Assertions on Rebecca Henderson's Reimagining Capitalism in a World on Fire (Essay Sample)

Student's Name
Professor's Name
Course
Date
Reimagining Capitalism in a World on Fire
Society Responsibility
Capitalism is one of the most significant achievements of humankind that has brought economic freedom and prosperity to the world. Nevertheless, several critical challenges are faced on a wide variety of fronts. The growing income inequality in terms of healthcare services and economic distress often puts the world to discomfort and challenging for business credibility. At the same time, pressure increases on the supply of commodities such as food, water, and shelter. Besides, the rate of environmental degradation is increasing where pollution of water sources and gas emissions are destabilizing climate. Rebecca Henderson, in her book, "Reimagining Capitalism in a World on Fire," makes some bold assentation and argues that the business world should move past profit maximization objective, to identify opportunities that will benefit the society in general.
In the book's first chapter, the author argues that companies must not only provide financial performance but also must make a positive contribution to society. I concur with the notion that firms should achieve the main goal, which is to maximize shareholder's revenue. Still, there is the need to employ strategies that will benefit communities in which the companies operate in (Henderson para.8). The business world is solely dependent on society from resources such as land, raw materials, and labor force. For this reason, firms have a purpose and a social responsibility towards communities. Production of goods in factories come with negative impacts overall. Environmental problem is one issue that is affecting the world at a high rate. Through the emission of gasses, the climate is drastically changing and transforming the world, but with stronger economic incentives. Firms have the responsibility to solve such issues and ensure the survival of all is imminent.
The business' idea of social responsibility towards saving the world is not only possible but is undeniably necessary. Companies must address social and cultural issues to benefit all parties in the process. Taking actions towards social responsibility will not only increase revenue for the business. Still, it will also ensure change and progress, for instance, helping people through job opportunities ("Why Corporate Social Responsibility Matters in Today'S Society" para. 2). When companies implement strategies that ensure the values of a society are upheld and ingrained with those of the firm, there is a positive impact in the wat business activities carried out. Taking environmental and social responsibility ensures a company has a solid background in terms of market and brand. Consumers are more interested in products they believe in and those that are easier to engage in ethically. Long term capabilities of firms solely depend on the responsibilities of society. Notably, the well-being of the community is entirely dependent on the profitability of business enterprises.
Companies globally often emit fossil fuels that harmful to the environment; for instance, the production of cement or steel result in waste products. These unwanted products are disposed of to the air since the energy used is intensive, thus leading to significant damage (Henderson 23). Businesses have the responsibility to create opportunities where the market can change these occurrences and make better environments for society. Companies that embrace social responsibility greatly benefit through an increase in revenue and customer base. It is vital to keep in mind that the effects of doing business are more than just financial gain.
Creating Shared Value
Organizations opt to create economic value in such a way that society's challenges and needs are addressed. Rebecca argues that industries are the critical factors for the circular economy to be realized in a way that the increasing global waste problem and squeeze for the future supply of natural resources are taken seriously and put into consideration. The circular economy that is generative and restorative has become clear to more firms over the years. Companies like Nike have strived to minimize resources used through recycling products to transition the economy through shared value (Ceschin and Gaziulusoy 132). Through shared value, firms have an opportunity to redesign products as well as engage in meaningful transformation. New ways that engage the entire society are discovered through shared values, which ensures that corporations deliver and have a social impact.
I concur with the author of the book that capitalism is gradually fading away because there are no more collaborations in the society regarding environments within businesses. Creating shared value can bring forward corporate responsibility and economic needs that define industries (Wójcik 39). Notably, the creation of shared value is not a philanthropic act but a center of how businesses operate. More so, it is the center of how companies redistribute resources in ways that increases value for all stakeholders, thus encompassing the effects on society. One of the purposes of an organization is to serve social needs and to accomplish this, factors such as profit should not be much of a consideration for a firm's existence. Looking beyond the realms of business towards social challenges will ensure that new opportunities are discovered; for instance, rather than digging for raw materials, corporations can recycle the existing ones and make the environment healthier while gaining from the activities. Companies must bear in mind that there exists no tradeoff between societies and businesses, and increased value is achieved when both parties work together.
Creating shared value is not a framework of making firms feel good about practices and activities carried out. Still, the author, Rebecca, hopes that this will be a stage where markets and competition are understood. Conducting business activities in the same environments where there is a degradation of resources and profit-oriented will not be a viable option. Companies must find other effective ways of doing business if the world and capitalism are to survive. There is a need to move from strategies that ensure social and environmental capital is fundamentally free to those where there is a need to operate within ecological limits in the community. Such transitions can be immensely unsettling but will act as a source of vast opportunities. Even though the transitions might be slow, essential resources will be saved, as well as global change and planetary stewardship.
Change opportunities are numerous, and it will entail all stakeholders to be accountable. Problems associated with climate is as a result of our doings directly or indirectly. As a result, we can all take part in creating the world a better place for the coming generations (Ceschin and Gaziulusoy 123). Organizations should make real steps for change like the Norwegian firm in the case narrated by Rebecca Henderson, which is a good example. Sarah Parkin terms a keen participant as an organization that ensures sustainability despite unhealthy processes and structures used (Parkin 27). Reimagining capitalism will not only be inclusive of creating a shared value but will also involve changing ways in which firms are run. The need to address environmental effects through approaches such as