Rethinking the Corporation’s Role in Society

Colin Mayer’s Firm Commitment: Why the Corporation Is Failing Us and How to Restore Trust in It is a sharp critique of the modern corporation and its deviation from its original purpose. Mayer argues that businesses have prioritised short-term profits and shareholder returns at the expense of broader societal needs. He calls for a reimagined form of capitalism—one that serves not just investors but also employees, customers, communities, and the environment.

Mayer’s analysis is both timely and persuasive, delving into the pressures that have led businesses to forsake long-term value creation. He warns that corporate governance, fixated on quarterly earnings and stock performance, has contributed to declining trust in institutions. His prescription is radical yet pragmatic: companies must embed responsibility at their core, ensuring they generate sustainable benefits for all stakeholders.

One of Mayer’s most compelling insights is his assertion that corporations must evolve to address pressing global challenges, from climate change to economic inequality. He argues that the structures of modern business must change to foster accountability, resilience, and long-term thinking—shifting the focus from ownership to stewardship.

Mayer’s call for a fundamental shift in corporate governance resonates with an increasing consensus among business thinkers: the shareholder-centric model is outdated. Instead, firms that integrate purpose into their strategy will be best positioned to navigate the complexities of today’s world. In Firm Commitment, Mayer provides a compelling roadmap for a new corporate paradigm—one that restores trust, balances profitability with responsibility, and redefines success for the 21st century.