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Grow the Pie

Alex Edmans

Grow the Pie

by Alex Edmans

Grow the Pie

Alex Edmans

5 min
3 key insights
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Finance professor Alex Edmans argues that generating wider value for society makes good economic sense and is essential for a business's survival.

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Grow the Pie

by Alex Edmans

Grow the Pie

Alex Edmans

Overview

Today, capitalism is facing a crisis, as rising inequality and ecological damage fuels calls for regulation and for large multinationals to be broken up. But can corporations act for the greater good rather than solely increasing shareholder value?

Alex Edmans is a professor of finance at the London Business School. In this book, Edmans presents a case for why generating profit while creating social good is not an unrealistic goal, but a necessary one.

How the pie is divided is important, but growing the pie is still crucial. Rather than cutting profits or executive pay, companies can grow the pie by increasing the total social benefit that the company creates.

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Favorite Quote

"The 100 Best Companies to Work for in America delivered stock returns that beat their peers by an average of 2.3 to 3.8% per year over a 28-year period."

Alex Edmans

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Grow the Pie

Alex Edmans

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