Grow the Pie

A Financial Times Book of the Year 2020! What is a responsible business? Common wisdom is that its one that sacrifices profit for social outcomes. But while its 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 its not an either-or choice - companies can create both profit and social value. The most successful companies dont 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 its more than just a mission statement, and discusses the critical role of working collaboratively with a companys 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.