Index
Note: Page numbers in italics indicate figures; those ending in “t” indicate tables.
abiotic materials, 90–92, 91t, 98, 129t, 130, 137, 154
access, 43
actionability, 7, 20, 85, 93, 129
Africa, 62, 124. See also specific countries
inefficiency of foreign aid in, 71
natural resources from, 145
agrarian economy, 15
agriculture, 129, 130. See also specific crops
air, 90–91, 91t, 98, 129t, 130, 137, 154
Airbnb, 17
American Enterprise Institute (AEI), 35
approach, 61–63
Asia, growth in, 17
assessment, 154
assets, unrecognized, 132–33
Ateneo de Manila, 50
authors
journey of, 8
vision of, 3–4
Bank of England, 11
base of the pyramid (BoP) markets, 108, 109, 110
behavioral attitudes, 80
cooperative, 60
expansion of, 39
sharing of, 28–29
Berlin Wall, fall of, 12–13, 27
big data analytics, 16
biodiversity offsetting, 44
biodiversity use, 90–91
biotic inputs, 127
biotic materials, 90–91, 91t, 98
Bloom program, 113, 121–22, 124
basic schematic of, 122
Böckerman, Petri, 60
bonus payments, 117
Boston University, 50
bottom line, triple, 26
bottom line net earnings, vs. top line gross revenue, 31–32
Bourdieu, Pierre, 72
Britain. See United Kingdom business. See also enterprise
evolving roles and responsibilities of, 157–58, 159
restorative power of, 17–18, 24, 145
business ecosystems, 20, 23, 139–42
mapping exercise, 54–55
business practices, 158
business priorities, rebalancing, 9
business sustainability, 4–5. See also sustainability
“cake division” fallacy, 104
Canada, 145
capital
actionable, 152
completion of, 125
correlations across types of, 120–21
costs of, 141–42
definition of, 10
etymological meaning of, 10
expanding definition of, 25–56
forms of, 5, 18, 42, 56, 111, 118, 131–43, 149–50
global tax on, 21–22
hidden shortage of other forms of, 36–37
key variables, 152
kinds of, 6t
links between types of, 138–39
measuring, 6t
nonfinancial, 19, 26, 28, 33–34, 36–37, 56, 139–43, 149–50, 158–59
parsimonious, 152
related to performance, 152
remuneration of, 131–43
stable, 152
capital intensity, attributed value and, 106
capitalism
benefits of, 39
conscious, 26
incomplete, 26
leveraging power of, 18
mono-capital form of, 18–19, 22, 39
capitals, weighing of, 138–39
case studies, 106, 107–25, 127–30
Central Bank of Japan, 11
central banks, 11. See also specific banks
CFCs (chlorofluorocarbons), 89
challenges to, 26
influence of, 29
questioning relevance of, 2
Churchill, Winston, 163
citizen-sector organizations (CSOs), 111, 113, 115
CO2, 44–45, 88. See also carbon footprint
Coca-Cola, 115
cocoa farmers, 70–71, 77, 104–5
coffee, 91–92, 96, 98, 100–105, 102, 127–30, 137–38, 141–42
comparative analysis of coffee value chain, 102
comparative analysis vs. other commodities, 100–102, 102
financial capital analysis of, 101t
input analysis of, 129t
journey of cup of coffee, 129t
revenue sharing model for, 100–102
coffee farmers, 70–71, 76–77, 103–4
cognitive social capital, 78, 79, 79t
collective actions, capacity for, 79–81, 79t, 79, 80–81, 84, 120, 132, 137, 153
Colombia, 127–31
Columbia University, 50
benefits to, 119
building, 137
growth and, 69–85
comparative analysis, 102
competitive advantage, 113
completed capitalism model, 49–50, 125
as a non-rival good, 50–52
complex value chains, 32–33
conscious capitalism, 26
contribution, forms of, 41
cooperative behavior, 60
corporate identity, 59, 62, 67, 152
corporate social responsibility (CSR) initiatives, 1–2, 4–5, 21, 23, 45–46, 88, 119, 124, 160
corporate values, 62, 132, 136
corporations, 27–28
correlations, maximizing positive, 138–39
creativity, 60
currency, 35
Dandora, 118
data mining, 63
data sources, 61–63
decision-making process, 80
deflation, 11–12
“degrowth” movement, 37–38
differences, 40–41
distribution curves, 104, 105, 106
dual-use investments, 142
Durlauf, Steven, 73
Easterly, William, “Can Foreign Aid Buy Growth,” 71
