Prosperity by Colin Mayer Summary

Prosperity challenges the traditional view that businesses exist solely to maximize shareholder profit. Colin Mayer argues this mindset has harmed economies, environments, and societies. Instead, he proposes corporations should prioritize solving societal and environmental issues profitably, redefining their purpose to foster long-term economic and social well-being. The book outlines reforms in corporate governance, ownership, and regulation to align business with broader societal goals.

This book is essential for business leaders, policymakers, and students of economics or sustainability. It’s also valuable for anyone interested in corporate social responsibility (CSR), ethical business practices, or systemic economic reform. Mayer’s insights appeal to readers seeking actionable strategies to align profit with planetary and social health.

Yes. Mayer’s well-researched critique of shareholder primacy offers a visionary yet practical blueprint for redefining business success. Its blend of academic rigor, real-world examples, and policy recommendations makes it a timely resource for addressing modern challenges like inequality and climate change.

• Purpose over profit: Profit should be a means to solve human and environmental problems, not an end goal.
• Corporate accountability: Businesses must prioritize trustworthiness, values, and long-term societal impact.
• Legal and governance reforms: Mayer advocates for restructuring ownership models, taxation, and regulations to incentivize purpose-driven business.

Mayer attributes economic inequality, environmental degradation, and political distrust to the shareholder-first model. He argues this narrow focus undermines innovation, employee welfare, and sustainable growth. Instead, businesses should balance profit with responsibilities to stakeholders like customers, communities, and future generations.

According to Mayer, a corporation’s purpose is to “produce profitable solutions to the problems of people and planet.” This shifts the focus from profit maximization to creating value through ethical problem-solving, fostering trust with stakeholders, and aligning operations with societal needs.

• Ownership restructuring: Longer-term investor commitments to align with societal goals.
• Governance reforms: Boards accountable to a broader range of stakeholders.
• Regulatory incentives: Tax breaks and legal frameworks rewarding environmental and social contributions.

• “The purpose of business is to produce profitable solutions to the problems of people and planet.”
• “Profit is not the objective of business; it is a means to achieving a purpose.”

These lines encapsulate Mayer’s argument for reorienting business around societal value.

Unlike conventional texts focused on profit optimization, Prosperity offers a systemic critique of capitalism’s flaws and a roadmap for embedding ethics into corporate DNA. It complements works like Doughnut Economics but stands out for its legal and governance-focused solutions.

Some argue Mayer’s vision may be idealistic, particularly in incentivizing short-term-driven industries to adopt long-term reforms. However, his detailed policy proposals and historical examples provide a pragmatic counter to skepticism.

As debates about ESG (Environmental, Social, Governance) investing and corporate accountability intensify, Mayer’s framework offers actionable steps for businesses navigating climate crises, AI ethics, and equitable growth. Its principles align with global trends toward stakeholder capitalism.

Colin Mayer is Emeritus Professor at Oxford’s Saïd Business School, a Fellow of the British Academy, and advisor to governments worldwide. His expertise in corporate governance, taxation, and sustainability underpins Prosperity’s authoritative tone.