How an Economists Cry for Ethical Capitalism was Heard
:: 22 november 2009
Since the economic crisis hit last year, many people have been questioning the current model of capitalism; and quite rightly so. The way that the world and capitalism is currently working is unsustainable – environmentally, socially and economically. This article about Noreena Hertz is well worth the read.
She talks about how globalization isn’t just about allowing companies to trade freely all over the world. It’s about the responsibilities that come with that. She explains that this very extreme form of capitalism focuses only on the short term, and no one is thinking of the consequences.
The economy isn’t simply about a market anonymously distributing things, but also the way people relate to each other, their beliefs, the way power is distributed. All of that was being ignored.
I think we all can agree that the current model is unsustainable. And Noreena is on a mission to find a way for businesses, governments, NGOs, and the public to experiment together to design new, more-adaptive business models and financial structures that take both profit and larger social goals into account.
‘Companies should be financially motivated to behave in ways that benefit everyone’ – says Hertz.
And, to bring it all back to TIE – we are on a mission that we hope compliments this thinking. We provide business leaders with the opportunity to understand the role that all of these different actors play, and the importance of understanding society, and how our decisions impact others in far off countries.
Jack Shiply, a small coffee shop owner, sums it all up perfectly: ‘The issue of sustainability is clear: If the people growing the coffee are not satisfied with their work and lives they will, ultimately, pursue something else. We are, of course, all thus linked’.
