Alex Edmans is changing how we think about money and business at London Business School. He’s not just teaching students about making profit – he’s showing them how companies can do good while doing well.
Edmans believes businesses can make money and help society at the same time. This idea is called “sustainable finance.” It’s not just about green energy or saving the environment. It’s bigger than that.
“Finance can be a force for good,” Edmans says. His popular class at London Business School fills up quickly. Students want to learn how money and investing can help solve problems in the world.
What makes Edmans different is how he teaches. He doesn’t just lecture students. He gets them involved in real-world projects. They work with actual companies to create business plans that make profit while helping people.
One group of his students helped a coffee company figure out how to pay farmers fairly while still making money. Another group came up with ways for a clothing company to be more environmentally friendly without raising prices too much.
Edmans has good reasons for teaching this way. He spent years on Wall Street as an investment banker. “I saw how finance decisions affect real people,” he explains. “When companies only focus on quick profits, workers and communities often suffer.”
His background is impressive. After working in banking, he got his PhD from MIT, one of the top schools in America. He wrote a book called “Grow the Pie” that shows how companies can create value for everyone – not just shareholders.
The business world is listening to what Edmans has to say. Companies like BlackRock and Unilever have invited him to speak. Government officials ask for his advice on making better rules for businesses.
Students love his approach. “Professor Edmans showed me that I don’t have to choose between making money and making a difference,” says Maria Chen, who took his class last year. She now works at an investment firm that focuses on sustainable businesses.
London Business School has embraced Edmans’ vision. They recently created a whole new program about sustainable finance, with Edmans leading the way. Other business schools are starting to copy his teaching methods.
What’s next for this finance professor? He’s working on new research about how company culture affects performance. He’s also helping create tools that measure a company’s social impact, not just its profits.
“The old way of teaching finance is outdated,” Edmans says. “Today’s students want to use their business skills to tackle big problems like climate change and inequality.”
Critics say his ideas are too idealistic. Some traditional investors believe companies should focus only on profits. But Edmans has data to back up his claims. His research shows that companies that treat workers well actually perform better in the long run.
As more young people enter the business world wanting to make a positive impact, Edmans’ approach is gaining traction. Major investment firms now look at environmental and social factors when deciding where to put money.
The COVID-19 pandemic has made his message even more relevant. People are questioning old ways of doing business. They want companies to care about workers, communities, and the planet – not just shareholders.
Edmans remains optimistic about the future of business. “When companies focus on creating value for everyone, there’s no limit to what they can achieve,” he says. His students are carrying this message into boardrooms and businesses around the world.
Through his teaching, research, and public speaking, Alex Edmans is showing a new generation of business leaders that making money and making a difference can go hand in hand. And that might be his most important lesson of all.
