Decades ago, capitalism was seen as a potent growth model for economies recovering from two world wars. The idea was simple, people’s prosperity and income was directly dependent on their skills and hard work. So the more meritorious got better jobs, homes, resources, while the less capable got little in return.
Capitalism is also popularly known as consumerism wherein all companies work towards acquiring more customers. They want to sell more to earn more. And for this companies keep looking for cheaper production avenues. An economy purely driven by profit motives negates its toll on the environment. And this is why we need to reimagine capitalism to be more responsible and welfare oriented.
Here are 6 articles you can read to understand this better.
1. The end of traditional capitalism has already started. Consumers are getting closer and closer to understanding that they live in an economic system that is not working for them, and will not sustain their kids.
2. It’s because it isn’t possible to expand a capitalist economy without a heavy toll on the environment. Capital economies have felled trees to build factories, bombed nations for factory oil and mass produced items that destroy the environment. Currently capitalism is directly responsible for natural disasters, famine, unequal consumption of resources and climate change. Read more about it here.
3. The way forward is conscious capitalism – one that focusses on the greater good and sustainability rather than just making profits. There are four key principles of conscious capitalism – the primary one being ‘social purpose’ where the main goal of companies and industries will be to improve society.
4. The concept has been used by few companies in the past decade like Costco, Starbucks, Whole Foods Market. Their success stories can guide other companies and industries to adopt this concept too. Especially, when big companies (Alphabet and Starbucks) use conscious capitalism is a big motivation for small and mid-sized companies to follow suit. Read about how their success here.
5. And only those industries that adopt conscious capitalism will be able to survive the coming decades. Surveys have found that 43% of people interviewed were willing to pay a higher price for products if the company supported a cause. Current market trends have shown that consumers are more favourable towards conscious companies. This only goes to show how companies can make money and serve the society.
6. Adopting conscious capitalism is a conscious political decision. Countries like India and China that have mass production need to make deliberate efforts to be more environmentally responsible than just produce goods to increase exports. And that’s when the future of capitalism will look like this.
WTD News is partnering with X Billion Action Lab for the 9th UN Young Changemakers Conclave on 27th October, at the US Consulate Lawns in Mumbai. Join us as we discuss #ReimaginingCapitalism with the Chairman Business World, Anurag Batra at the event or on our Instagram.