Howard Schultz, chairman, president, and CEO of Starbucks Coffee Company, says, “I have long believed that innovation is not just about creating new products or services; it’s also about rethinking the very nature of an organization’s relationships.”

Today, enlightened employers know that, if they want great people to perform at the top of their game, they must engage and care for employees’ well-being on a variety of fronts that go beyond a paycheck.

More recently, another big relationship shift has occurred between companies and consumers. The most innovative brands have dramatically changed the way they connect with customers by supplementing traditional marketing and advertising with social and digital media.

Now, a third relationship-driven innovation is under way, and it has the potential to improve not just our businesses but also the role of corporations, and thus capitalism, in society.

Read more in the article “Invest in Communities to Advance Capitalism“, HBR Blog Network