How to get companies to change their behaviour?

Contemporary W estern capitalism faces two problems: Rising income inequality; The climate question. Some observers believe that reducing inequality and meeting the climate goals will require the demise of capitalism . But is the most rapidly effective solution not to let capitalism function as usual (maximising shareholder profits ) and put the right incentives in place to encourage companies to internalise the externalities generated by their operations, for example: Tax incentives to distribute productivity gains to employees; A sufficient CO 2 price; Active competition policy; A tax system that does not hamper employment; A b onus- penalty system for redundancies. C ompanies would react very rapidly to these incentives in order to maximise their profits .