Touro College of Capitalism At The Crossroads Book Review Presentation

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Legal Analysis and Sustainability
Introduction
Many individuals have engaged in operating businesses in various economies towards
ensuring that they attain a higher market share in the industries that they are working. In the
book Capitalism at the Crossroads by Stuart L. Hart, the author explains how various
businesses can be able to meet their profitability and ensuring market sustainability and at the
same time operating along the ecosystem and societies. The author depicts the various
challenges that different economies encounter towards ensuring global sustainability
including terrorism which threatens business operations, the climatic changes, and the
environment are all not able to sustain the current economic model, and the various antiglobalization movements are threatening business stability. Capitalism is indeed at crossroad
through the various named challenges that many economies encounter making it difficult for
businesses to thrive. Many businesses are also at crossroad since it has become difficult and
challenging for businesses to invent new strategies that will lead to business growth and
productivity. The review and analysis of the book Capitalism at the Crossroad would be
highlighted in the discussion.
Book Review of Capitalism at the Crossroads
Stuart Hart in the book purports that many businesses are not able to flourish in the
global market since there are no social institutions that have engaged to fill the leadership
breach gap to control the many challenges of capitalism. There are many challenges that
global capitalism encounter which has led to it standing at a crossroad, which includes the
various terrorist activities, destruction of the environment, and anti-globalization backlash.
Many global businesses are also intertwined in this havoc as they are desperately searching
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for new sources of profitable growth. The author in the book provided various avenues of
solving these problems that global capitalism and global companies encounter towards
ensuring sustainability. In the book, Hart highlights that when he was born the world
population was about 2 billion but since then the population has increased to about 6.2 billion
individuals and believes that the population will continue to rise.
Capitalism has been able to address many BOP needs together with employing a
higher percentage of world resources. Hart asserts that this might not be the case soon since
the challenges mentioned earlier that capitalism and business encounter would increase
exponentially due to the present global scenario, which prompts the need for implementing
changes. Hart in the book provided the various challenges that contemporary capitalism
encounter and framed the issue as an ongoing evolution that which relates to social
responsibility. He explains that in today’s corporate world many have recognized the
importance of greening business undertakings and have engaged in developing internal
capacities that will help to do many things (Hart 180). Many businesses today still view that
environmental and social responsibilities are disruptive acts to various companies’ business
lines. The various challenges of global capitalism and global companies that make them be
on a crossroad can be resolved through the creation of sustainable products that would play a
leading role in solving the urgent societal problems. This entails the use of new technology
that will help to deliver profitable solutions that will lead to a reduction of poverty and
protection of the environment. The author asserts that this can be achieved by becoming truly
to the indigenous markets and engaging in avoiding all the pitfalls of greening and
sustainability strategies.
Through the innovation of corporate strategies by various companies whose models
comprises of profit-making, sustainable and inclusive play a significant role in disseminating
the capitalism crossroad. In the book, Hart invents a framework in which a model of global
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commerce might be advanced which will be focused on understanding the various need of the
population at the base of the economic pyramid (BOP) in a way which is culturally
appropriate, environmentally sustainable and economic profitable (Hart 15). Many businesses
are making a mistake by focusing their activities on customer purchasing power as a
prerequisite for economic opportunities. Many of the companies that have tried to reach the
BOP market through various strategies have been at the forefront towards disseminating the
capitalism crossroad.
In concluding his book, Hart provided various challenges for contemporary
companies which “try to make sustainability to occur in the real world of budgets, quarterly
earnings reports, discounted cash-flow analysis and the discipline of the investor community”
(Hart 220). He calls for various companies to avoid the top-down bias and deriving
organizational learning strategies, which understand the BOP marketplace. He also pointed
out the need of organizations to reinvent cost structures which incorporate the
underutilization and often difficult to measure the social and human capital resources which
exist in BOP economies. Harts mostly focus on the need of sustainability, which is a
commendable anti-dote to the quarterly profit mentality which plagues much on decision
making in contemporary capitalism. He ends up asserting that sustainability “requires a
healthy dose of humility and respect, as well as a greater appreciation for the many and
varied ways that people choose to live” (Hart 220).
Analysis of Capitalism at the Crossroad
Many of the multinationals companies have engaged in incubating new businesses in
the income-poor communities and engaging in the establishment of new ways to respond to
the issues of global warming and terrorism. Capitalism plays a leading role in the growth of
an economy and ensuring the growth of globalization, which calls for the need for
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eliminating all the crossroads that hinder global capitalism. Many people often lag
economically as a result of the various economic, social and political factors, which need to
be dealt with. I tend to believe that when the individuals at the BOP are offered policies that
will help to improve their living conditions, it would in return be an advantage to the various
businesses, as they will derive some benefits from the undertaking. Creation of indigenous
organizations and creating technological products and services that will meet the needs of the
locals and ensuring that an organization builds local businesses from the bottom up will help
to ascertain capitalism sustainability.
Many of the unfortunate individuals in any economy are mostly treated as mere
customers, and this has made many companies encounter many challenges to ensure their
sustainability, as these customers often tend to shift their allegiance to organizations that view
the poor as partners and colleagues. The various crossroads to organizational sustainability
and global capitalism can be achieved through the various companies operating in BOP to
always be patient for organization growth rather than being inpatient for profits since growth
enable organization sustainability and eliminating the crossroads that hinder globalization and
global capitalism. The author in the book provided the various challenges to global
capitalism, which affect various organization market stability and sustainability including
terrorism. Many terrorist acts hinder peaceful operations of multiple businesses and the
growth of capitalism due to the fear of many organizations that they might encounter losses
from terrorist’s actions. This has also made it difficult for many businesses to operate in
economies which have recurrent cases of terrorism and this has affected the growth of such
economies leading to many individuals lagging in the poverty line.
The eradication of marginalization of people especially in the developing economies
where capitalism tend to fail to bear fruits would help in eradicating the various geopolitical
unrest that such economies often encounter. There is the need for eliminating the various
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anti-globalization movements, which threaten the stability of multiple organizations and
global capitalism. The threat to globalization affects the operation of numerous businesses in
various economies, which hinder the BOP from rising to a higher level of their social status.
Therefore, eliminating this crossroad will ensure the emergence of many indigenous
companies which will engage in offering technological products enhancing environmental
sustainability and economic profitability of the companies leading to sustainable living for
the BOP.
There is the need of providing the BOP with the opportunity to economically sustain
themselves and including them in any winning economic model that would enable them to
grow themselves economically and being able to sustain themselves in the capitalist world.
Focusing on a green economy by eliminating any form of pollution and concentrate on
product stewardship will always play a leading role in global sustainability. When
organizations focus on clean technology and the BOP, it will become a breakthrough towards
the evolution of discourse on sustainability as it would enable economic growth, therefore,
sustaining the increasing demand of different products by the over increasing population.
Conclusion
The author has provided the various ways of ensuring the crossroads that hinder
global capitalism, and the emergence of new global enterprises are eradicated as this limits
the BOP from being involved in any economic model. Global organizations also need to
increase their investment in BOP markets and be able to conduct their activities differently
will lead to positive results for the BOP populations compared to the various relief programs
that are often offered by the governmental and non-governmental organizations. Investing in
BOP economies also ensure that the BOP population can receive products of high quality due
to the integration of advanced technology in their production.
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Works Cited
Hart, Stuart L. Capitalism at the crossroads: Next generation business strategies for a postcrisis world. FT Press, 2010.
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