Thursday, May 21, 2020

Modern Finance Theory is not wrong, it's just incomplete...

Five key ideas that need to be added to the traditional story of business:

(1) The importance of purpose, values, and ethics, as well as  profits;
(2)  the centrality of creating value for stakeholders, as well as shareholders;
(3) seeing business as embedded both in societal institutions and in markets;
(4) recognizing the full humanity of people, as well as their economic interests;
(5) integrating "business" and "ethics" into more holistic business models.

When these ideas are combined, what emerges is a new story about the very nature of business, as well as a conception that is more aptly named "responsible business."

Taken from: The Power of AND, Responsible Business Without Trade-Offs

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