Introduction and Overview
Editors Colin Mayer and Bruno Roche outline the Economics of Mutuality model and the major themes discussed in the book. They propose that the essence of modern economics and management is a battle for purpose in a world of rapidly increasing complexity and confusion. Not just having a purpose, but making that purpose real at every level of the organization.
Mutuality and Mars
A broad exploration of the changing relationships between business, finance, social flourishing, and morality. And a specific exploration of the concept of mutuality within Mars, which traces its roots back to a letter written by Forrest Mars in 1947 on the ‘Objective of the Company’ that emphasizes the importance of stakeholders, not just shareholders.
Responsible Business Theories
Where does the Economics of Mutuality fit within the context of a wider set of purposeful business concepts, such as corporate social responsibility (CSR), creating shared value (CSV), and stakeholder theory? Do these ideas represent fundamental paradigm shifts in business or are they just old products in new packaging? Is corporate purpose at the core or the periphery?
Corporate Purpose and Ecosystem Orchestration
A study into the power of orchestrating ecosystems around a corporate purpose defined as an authentic and dynamic meaningful challenge. The Economics of Mutuality redefines a stakeholder’s ‘stake’ in the purpose as a forward-looking opportunity to co-create value, instead of a backward-looking opportunity to capture value created by the corporation on its own.
Metrics and Measurement
An explanation of how companies can deliver corporate and ecosystem purposes by measuring and managing human, social, and natural capital — as well as financial capital. A new set of metrics are designed to capture the pain points in an ecosystem that need to be addressed and the success of the interventions created to address them.
Accounting
The principles behind designing a system of accounting for responsible business are considered — and a new approach is offered: the Mutual P&L. This innovation is an extension of the financial P&L that takes into account selected human, social, and environmental issues that are relevant for the organization and its ecosystem in working toward a stated purpose.
Finance, Investment, Ownership, and Engagement
A look at how the principle of mutuality can reshape finance, investment, ownership, and engagement for the good of society and the natural world — as well as for stronger business performance. Featuring discussions about the potential of microequity, the impact of mutuality on ownership, the influence of large investment funds, and the impact of NGO activism.
Case Studies
Fourteen detailed case studies illustrate how companies of different sizes, sectors, and geographies have put purpose into practice. These stories give deep insights into the ways in which companies can build purposeful businesses by mapping and shaping their ecosystems, identifying failures and problems, aligning management, and creating new partnerships.
Conclusion
Editors Colin Mayer and Bruno Roche pull together the themes discussed and point to the next steps. They conclude that, while the book has provided a powerful demonstration of the practical reality of transforming business models to put purpose into practice, it has also revealed how much further we need to go before this becomes the conventionally accepted norm.