EBITDA (earnings before interest, taxes, depreciation, and amortization), 48
Ecclesiastes, 24
Ecole Nationale Supérieure de Statistique et d’Economie Appliquée in Côte d’Ivoire (Ivory Coast), 50
“ecological footprint,” 32
economic bubbles, 11–12
economic development
social capital and, 84
three inputs needed to nurture, 9–10, 13
economic model(s)
changes in, 15–17
since early 1970s, 14–15
economics, as management of scarce resources, 14
economic shifts, pain of transitions, 27
economic transitions, 146
from West to East, 145–46
Edmans, Alex, 60
Einstein, Albert, 161
electronic payment, 111
employees, social capital among, 59, 63–66, 67, 152
end-of-life, 129
England. See United Kingdom entrepreneurs, 19, 24, 40–42, 55, 83–84, 108, 116–20, 122, 143, 150
higher margins for, 123
micro-entrepreneurs, 82–84, 105, 107, 109, 110, 114–21, 119, 163
environmental crisis, 15
environmental good, investing in and accounting for, 21
environmental impact, knowledge of, 46–47, 48
environmentalism, 19
environmental performance, 44–45
environmental resources, scarcity of, 14
environmental schools of thought, 88
environmental sustainability, 45–46
environmental transformation, 151
environmental well-being, 20, 21, 23
expansionary monetary policy, 35
external reporting, 44–47
Facebook, 16–17
Factor Four concept, 93–94, 93, 98
Factor Ten concept, 93
fast-moving consumer goods (FMCG), 31, 32, 32
financial assets bubble, 148–49
financial capital, 9, 23, 53–54, 110, 121
abundance of, 14
access to, 117
excessive accumulation of, 151
going beyond, 32–34
liquidity of, 11–12
management of, 158
measuring, 120–21
in new economic context, 149
next steps required, 106
overabundance of, 34–37
recalibrating, 99–106
successor system, 27
summary of key shared capital findings, 106–7
financial capital analysis, of sachet of coffee, 101t
financial capitalism model, 9, 14, 19, 25. See also Friedman model
questioning completeness of, 19
shortcomings of, 159
uprooting dysfunctions of, 1–24
financial capital metrics, 16–17
financial capital model, 1–2
financial crisis of 2008, 2, 10, 25, 35, 147
new open-mindedness after, 29
wake-up call, 25–27
financial performance
management of, 22
metrics and, 19–20
financial services, 16
Fink, Larry, 155
firm-centered drivers, 63
firms, traditional legal boundaries of, 32
Forbes, 148
foreign aid, inefficiency of, 71
foundations, 52
“Fourth Industrial Revolution,” 146
France, 145
freedom, 118
Friedman model, 1–2, 9, 14, 18–19, 21–22, 25–26, 28, 39, 43, 157–58
maxim of sole social responsibility of the business = shareholder profits, 49
profit maximization and, 31–33, 132, 136
G7, 145–46
Gallup Q12 Employee Engagement Survey, 47, 48, 61–63
Geibler, Justus von, 92
Ghana, 81–82
global financial assets, inflation of, 11–12
Global Footprint Network (GFN), 14–15,
global money supply, 11, 34–36
gold standard, 35
good agricultural practices (GAP), 81
“good servant,” role of, 161–62
Gorbachev, Mikhail, 39
greenhouse gas emissions (GHG), 44, 48
Grootaert, Christiaan, 73
growth
communities and, 69–85
low levels of, 12
sustainability and, 31
guest accommodation industry, 17
habitat services, 44
Harter, Jim, 59–60
Harvard Business School, 50
holistic performance, 5, 8, 20–21, 23
holistic value optimization, 3, 13
horizontal organizational density, 80
hot spot analysis (HSA), 92–93, 129, 154
measuring effectiveness in dealing with, 129–30
human capital, 5, 6t, 9, 33–34, 36, 52–53, 110–11, 139–43, 149–50, 160–61
business performance and, 59–60, 109
case studies, 107–25
conventional and unconventional sources of, 58–59
definition of, 57
development of, 53–54
five components of, 63–67, 66t
five drivers with positive effect on, 63–67, 66t
forms of, 58–60
key variables, 152–53
management of, 22
in Maua, 107–25
measuring, 6t, 57–68, 109, 114, 119–21, 131, 132–33
metrics for, 158–60
monetization of, 34
summary of well-being findings, 67–68
