The current debate around corporate governance, leadership and corporate reputation has its roots in the business scandals in the United States and Europe during the last technology bubble at the turn of the century. The current financial crisis introduces new dimensions to this debate and is spreading the conviction that some corporate policies and individual behaviours must change in the business world.

Today, several influential voices support the thesis that capitalism must be reinvented. The G-20 summits in Washington in November 2008 and London in April 2009; the proposals for a new international financial architecture; the current redesign of financial regulation in the United States and the European Union; the scandals around executive compensation systems in Europe and the United States; and the increasing government intervention in the financial system and other industries around the world are examples of relevant voices and policy actions that point to a new direction in the balance between governments and the private sector. Most of those actions focus their attention on the government's role in the economy. This is an important reflection. Nevertheless, the effort to rethink what went wrong with the Western economies over the past few years needs to take into account the notion and purpose of the firm and the role of business leadership.

Beyond the usual explanations for the current financial crisis – the credit boom, the savings glut and the collapse of real estate – there is abundant evidence to suggest that many firms have lost their sense of mission and purpose in society.