaboratively with a company''s investors, employees, and customers. Rigorous research also uncovers surprising results on how executive pay, shareholder activism, and share buybacks can be used for the common good.