temptation to monetize, 132–33
unconventional sources of, 58–60
value and, 132–33
hybrid value system (HVS), 54–55, 110, 111–15, 113, 118, 121–22, 125
imperative to act, 38–39
income, 110
income distribution, 100
incomplete capitalism, 26
Indonesia, 77
induction process, 114–15
industrial economy, 15–16, 146
industrialized countries, 145–46, 148–49
inflation, 11–12
inorganic material. See abiotic materials input analysis, 128–30, 129t
inputs approach, 44, 53, 88–98, 127, 129
measurability and, 90
measurement through five metrics, 90
metrics and, 90–91
parsimony, 90–91
three inputs needed to nurture economic development, 9–10, 13
inputs vs. outputs approaches, 88–98, 127
comparison of input and output approaches, 95–97
complementarity of inputs and outputs, 95–97
institutional voids, 112
institutions, 52
International Institute for Management Development (IMD-Lausanne), 50
International Labour Organization, 32
International Monetary Fund, 11, 148
international organizations, 54
investors, 149
Italy, 145
Jakarta, Indonesia, 143
Jevons effect (Jevons paradox), 97
job skill development, 137
Jubilee, concept of, 23–24, 135, 150–51
justice, 42
Kenya, 62, 77, 83t, 107–25, 163
key performance indicators (KPIs), 114
knowledge economy, 16–17, 41, 146
“knowledge flow,” 16
Kyoto Protocol, 44
labor, scarcity of, 14
labor markets, 32–33
labor productivity, wage growth and, 32
lagging indicators, 158–60
land, 90–91
overuse of, 134
ownership, 15
remuneration of, 134
Lenin, Vladimir, 37
life cycle analysis, natural capital inputs and, 90–91
line manager effect, 63–67, 68, 132, 153
Ma, Jack, 156
MAC (margin after conversion), 49
management, 31–33
management methodology, establishing new, 37–38
management metrics, 48
management practices, 52, 53–54, 158
experimentation with, 150
mutuality-related, 53–55
Manila, Philippines, 121–24, 143
markup level, 100
Mars, Incorporated, 1, 3, 4, 61–63, 100, 110, 115, 124
Mars University, 115
Marx, Karl, 37
Massachusetts Institute of Technology, 50
basic route-to-market, 112
the big dram, 124
context for, 110
game-changing potential of, 124–25
profit and loss in, 120t
rapid development in, 116–18
reflection on design and results, 118–21
start-up in, 114–16
taking program to the Philippines, 121–24
Mauss, Marcel, 72
“The Gift: The Form and Reason for
Exchange in Archaic Societies,” 72
methodology, new, 43
actionable, 7
expanding, 132–33
external vs. internal, 48–50
financial capital metrics, 16–17
of financial performance, 19–20
for human capital, 158–60
impact, 158–60
inputs approach and, 90–91
leading vs. lagging, 48–49
management and, 33
measurement methodology, 113–14
monetized, 138
for natural capital, 158–60
new, 5, 7, 20, 22–23, 28, 37–38, 111, 158
“output” metrics, 44
parsimonious, 7
related to performance, 7
reporting, 48
for social capital, 158–60
stable, 7
micro-distribution, 107–12, 115, 122, 163
microeconomic analytic techniques, 63
micro-entrepreneurs, 82–84, 105, 107, 109, 110, 114–21, 163
microfinance lenders, 54, 81–83, 111, 113, 113, 117, 123
micro-sellers, 116–17
middle class, growth of, 17, 146
minimum income, 106
MIPS (Material Input Per Unit of Services), 92
mitigation banking, 44
definition of, 10–11
generation of, 16
as “good servant,” 161–62
intrinsic devaluation of, 12
new (questionable) value of in recent times, 10–12
overabundance of, 34–37
remuneration of, 161–62
role of, 151
value of, 10–12
money supply, 11, 34–36, 148, 149
moral perspective, counterintuitive, 40–43
morals, 3
M-Pesa mobile banking, 113, 117
multinational corporations, 3, 51–52, 125
BoP markets and, 108
evolving roles and responsibilities of, 157–58, 159
focus on, 7–8
role in development and enactment of new model, 27–28
role of corporations in development and enactment of new model, 27–28
multiple-capital business model, 33, 158
bringing the model to life, 18–23
key performance indicators, 123
