Grow The Pie: How Great Companies Deliver Both Purpose and Profit

Edmans, A (2020) Grow The Pie: How Great Companies Deliver Both Purpose and Profit. Cambridge University Press, Cambridge. ISBN 9781108494854

Abstract

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 numerous real-life examples, 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 shows how to embed purpose into practice so that it’s more than just a mission statement, and discusses the critical role of collaboration 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