Capitalism at the Crossroads (2005)

Prof. Hart introduces the book describing how the shift in the relationship between capitalism and environmentalism from antagonistic to (sometimes) complementary forces mirrored his own shift from distrusting capitalism to respecting its power to leverage positive social change. The "greening" revolution of the 1980s demonstrated that companies could profit by employing more environmentally benign processes, such as recycling or waste reduction.

However laudable the greening approach is, it became apparent in the 1990s that reducing the environmental impact of existing business models would prove insufficient to address the imminent environmental and social crises, according to Prof. Hart. He was among those who at that time promoted moving "beyond greening" through "creative destruction" of environmentally and economically wasteful processes, replacing them with environmentally (and economically) beneficial processes.

"Unlike greening, which works through the existing supply chain to effect continuous improvement in the current business system, 'beyond greening' strategies focus on emerging technologies, new markets, and unconventional partners and stakeholders," writes Prof. Hart. "Such strategies are thus disruptive to current industry structure and raise the possibility of significant repositioning, enabling new players to establish leading positions as the process of creative destruction unfolds."

The primary business strategy that promises to arise from the ashes of creative destruction is the BOP approach of serving the needs of the poor in ways that are culturally appropriate,