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    Grow the Pie by Alex Edmans Summary

    Grow the Pie
    Alex Edmans
    3.95 (258 Reviews)
    BusinessEntrepreneurshipEconomics
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    Overview of Grow the Pie

    In "Grow the Pie," finance professor Alex Edmans challenges conventional business thinking, proving companies can deliver both purpose and profit. Endorsed as "the most significant book on business purpose yet written," it's sparked debates from Wall Street to the BBC about what truly drives long-term value.

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    Best quote from Grow the Pie

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    That's not altruism, that's good business.

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    "Feels effortless compared to reading. I’ve finished 6 books this month already."

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    Beyond the Zero-Sum Game: A New Vision for Business

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    Imagine a world where businesses don't have to choose between profits and social good. Where creating value for employees, customers, communities, and the environment actually leads to superior returns for investors. This isn't just wishful thinking - it's the evidence-based reality that finance professor Alex Edmans reveals in "Grow the Pie." The fundamental problem with how we view business today stems from a "pie-splitting" mentality - the assumption that the economic pie is fixed, so any gain for stakeholders must come at shareholders' expense. But what if the pie isn't fixed? What if companies could grow the total value created, allowing both shareholders and stakeholders to benefit? Consider Merck's development of Mectizan, a drug that cures river blindness. When CEO Roy Vagelos discovered it could help millions but wouldn't be profitable, he distributed it for free. Traditional thinking would consider this a shareholder loss. Yet by 2019, Merck's stock had outperformed peers by 54%, partly because this decision attracted talented scientists passionate about solving important problems, enhanced the company's reputation with regulators, and built trust with communities. This isn't charity - it's excellence in action.

    2

    The Evidence: Stakeholder Value Creates Financial Returns

    3

    Aligning Leadership: Executive Compensation and Engaged Investors

    4

    Capital Allocation: The Truth About Buybacks

    5

    Purpose-Driven Business: From Words to Action

    6

    Our Collective Role in Growing the Pie

    7

    A Capitalism That Works for Everyone