• Describe the basic tenets of the four types of efforts to reimagine capitalism.
• Challenge the boundaries of the current system and discuss the opportunities and limitations for change agents to impact the capitalist system.
• Apply traditional strategic management frameworks to the challenges of today’s economy and discuss their limitations and potential expansions.
• Identify the potentials and shortcomings of the various efforts to reimagine capitalism.
• Explain and justify their position concerning the various experiments and imaginaries to reshape capitalism.
• Discuss the legitimacy of corporate actors in different contexts and how it has changed over time.

Growing inequality, catastrophic environmental damage, and a general mistrust in capitalism as a system currently hampers the legitimacy of companies and puts pressure on political systems worldwide. This course looks at various attempts to “reimagine capitalism.” It explores opportunities for addressing big societal problems and asks in particular how the private and the civil society sectors can contribute to developing more just and equal societies.

In the aftermath of one of the worst financial, economic and social crisis in post-war history, the discussion on the capitalist system and its form has intensified. As a response to big societal problems, many individuals, communities and organizations around the globe are experimenting with new business models. This course aims at exploring past and present efforts to re-imagine capitalism and introduces students to four distinct positions that are shaping businesses worldwide:

1. Conscious capitalism – A growing number of business leaders, e.g. from Starbucks, Patagonia and Whole Foods, are building business models beyond the profit motive and shareholder value ideas. Conscious capitalism is about acknowledging the wider role of businesses in society. But, aren’t the terms “capitalism” and “conscious” contradictory or can the oxymoron be overcome?
    
2. Social entrepreneurial initiatives – Although the “social” and the “entrepreneurial” are often seen as two opposing rationalities, social entrepreneurs insist on the synergies between these two ways of thinking and acting. From micro-lending programs to bio-toilets, social entrepreneurial initiatives are promoting social innovations that are changing industries and societies for good. Using real-life examples of social entrepreneurship, the course will look at the effects of such hybrid rationalities on the socioeconomic systems they aim to advance.
    
3. Sharing economy – In the last few years, a number of initiatives emerged around the “sharing economy.” Airbnb, Uber, or couch-surfing are suggesting new types of business models. But, to what extent are the values informing the sharing economy proposing a truly novel economic system, and which are the obstacles to their economic and social success?
    
4. Community economies –Economic practices that nourish the values of mutual aid, reciprocity, co-operation, and collaboration change communities from Mondragón in Northern Spain to New Orleans in Louisiana. Cooperative ownership models and alternative local currencies seem to empower communities to build their own economic and business environments. But are such initiatives scalable and can they be transferred between regions?

This course is designed for students who want to explore the idea that some of the "big" societal problems can be effectively addressed by high performing private firms or social activists. Students will be exposed to the business realities that come with “reimagining capitalism” and will discuss obstacles and context factors for their implementation. Based on case study discussions of real-life businesses, students will learn how to develop realistic business models and implement them into practice by taking both the industry and socio-political context into account. We will discuss strategic management tools and consider if and how they should be adapted to these socially conscious capitalist businesses.

The course is part of the series Advanced Studies Electives. It addresses students in their last year of their master who are looking for inspiration for their master theses. The course will introduce the newest research in the field of Conscious Capitalism, Social Entrepreneurship, Sharing Economy and Community Economies, including state-of-the-art research debates and questions for potential master theses. 

The course is part of the Minor in Sustainable Entrepreneurship. Although the course can be taken as a separate elective, students will benefit from taking it together with the Minor’s two other electives: “Re-imagining Environmental Entrepreneurship” and “Revising the Commons, Re-imagining Collectives”. 

Course Faculty: Ester Barinaga & Christina Lubinski

Students will need to buy a pre-set collection of cases from Harvard Business Publishing. All other texts will be accessible through CBSLearn.

Baumol, W. J. (1990). Entrepreneurship: Productive, Unproductive, and Destructive. Journal of Political Economy, 98(5), 893-921. 

de Burin, A., & Mataira, P. 2003. “Indigenous Entrepreneurship.” In A. de Bruin & A. Dupuis (Eds.), Entrepreneurship: New perspectives in a global age, pp. 169–184. Aldershot: Ashgate.

Emerson, J. 2003. “ The Blended Value Proposition: Integrating Social and Financial Returns.” California Management Review, 45(4): 35-51.

Fligstein & McAdam. 2011. Towards a general theory of strategic action fields. Sociological Theory, 29(1).

Gardner, R., Ostrom, E. & Walker, J.M. 1990. “The nature of common-pool resource problems.”
Rationality and Society, 2(3):335-358.

Gibson-Graham. 2006. “Building Community Economies.” In Post-Capitalist Politics. Ch. 7, pp. 165-195.

Hall, Peter A., and David Soskice. “An Introduction to Varieties of Capitalism.” In Varieties of Capitalism. The Institutional Foundations of Comparative Advantage, ed. Peter A. Hall and David Soskice, 1-68. Oxford, 2001.

Hargadon, A. B. and Y. Douglas (2001). “When Innovations Meet Institutions: Edison and the Design of the Electric Light.” Administrative Science Quarterly 46(3): 476-501.

Jones, Geoffrey. Multinationals and Global Capitalism: From the Nineteenth to the Twenty-First Century. Oxford University Press: Oxford 2004: 7-41.

Khanna, T., K. G. Palepu and J. Sinha. 2005. “Strategies That Fit Emerging Markets.” Harvard Business Review 83(6): 63-76.

Kent & Dacin. 2013. “ Bankers at the gate: Microfinance and the high-cost of borrowed logics.” Journal of Business Venturing, 28(6):759-773.

Mackey, J. 2011. “ What conscious capitalism really is. A response to Jaes O’toole and David Vogel’s “Two and a half cheers for conscious capitalism.” California Management Review, 53(3):83-90.

Peredo, A. M., & Anderson, R. W. 2006. “Indigenous Entrepreneurship Research: Themes and Variations.” In C. S. Galbraith & C. H. Stiles (Eds.), Developmental Entrepreneurship: Adversity, Risk, and Isolation, pp. 253–273. Oxford: Elsevier.

Peredo, A. M., & McLean, M. 2013. “Indigenous Development and the Cultural Captivity of Entrepreneurship.” Business and Society, 52, 592–620.

Scott, M. & Dodd, N. 2015. “Rebirth of an old technology” People Powered Money, ch. 1, pp. 29-41.

Schor, J. 2014. “ Debating the sharing economy.” Great Transition Initiative.

Wang, C. 2013. “ Conscious capitalism firms: Do they behave as their proponents say?” California Management Review, 55(3): 60-86.