measuring business performance, 109
as a non-rival good, 50–56
role of corporations in development and enactment of new model, 27–28
business performance and, 121
principle of, 18
profits and, 99–106
value creation and, 121
mutual profits, 142–43
Nairobi, Kenya, 107, 108, 109, 121, 143
natural capital, 5, 6t, 15, 33–34, 52, 127, 136, 139–43, 149–50, 161
audits of, 46–47
case study, 127–30
development of, 53–54
factors accounting for use of, 90–91
key variables, 154
management metric for, 44–45
management of, 22
managing, 87–88
measurability of, 98
measuring value of, 132–33
natural capital efficiency, 98
natural capital productivity, 93–94
next steps for, 130
performance measurement of, 43–45
remuneration of, 134–35, 137–38, 161
return of, 137–38
scarcity of, 36
summary of key findings, 98
temptation to monetize, 132–33
natural resource inputs, 9, 88–89
actionability, 92
assessment, 92
data inventory, 92
five key metrics of, 90–92, 91t, 98
life cycle analysis and, 90–91
managing, 88
measurability of, 98
measurement through five metrics, 90
updating, 92
from Africa, 145
limited, 87
overuse of, 134
remuneration of, 134–35
renewal of, 87
uses of, 128
negative interest rates, 12, 14, 149, 151–52
net sales value (NSV), 48
new economy
investing in, 149
rules of, 150–51
NGOs (nongovernmental organizations), 52, 54, 81, 113, 113, 115, 118, 123
Nixon, Richard, 35
nonfinancial capital, 19, 28, 36–37, 139–43, 149–50, 160–61, 163
development of, 143
managing, 150
measuring, 43, 119–20, 131–33, 158–60
performance measurement of, 43
value of, 132–33
nonprofits, 118
non-rival goods, 50–51
nontraditional entities, partnering with, 54
nontraditional partners, 118
“100 Best Companies to Work for in America,” 59–60
open collaborative platform approach, 51
operating costs, 141–42
operational status, 130
Opportunity International (OI), 81
optimal value distribution, 102
organic material. See biotic materials, 90–91, 91t, 98, 129t, 130, 137, 154
Organisation for Economic Co-Operation and Development (OECD), 32, 90
Ostrom, Elinor, 74
output approaches, 44–45, 88–90, 97, 127
limiting output, 89
measurability and, 89–90
measuring output, 89
“output” metrics, 44
outsourcing, 32–33
overhead, 123
overwork, 23
ownership, 135. See also property
land ownership, 15
of relationships, 16
Oxford University, 50, 115, 130, 141
ozone layer degradation, 89
pain points, 20, 33, 82–83, 112
parable of the talents or minas, 42
Paris Climate Accord, 155
Paris School of Economics, 50, 58, 62
partnering, 51–52, 54–55, 125. See also thought-partnering
people, 9–10, 13, 23, 34, 36–37, 43. See also human capital
holistic value of, 20
metrics measuring, 47
people metrics, 47
remuneration of, 32
performance, 60
business sustainability and, 4–5
evaluating, 158
holistic business performance, 7, 8
human capital and, 59–60
impact of natural capital efficiency on, 98
measuring, 7, 19–20, 32–34, 43, 52–53, 113–14, 159–60
mutuality in business and, 121
of nonfinancial capital, 43
social capital and, 69–70
well-being and, 59–60
taking Maua program to, 121–24
Piketty, Thomas, Capital in the Twenty-First Century, 21–22
pilots, 21, 77, 80–84, 83t, 103–4, 138, 159
approach underpinning, 152
Bloom program, 121–24
cocoa, 104–5
coffee, 91, 96, 98, 100–105, 102, 127–31
key principles underpinning, 152–60
planet, 9–10, 13, 15, 23, 34, 36–37, 43
holistic value of, 20
overexploitation of, 23
remuneration of, 32
planet accounting system (PAS), 92, 94–95
planet assessment, methodologies of, 92
planet metrics, current, 44–47
Poleman, Paul, 155–56
population growth, 36
POUM (Prospect of Upward Mobility) effect, 64, 68, 152
pragmatic approach, 39–40
The Fortune at the Bottom of the Pyramid, 143
priorities, realignment of, 161–62
procedural conditions, 58–59
processing, 129
production, 127
product life cycle, 128–29
profitability, 18, 20, 25–26, 31–32, 50–56.
