Reforming Capitalism From Within ...

Is It Possible To Reforming Capitalism From Within …

‘Capitalism is the most powerful institution in the world’ – but is it really an institution? Or is it an idea, and aggregate category, and arbitrary and convenient distinction?

Whatever it is, it’s clear that business plays a key role in our lives. And if the majority are getting less of the pie, while the miniscule minority continue to expand their share – leading to the pressing problem of growing inequality – then what is the role of business beyond profit maximisation and return on shareholder investment?

This has led to ‘incentives (that) drive behaviors that increase inequality, reduce social mobility, devalue communities, deplete soils, acidify oceans, destroy biodiversity, trigger mass migrations and social instability, and fuel violence and war.’

Gilbert posits a Capitalism for the Future that looks a bit like Larry Fink’s ‘Purpose & Profit’ statement. As CEO of BlackRock, he is urging his clients to create ‘positive social ‘ value as an integral part of their strategic planning.

Then there is the ‘benefit corporation governance’ option legislated by the US Government which  ‘gives business leaders and investors a choice to use this new corporate governance structure that aligns the interests of business with the interests of of society.’ Another bill has been proposed for the big end of town which will make this type of governance mandatory.

But the inherent conflict between ‘Purpose’ and ‘Profit’ will not dissipate. When they come into conflict – and as sure as the sun will rise tomorrow, they will – who will get the final say?