How can capitalism change to address urgent global crises without sacrificing prosperity? That question lies at the core of the lively DLD25 conversation between André Hoffmann, Vice Chairman of Roche, and Sandrine Dixson-Declève, Co-President of the Club of Rome, who challenge the dominant business paradigm which prioritizes profit at all costs.
“It’s not how you spend the money that matters – it’s how you make it”, André Hoffmann emphasizes. Humanity has been “very good at at extracting things in an amoral way”, he adds, “saying, ‘It’s for everybody’s good because once we have money we can spend it on philanthropic projects.’ And that is not the right way to proceed.”
Hoffmann traces today’s dominant business model to Milton Friedman’s doctrine that “the business of business is business”, which argues that companies should focus on earning profits and maximize shareholder benefits – not worry about consequences to society.
“I would contend that is absolutely absurd”, Hoffman says. “You should not worry too much about what happens at the end of the chain. You should look at the beginning: What are the root causes for the pressure on the environment?”
Drawing on his unique perspective as both a pharmaceutical executive and the son of an ornithologist, Hoffmann advocates for measuring business impact across three essential capitals: human (individual fulfillment), social (community connections), and natural (Earth’s life-support systems).
“Without nature, there is no life”, Hoffmann emphasizes, arguing that protecting biodiversity is not merely a scientific concept but fundamental to survival.
And yet, Sandrine Dixson-Declève notes, many companies are pulling out of “their climate commitments, out of their net zero commitments. Many of them also pulling out of their democracy commitments and what it means to be a good business within a democracy.” She calls this a “morality gap” in corporate leadership.
Dixson-Declève highlights the importance of “hacking the inhumanity hat is encroaching in our system” by fostering critical thinking, dialogue, and humanity.
“AI can be a tool for good”, she says – but cautions against viewing technology or AI as panacea.