finding “right” level of, 18, 29, 139, 162
holistic value of, 20
maximization of, 21, 23, 25, 31–33, 49, 124, 132, 136, 157
relationship between past and future, 31
shareholders and, 139–40
sustainability and, 31, 141–43
tradeoff of, 45–46
true, 162
value and, 29–30
property, 135
property rights, 135
culture of, 146
shared, 24
sustainable, 21
purchasing power parity (PPP), 100, 101
qualitative data, 106
quality of life, 105. See also well-being
quantitative easing (QE), 11, 17, 35–36, 148, 149, 158
questionnaires. See surveys
recognition, 153
recruitment, 114–15
ownership of, 16
religious organizations, 54
remuneration, 9, 52, 53, 161–62
being intentional, 139–42
deciphering and documenting links between types of capital, 138–39
finding “right” level of profit, 139–42
guiding principles, 133
harmonious, 23
on like-for-like basis, 133, 136–38
of new forms of capital, 131–43
remuneration curves, 105
Sabbatical principle, 133–36
replication, 124
research, 61–63
resource efficiency, 43–48, 88–89, 96–97, 98, 127, 129–30
responsibility, 160–61
rest, 136–37. See also sabbatical principle
restoration, 17–18, 24, 136–37, 145
retail outlets, 112
retention rates, 60
revenue, distribution of, 100–102
riskless environments, 136–37
risk management, 149–50
rival goods, 51
Roosevelt, Franklin, 160–61
ROTA (return on total assets), 49
route-to-market approaches, 55, 107, 110, 118
rural communities, 121
Sabbath year (shmita), 134, 135
sabbatical principle, 133–37
Saïd Business School, 115, 130
scalability, 66, 109, 117, 124, 130
scarcity
changing nature of, 14
forms of, 14–15, 36–37, 146–47
of natural capital, 36
Schwab, Klaus, 146
self-centered drivers, 63
Senik, Claudia, 58
Shabbat, 133–35
shared benefits, 154
shared financial capital, 5, 6t, 52–53, 99–106, 102, 136, 154
business performance and, 109
measurability of, 105
measuring, 105, 109, 114, 119, 120
relevance of, 106
shared prosperity, 24
shared value, 26
shared value index, 53, 100, 105, 152, 154
shareholders, 19
maximization of shareholder value, 25, 28
profits and, 29, 49, 139–40, 147
share-out sessions, 116
sharing experience, 116
Skoll Center for social entrepreneurship, 113
slum dwellers, 107–8, 118, 121–22
slums, 118
small- and medium-size enterprises, 51–52
“social business” strategies, 125
social capital, 5, 6t, 9, 33–34, 36, 52–53, 136, 139–43, 149–50, 153
actionability and, 85
actionable in business operations, 85
among employees, 59
approach to concept of, 70–71
attitudes and, 79t
behavioral variables, 79
behavior and, 79t
business performance and, 69–70, 109
business relevance of, 85
case studies, 107–25
challenge of measuring, 75–79
cognitive components of, 78, 79, 79
collective actions and, 80, 84
component variables of, 84
decision-making process and, 80
development of, 53–54
as diagnostic tool, 83–84
economic development and, 84
exclusion and, 80
horizontal organizational density and, 80
identity variables, 79
impact of economic development, 84
key results, 80–85
key variables, 153
landscape across various pilots, 83t
management of, 22
in Maua, 107–25
measuring, 6t, 69–85, 109, 114, 119–21, 131–33, 160
metrics for, 158–60
projects undertaken between 2009 and 2015, 78t
qualitative measurement, 75–79
quantitative measurement, 75–79
scalability of data collection and, 84
social cohesion and, 84
socio-demographics and, 80
solidarity and, 79t
structural components of, 78, 79, 79t, 79
summary of key findings, 84–85
summary of projects, 2009-2015, 78t
value of, 132–33
variables of, 76–81, 79t, 79, 84
Social Capital Assessment Tool, 77–78
social capital projects, 76–78, 78t
social cohesion, 80, 84, 120, 132, 137, 153
social division, 80
social expenditures, 26
social interactions, among coworkers, 59
socialism, 19
social justice, inequality and, 40–41
social recognition, 64–65, 68, 136
social responsibility, 25, 157–58
social transformation, 151
Social Venture Network, 26
socio-demographics, 80
soil, 90–91, 91t, 98, 129t, 130, 137, 154.
