Early capitalism depended upon religious minorities whose members knew how to run a business and could morally justify doing so. As these capabilities diffused into the general population, business elites increasingly substituted money for social capital.  The authors trace the moral legitimation of capitalism from the Reformation to Joseph Schumpeter whose concept of “creative destruction” freed elite entrepreneurs like Donald Trump from conventional morality. In contemporary America, social networks still enforce conventional morality on small business, facilitating commerce and legitimating small capitalism. However, operating outside conventional norms, elite entrepreneurs rely on successful results to evade moral criticism.

Reviews

“The world is clamoring for alternative models and understanding of unbridled capitalism. In this original and thoughtful book, Ivan Light and Léo Dana provide a broad, comprehensive, and compelling analysis reconciling entrepreneurship and capitalism with ethics and morality. This important book provides a blueprint for capitalism with a human face and heart. In an era burdened by crisis and cycles of devastating cynicism, this book offers a well-considered optimistic future for capitalism, entrepreneurship, and humanity.” —David B. Audretsch, Distinguished Professor and the Ameritech Chair of Economic Development at Indiana University  

“In this exquisitely researched and eloquently argued volume, Ivan Light and Léo Paul Dana challenge the assertion that capitalism can only generate wealth through the anti-social, unrestricted, and amoral pursuit of profit. Mobilizing a diverse array of case studies,  the authors convincingly argue that capitalism emerged from contexts that were collectively oriented, small in scale, and socially beneficial; not unlike those maintained by contemporary religious, ethnic, and moral communities. In generating this perspective, the authors present an alternative to the dystopia of neo-liberalism that is both compelling and hopeful.” —Steven J. Gold, Michigan State University 

“At today’s zenith of the resource-based view of the firm, Light and Dana provide an intellectual and historical gravitas for the approach, building a view that includes not only social, reputational and skill based resources but also the all-important work ethic, which defined the distinct contribution Reformation era thinking and action made possible today’s models of market capitalism. Tying theory to examples where the mix of cultural and community factors differ, they span the globe and ages showing where capitalism can build or have trouble taking hold. The book’s unexpected insights and rich depictions of diverse cultures make for a fascinating and thought-provoking read.” —Jerome Katz, Brockhaus Chair of Entrepreneurship, Chaifetz School of Business, Saint Louis University 

Ivan Light is Professor Emeritus of sociology at the University of California, Los Angeles. Léo-Paul Dana is Professor of business at Dalhousie University.