Capitalism needs to change?
Many feel that capitalism is at a crossroads. Its reputation has never been so low! Every day seems to bring a new corporate scandal including companies not paying their fair rate of tax or not paying their suppliers on time, excessive pay for senior executives, LIBOR, deceptive fuel emissions, miss-selling and many others. Not only that but the very rich just seem to get richer and sadly with many just getting poorer! Most ordinary folk have just had enough and want change!
There are, of course, a number of great ethical companies but too many seem motivated and incentivised by just one thing – maximising profit in the short term, mainly to meet shareholder expectations and sometimes personal greed.
This short-term pursuit of profit seems to encourage companies to take risks and with corporate scandals sometimes hitting share prices by 30% or more, companies have been virtually destroyed by such scandals with some needing state support to keep them afloat. It seems that sustainability did not seem part of their strategy!
Additionally, recent research suggests that 60% of employees are not happy in their current roles. Levels of bullying in the private sector are on the rise.
The reputation of capitalism is at an all-time low. It seems that things are not looking good for capitalism, at least not in the long term.
Fortunately, there is a growing movement of business people, economists, charities and organisations with concerns for British capitalism and its apparent lack of ethical values, its pursuit of short-term profit and resultant scandals, low investment in R&D and innovation, poor productivity and an unhappy workforce.
They agree we need a new approach to business where a greater emphasis is placed on ethical perspectives in business conduct such as happiness in the work-force, integrity, responsibility, compassion, respect for the environment and long-term sustainability.
Can we create a workplace environment where people are happy in what they are doing, feel valued and motivated, a place where they feel they can make a contribution, not just to the profitability of the business but to the society in which they live? We believe there are probably millions of people who would love to work in such a place.
Fortunately, many senior business people believe in this objective but are looking for ways and guidance on how to achieve it.
Social Capitalism – capitalism with a triple purpose
We believe the way forward is Social Capitalism, a new form of capitalism which has three purposes: to serve society, to respect the environment and to make an ethical profit.
Social Capitalism is a new form of capitalism where a company and most importantly, its employees, accept their responsibilities as individuals towards society and the environment as well as making an ethical profit. This concept of Triple Purpose provides a template for companies and individuals who wish to instil an ethical ethos into the DNA of their company.
The challenge for capitalism
This website is about how we as individuals can change the face of capitalism from a predominantly profit-focussed and very often an unethical ethos to a more responsible, compassionate and sustainable model that includes people and environmental considerations in all its decisions.