Notes

Foreword

1. See the three articles published in Brewery Journal #3 (January 2014) dedicated to “Exploring Mutuality”: the editorial by Stephen M. Badger II, Guest Editor and Chairman of the Board, Mars, Incorporated; “The Mars Mutuality Journey” by Paul S. Michaels, President, Mars, Incorporated; and “The Economics of Mutuality” by Bruno B. Roche and Jay F. Jakub, Catalyst, Mars, Incorporated. Source: www.freuds.com/the-brewery.

Introduction

1. Again, a point of reference for understanding the roots of the economics of mutuality is the special edition of the Brewery Journal (no. 3, January 2014) dedicated to “Exploring Mutuality.” Source: www.freuds.com/the-brewery.

2. Still ongoing with Oxford University’s Saïd Business School as part of the collaborative research platform called Mutuality in Business: Adoption and Impact of Mutuality Metrics. Source: www.sbs.ox.ac.uk/faculty-research/research-projects/mutuality-business.

3. Global Footprint Network is an independent think tank that is known for computing the Ecological Debt Day (also known as Earth Overshoot Day), which is the day when humanity has exhausted nature’s budget for the year.

4. Jubilee is an ancient concept that refers to a fifty-year cycle whereby slaves are emancipated, land is returned to its former owners, and cultivation of the land is temporarily suspended to allow for rest and regeneration.

Chapter 1

1. The labor share is the part of national income allocated to labor compensation, while the capital share is the part of national income going to capital. A falling labor share often reflects more rapid growth in labor productivity than in average labor compensation, and an increase in returns to capital relative to labor.

2. The Labour Share in G20 Economies. Report prepared for the G20 Employment Working Group, Antalya, Turkey, February 26–27, 2015.

3. Source: Global Footprint Network 2016, http://www.footprintnetwork.org.

4. A derivative is a traded security whose price is derived from one or more underlying assets. The derivatives market is estimated by some analysts to be more than ten times the size of the total gross domestic product of the entire global economy and may actually be as much as the unimaginable sum of $1.2 quadrillion. Although there is not a consensus about the actual size of the derivatives market—as it may vary dramatically whether the focus is on the market value or the notional value—it is still staggering, and whatever the calculation methods, derivatives comprise an impressive proportion of worldwide investments.

5. Brian Merchant, “How Many Gallons of Water Does It Take to Make . . .” Treehugger.com, June 24, 2009.

6. United Nations University—Institute for Water, Environment, and Health.

Chapter 2

1. Peter Warr, “Well-Being and the Workplace,” in Well-Being: The Foundations of Hedonic Psychology, eds. Daniel Kahneman, Edward Diener, and Norbert Schwartz (New York: Russell Sage Foundation, 1999), 392–412.

2. J. K. Harter, F. L. Schmidt, J. W. Asplund, E. A. Killham, and S. Agrawal, “Causal Impact of Employee Work Perceptions on the Bottom Line of Organizations,” Perspectives on Psychological Science 5, (2010): 378–389.

3. A. Edmans, “Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices,” Journal of Financial Economics 101 (2011): 621–640.

4. P. Böckerman and P. Ilmakunnas, “The Job Satisfaction-Productivity Nexus: A Study Using Matched Survey and Register Data,” Industrial and Labor Relations Review 65 (2012): 244–262.

5. M. Riketta, “The Causal Relation Between Job Attitudes and Performance: A Meta-Analysis of Panel Studies,” Journal of Applied Psychology 93 (2008): 472–481.

Chapter 3

1. A point of reference for understanding the concept of social capital as studied by economists is the chapter written by Steven Durlauf and Marcel Fafchamps in Handbook of Economic Growth, vol. 1 (2005), chapter 26.

2. Marcel Mauss, “Essai sur le don. Forme et raison de l’échange dans les sociétés archaïques,” L’année sociologique Tome 1 (1990): 30–186 (The Gift: The Form and Reason for Exchange in Archaic Societies).

3. Pierre Bourdieu, “The Forms of Capital” in Handbook of Theory and Research for the Sociology of Education, ed. John C. Richardson (New York: Greenwood Press, 1986), 241–258.

4. Francis Fukuyama, “Social Capital and Civil Society” (IMF Working Paper 74, 2000).

5. C. Grootaert, D. Narayan, V. Nyhan Jones, and M. Woolcock, “Measuring Social Capital: An Integrated Questionnaire” (World Bank Working Paper no. 18, 2004).

Chapter 4

1. Natural capital, as we define it for our purposes in a business context, is simply the value of raw materials used in the manufacture of goods.

2. In this model, inputs refer to all resources that are used for a specific activity, and outputs are all direct effects of the activity. Outcomes are the short- to mid-term effects caused by the outputs, while impacts are defined as long-term effects of the outcomes. Source: Justus von Geibler, Francesco Cordaro, Katharina Kennedy, Michael Lettenmeier, and Bruno Roche, “Integrating Resource Efficiency in Business Strategies: A Mixed-Method Approach for Environmental Life Cycle Assessment In the Single-Serve Coffee Value Chain,” Journal of Cleaner Production 115 (2016): 62–74.

3. Justus von Geibler et al, “Integrating Resource Efficiency in Business Strategies,” 62–74.

4. Factor Four is a concept introduced by Ernst von Weizsacker and the Wuppertal Institute, along with Hunter and Amory Lovins of the Rocky Mountain Institute, suggesting that with existing technologies, business can reduce by 75 percent the natural resources it consumes through a focus on inputs efficiency, while raising productivity fourfold. Its more ambitious successor concept, called Factor Ten, takes the Factor Four theory further, suggesting mankind must reduce inputs by 90 percent over the next thirty to fifty years, while raising resource productivity tenfold, given the rate of resource depletion.

Chapter 5

1. PPP approximates the adjustments needed to calculate the relative value of a currency to a local currency.

Chapter 6

1. Rich in terms of social and human capital but poor in terms of financial capital (with a majority below the poverty line).

2. A point of reference for understanding the hybrid value chain concept is the Harvard Business Review article “A New Alliance for Global Change” by Bill Drayton and Valeria Budinich, from the September 2010 issue.

3. Technoserve is a Washington, DC, based international nonprofit organization that develops business solutions to address poverty issues in developing countries. Source: www.technoserve.org.

Conclusion

1. Klaus Schwab, The Fourth Industrial Revolution (New York: Crown Business, 2017).