Welcome back to 52 Weeks of Marketing Wisdom, where we review and recommend a new book weekly across five themes: Foresight, Customer, Strategy, Creativity & Innovation, plus two extras to complete the 52.
Our program is for busy marketing professionals seeking inspiration and growth through reading.
Rather than a simple review, we've evolved our blog posts to bring a point of view to the work and focus on how it informs what we do at Selbey Labs.
As we begin a new year, we've shifted focus to look at Innovation for the next five weeks and this week we're looking at a brilliant book by the economist John Kay setting out an innovative blueprint for business.
Hope you enjoy it.
Why now is the perfect time to read the Corporation in the 21st Century
As we step into 2025, a new chapter in global politics begins with the incoming Trump administration. For business leaders, policymakers, and engaged citizens, this marks a significant shift in priorities, rhetoric, and governance.
The pendulum is swinging away from the “liberal” ideals of the Biden era—centred on stakeholder capitalism, sustainability, and corporate accountability—toward a more traditional, market-first approach.
In this context, John Kay’s The Corporation in the 21st Century couldn’t be more relevant.
It’s not just a book about business; it’s a roadmap for understanding the role of corporations in a world where societal and political dynamics are in flux.
Kay’s insights challenge the status quo and offer a compelling argument for why corporations must evolve to serve more than just their shareholders.
Here’s why this book should top your reading list in January 2025.
The Role of Corporations in a Polarised Era
During the Biden administration, we saw a renewed focus on issues like climate change, income inequality, and corporate responsibility. ESG (Environmental, Social, and Governance) principles gained traction, and corporations were increasingly called upon to play an active role in addressing societal challenges. But with the Trump administration returning to power, the narrative is shifting.
The renewed emphasis on deregulation, free markets, and shareholder primacy could potentially pull corporations away from broader societal responsibilities. Kay’s book provides a vital counterpoint to this perspective. He argues that corporations must balance profit with purpose, serving a diverse set of stakeholders—employees, customers, communities, and the environment—if they are to thrive in the long term.
The Problem with Shareholder Primacy
The Trump administration is likely to double down on policies that prioritize economic growth and corporate freedom. While this may boost short-term profits, Kay’s critique of shareholder primacy warns of the risks associated with this narrow focus. As he writes, “The mantra of maximizing shareholder value has led to a culture of short-termism that is fundamentally at odds with sustainable growth.”
We’ve seen this play out before. The 2008 financial crisis, fuelled by excessive risk-taking and short-term thinking, is a stark reminder of the consequences of unchecked shareholder capitalism. Kay’s analysis urges leaders to move beyond this myopic view, arguing that corporations should align their strategies with long-term resilience and societal well-being.
Why Purpose-Driven Corporations Are More Resilient
Kay champions the idea that purpose-driven corporations are not just ethical—they’re strategically smarter. In a world marked by climate change, social unrest, and rapid technological disruption, companies that ignore these challenges risk becoming irrelevant or facing public backlash.
As Kay notes, “The corporations that thrive in the 21st century will be those that adapt to the changing demands of society, technology, and the environment.”
Consider the contrasting trajectories of two major companies: Patagonia and Volkswagen. Patagonia’s commitment to sustainability has built a loyal customer base and a reputation for integrity, while Volkswagen’s emissions scandal eroded trust and caused significant financial and reputational damage. In January 2025, as the political climate shifts, Kay’s message is clear: corporations must not abandon their broader responsibilities, even in a more permissive regulatory environment.
The Governance Challenge
With the Trump administration’s emphasis on deregulation, the onus of accountability may shift back to corporations themselves. Kay’s insights on governance are particularly timely. He argues for rethinking corporate governance structures to ensure that they serve all stakeholders, not just shareholders.
Boards, he suggests, must become more diverse and representative of the communities they impact.
As Kay writes, “Boards should be as diverse as the societies their corporations serve. Homogeneity breeds groupthink, while diversity fosters innovation and resilience.” For leaders navigating the complexities of 2025, this is a call to ensure that governance structures are equipped to manage both risks and opportunities in a polarised world.
Technology and Globalisation: New Challenges for Corporations
The Trump administration’s stance on issues like technology regulation and globalisation may further complicate the landscape for corporations. Kay highlights how technological disruption and global challenges demand a new approach to corporate strategy. Companies that leverage technology responsibly and collaborate on global issues like climate change will gain a competitive edge.
In this context, Kay’s call for corporations to embrace their role as global citizens is particularly resonant. “In a globalised world, corporations must think beyond profit and embrace their role as global citizens,” he writes.
This principle is crucial for navigating the geopolitical and economic complexities of 2025.
Rebuilding Trust in a Divided World
Perhaps the most pressing challenge for corporations in 2025 is rebuilding trust. Public faith in institutions—governments, corporations, and media—has been steadily eroding.
Kay identifies trust as the cornerstone of successful corporations, warning, “Trust is the currency of successful corporations. Once lost, it is hard to regain.”
Corporations that prioritise transparency, ethical behaviour, and societal contributions will be best positioned to thrive in a divided world. Kay’s insights on reputation management and ethical leadership are a timely reminder that trust is not a given—it must be earned and maintained.
Why You Should Read This Book Now
As we enter 2025, the corporate world stands at a crossroads. The shift from a Biden administration to a Trump administration signals a change in priorities, but the underlying challenges—climate change, inequality, technological disruption—remain.
The Corporation in the 21st Century equips readers with the tools to navigate this complex landscape.
For business leaders, the book offers a vision of what corporations should aspire to be: entities that balance profit with purpose, create long-term value, and earn the trust of their stakeholders.
For policymakers, it provides a framework for understanding how to align corporate incentives with societal goals. And for citizens, it serves as a guide to holding corporations accountable.
John Kay’s message is clear: the corporations that succeed in the 21st century will be those that embrace their broader responsibilities, even in the face of shifting political winds.
As the Trump administration ushers in a new era, The Corporation in the 21st Century is an essential read for anyone who cares about the future of business, society, and the planet.
The Corporation in the 21st Century, John Kay