Solow, Robert, 73–74
Sorbonne, 50
stakeholders, 29, 49, 56, 83, 101, 104, 110, 112, 132, 139, 141, 159
benefits to, 120–21, 123, 149–50
mapping, 54–55
trust and, 112
value chain and, 55, 100, 102, 147
value sharing among, 106
Stalin, Joseph, 37
Stanford University, 50
Stiglitz, Joseph, Freefall, 148, 150
stock market indexes, rise in, 36
stock point, 112, 112, 116, 122
structural social capital, 79t, 80
submanagers, 106
subsistence traders, 112
supplier communities, 81
supply chains, 46, 47, 81, 104, 105, 106
sustainability, 4–5, 9–10, 15, 18, 20–21, 36, 50–56, 88, 109, 137, 147, 160
environmental, 45–46
growth and, 31
holistic, 24
sustainability programs, 31
sustainable profits, 142–43
systematic benchmarking, 139
Tamny, John, “The Fed is Not Printing
Money, It’s Doing Something Much Worse,” 148
technology, 16, 32, 96–97, 146–47, 162–63
temptation to do nothing, 38–39
thought-partners, 50
top line gross revenue, 31–32, 100
topsoil erosion, 90–92, 91t, 127, 128, 154
traditional boundaries, going beyond, 32
triple bottom line, 26
trust, 79–81, 79t, 84, 112, 120, 121, 123, 132, 137, 153
turnover rates, 60
Uber, 17
University of Indonesia, 50
University of Wisconsin, 50
UN Millennium Development Goals, 156, 161
UN Sustainable Development Goals, 156–57, 161
upheaval, 38
upward mobility, 63–67, 132, 136
urban communities, 121
assessing, 19–20
attributed, 106
generation of, 145
measurable, 118
profits and, 29–30
value chains, 32–33, 52–53, 99–100, 104, 105, 147, 151, 159
comparison over time, 106
embracing, 158
mapping of, 106
mismanagement of, 106
stakeholders and, 55
sustainability of, 140–42
value distribution, 101–2, 102, 103–5
fairness of, 106
value chain mismanagement and, 106
value distribution curves, 106
values, 132. See also corporate values
value sharing, 154. See also shared value
violence, 146
wage growth, 32
well-being and, 66t
Wall Street, coming fall of, 12–13, 27
water, 90–91, 91t, 98, 128, 129t, 130, 137–38, 141–42, 154
weakest links, identifying and strengthening, 33
wealth
accumulation of, 9, 136, 147, 151
forms of, 40
over-accumulation of, 23–24
redistribution of, 21
well-being, 23, 40, 110, 121, 123, 136, 152, 163
business performance and, 59–60
convention and unconventional sources of, 58–59
five drivers with positive effect on, 63–67, 66t
general, 153
individual, 40
job-specific, 153
key drivers of, 66t
measuring, 47, 57–68, 60–61, 114
social capital and, 40
wages and, 66t
WhatsApp, 16–17
“win-win-win” scenarios, 151
working hours, 136–37
World Economic Forum, 146
Wrigley’s, 16, 110, 111, 113, 115, 116–17, 118, 121–24, 122
Wuppertal Institute for Climate, Environment, and Energy, 50, 88–89, 92, 98, 127
Zuckerberg, Mark, 16