A Capitalist Manifesto for the 21st Century

Capitalism, as currently practised, is failing. So argues Rebecca Henderson in Reimagining Capitalism: How Business Can Save the World, a book that seeks to upend the conventional wisdom that firms exist solely to maximise shareholder value. The system, she contends, is driving inequality, environmental catastrophe, and systemic fragility. Yet, rather than advocating for capitalism’s demise, Henderson offers a blueprint for its reinvention—one in which businesses embrace a broader purpose and recognise their role in shaping a sustainable and just society.

Henderson’s central thesis is that companies must move beyond the narrow pursuit of short-term profits. The businesses that will thrive in the future, she argues, will be those that integrate social and environmental concerns into their core strategies. This is not merely a moral argument but a pragmatic one: firms that ignore these shifts risk losing legitimacy in the eyes of consumers, employees, and investors alike.

At the heart of Reimagining Capitalism is a call for systemic change. Henderson is clear that individual companies, no matter how well-intentioned, cannot drive transformation in isolation. They must work within a broader ecosystem—collaborating with governments, civil society, and even competitors to reshape the rules of the game. It is here that she is at her most persuasive: unfettered capitalism, she argues, is not a natural state of affairs but a product of political choices, and those choices can—and must—be reimagined.

The book is not without optimism. Henderson offers concrete examples of businesses that have successfully embraced this model, demonstrating that purpose and profit need not be in conflict.

Yet, for all its strengths, Reimagining Capitalism leaves some questions unanswered. Henderson is vague on how entrenched interests—those with the most to lose from such a transformation—might be persuaded to embrace change. The shift she envisions requires not just corporate will but regulatory and cultural shifts that may be difficult to achieve in practice.

Nonetheless, her argument is compelling. For leaders who recognise that capitalism must adapt or risk collapse, Reimagining Capitalism is an essential read. It does not offer easy solutions, but it does provide a powerful framework for those willing to rethink the role of business in a world that can no longer afford short-termism.