Grow the Pie

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.